Setting up a new gym is not easy on the purse strings, with the average cost of setting up a moderate-sized gym pegged at around $115,000. A large chunk of that expenditure will be furnishing your gym with fitness equipment.
You have two choices when it comes to furnishing your new gym with gear:
1. Either buying gym equipment or
2. Leasing gym equipment.
Let’s take a look at the pros and cons of both of these options, and see what factors you should consider before making a decision.
The basic difference between buying and leasing gym equipment is pretty straightforward. When you buy gym equipment, you outright purchase everything at a cost. When you lease gym equipment, it works the same way renting a property does.
A financial lender purchases the equipment and you get to use it as your own for a predetermined period of time. Of course, you will be paying them a monthly rental during that term, inclusive of interest and other fees.
When that lease period is over, you can either renew your lease with the lender, purchase it from them at a reduced cost or return it to them.
Let’s get a little deeper into the pros and cons of buying gym equipment.
Leasing gym equipment comes with its own set of advantages and disadvantages. Here are some of them.
So how do you decide whether you should buy your gym equipment or lease it? Here are some factors to consider.
Think about what your immediate needs are in terms of equipment. Do you need all the latest, trendiest brands? Or is it enough for you to run your setup with core exercise equipment?
Also, spend some time researching different brands and prices before you make a decision.
Your startup budget is probably the biggest factor in this scenario. Keep in mind all the expenses you have to cover before you decide. Also factor in the amount of space you have, and the cost of maintenance.
This will help you decide if you should buy new gym equipment or second-hand gear, what types of brands to consider, or if you should simply lease everything.
Finally, think about the future before you decide.
It would be impossible to say that one choice is better than the other. This is because it depends entirely on what your situation is as a business owner.
For some people, leasing gym equipment gives them the opportunity to build their businesses without having to stretch themselves too thin financially right at the beginning. For others, buying their gym equipment outright makes more sense, because they have the capital to build an asset right now.
However, knowing the pros and cons of each option, as well as other factors that should influence your decision, should definitely help you make the right choice for your new fitness center.