So, you’ve decided it’s time to invest in fitness equipment for your facility. Whether you’re looking at brand new or replacing old products, there’s plenty to think about: what your members want, what has the coolest new features, your overall budget, etc. But what about the long-term potential costs that go along with owning and maintaining a gym?
Ask any accountant what the ‘Total Cost of Ownership’ is of gym equipment, and you’ll get a fairly analytical answer that speaks to both direct and indirect costs of a product over its usable life cycle. This can seem like a vague notion of incurring costs over time when considering what products to buy. The total cost of ownership can include anything such as installation, maintenance, operating expenses, upgrades or any number of possible scenarios where you can quantify the cost of using something after the initial purchase.
People often only consider the initial cost of an item when considering what to buy, but looking at your total cost of ownership can have a dramatic effect on how much money you can spend (or save) over the life of the product.
Let’s use something we’ve all purchased as an example: A car.
Not too long ago, my car was nearing the end of its usable life cycle. We shared a lot of good memories, but sadly, it was time to move on. The first thing I did, as most do, was to set a purchase budget. I decided how much money I could afford for a down payment and calculated how much I’d like to pay per month over 4 years in order to establish my purchase price. For many, the decision on what to buy can often end here. You have your budget, and now it’s time to find something within that price range.
However, I soon realized that on a 4-year loan, I would be paying a few hundred dollars a month just for the privilege to drive as I pay back the bank. Initially, I only considered this as my monthly cost, but then I started thinking about how much it would be to fill the tank every couple of weeks. Gas adds money to my monthly costs in addition to the purchase price. This ultimately led me to choose something that was more fuel efficient in order to keep my cost of ownership down.
I also thought about insurance costs. As cool as it would be to drive a sports car, they are more expensive to insure, so I decided to go with something else in order to manage my cost of ownership a little more. Then I did a little research on general maintenance. Some cars simply cost more to keep running than others so this greatly affected my decision.
Perhaps most importantly, I considered the warranty. A good warranty could possibly eliminate any ownership costs if something went wrong in the first few years. By carefully considering all of the additional money it takes to drive, I estimated that I could save several thousand dollars over the life of my auto loan.
Much like the scenario above, many fitness buyers only consider the upfront purchase cost of fitness equipment. They have a budget to outfit a facility but fail to consider the long-term costs of ownership when factoring in things like maintenance, replacement parts, power consumption, and warranty. Just like when I bought my car, these considerations can have a drastic effect on how much you end up paying for your products.
So before you buy new fitness equipment for your facility ask yourself these questions:
- Will primary components such as the motor last?
- How often will I need to have a maintenance tech service and lubricate my treadmill and are there other options that require less maintenance?
- What are the most common issues with fitness equipment and are these covered under the warranty? This can include wear items such as decks, belts, pulleys and other moving parts.
- Does the warranty give me peace of mind that I can worry about other aspects of my business while the product manufacturer takes care of me and my investment?
With SportsArt, you’re going to get the most out of what you spend. But don’t take my word for it — check out how we break it down and how you can save a ton long term with your fitness investments.