The International Health, Racquet & Sportsclub Association is the fitness industry's only global trade association representing over 10,000 for profit health and fitness facilities and over 600 supplier companies in 75 countries.

 

 



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Entries in budget (1)

Wednesday
Oct262016

Best Practices: How Much Should I Spend on Fitness Equipment? 

The following post was written by Melissa Rodriguez for our Best Practices series.

Question: As an independent health club operator, how much should I spend on each type of equipment each year?

That’s a good question to ask. I’m sure you’re well aware of the important role that equipment plays in attracting and maintaining members. According to The IHRSA Health Club Consumer Report, eight of the top 10 club attractions cited by members are equipment-related.

Facilities responding to IHRSA’s 2015 Equipment Survey—the basis for The IHRSA Health Club Equipment Report—said they spent an average of $84,172 on new fitness equipment in 2015. Specifically, fitness-only clubs spent an average of $92,000, while multipurpose clubs spent $88,000. Nearly half of annual equipment spending (45.9%) was allocated to cardio machines.

It’s also important to note that the top-performing clubs reported spending more on fitness equipment than others in the overall sample. In fact, those clubs ranked in the top 50% in terms of EBITDA (earnings before interest, taxes, depreciation, and amortization), spending an average of $90,655.

In addition, determining the most productive use of a club’s square footage is another critical business decision. Among those responding to the survey, cardio equipment commanded the most space at 20.1%, followed by traditional strength equipment at 15.7%. Group exercise and functional-training areas were allotted 12.1% and 8.2% of the space, respectively.

Finally, The IHRSA Health Club Equipment Report, sponsored by Precor, reported that the average club has 19.2 group cycling bikes, 15.4 treadmills, 11.5 ellipticaltrainers,92 dumbbells, and 12.8 barbells.

Melissa Rodriguez
Senior Research Manager
IHRSA
Boston, MA