Fitness Boutique

Goal:

Grow membership, purchase equipment and possibly change locations. Fitness boutique.

Situation:

Client wanted to grow membership from new tenant buildings being built in neighborhood and add new classes that required new fitness equipment. Many spaces were available in higher visibility locations for lease to accommodate possible growth. Client needed cash for capital expenditure of equipment and down payment on new location with possible capital improvements to new space. Currently has high retention rate with members and operating with a small profit every month.

Backpocket’s Solution:

Forego moving until membership grew to level at which membership fees covered additional lease expense. Research equipment and find most cost effective way to purchase equipment; buy used, buy new, rent, borrow. Market new classes and memberships to new tenant buildings in neighborhood to grow revenue.

Backpocket’s Impact:

Client found barely used equipment online for 25% of cost of purchasing new equipment of same caliber. Client promoted new class options to current members at increased membership fees and promoted entire class schedule to new members at a higher rate. Currently operating at a higher monthly profit, with the intent to move within a year after saving profits to pay for downpayment on new space and capital improvements, rather than taking out a loan from bank.