How Much Do Gym Owners Make In Malaysia ?

How Much Do Gym Owners Make In Malaysia ?

How Much Do Gym Owners Make In Malaysia ?

Hei super coaches and trainers in Malaysia , how are you doing ?Today”s topic is super super super interesting as we are going to discover how much do gym owners in Malaysia actually makes?

Note: Whatever figure that is stated in this article is just an estimation based on my own experience, and it should be only use as a guide and not for actual facts.

Gyms are everywhere in Malaysia , big ,small , private studio etc. What i mean gym over here is everything that fall into health and fitness category . Business like yoga , cycling studio are fall into “Gym” category .

Gyms are everywhere , and gym are also closing every now and then. Why is that? Why some gym owners make it and some do not ?

Lets have a look at the traditional gym business structure ( gym that with heavy equipment ).

Traditional gym business model:

  1. Gym Set up : RM500k
  2. Monthly Expenses :
  • 2x Sales consultant = RM 4000
  • 3x Personal trainers = RM 6000
  • Monthly Gym Maintenance = RM500
  • Monthly Rental =RM 5000
  • Monthly Utilities = RM2000
  • Marketing fees = RM1000
  • others =RM 1000

Total Expenses + Investment

RM500k +((RM4000+RM6000+RM500+RM5000+RM2000+RM1000)x3)

Total first 3 years investment :RM1202,000(RM1.2m)

RM1202,000/3years/12 months =RM33,388

So , in order to break even in 3 years time ,every single month the gym needs to make RM 33,388 per freaking month , and this does not include the bosses salary or dividends.

Revenue Stream :

  1. per entree =RM10
  2. monthly membership =RM 100
  3. Personal training = RM 100 (per session )

Monthly Revenue :

40walk ins daily +10 hours of personal training session a day for 6 days

(40xRM10) +(10xRM100)=RM400+RM1000 =RM 1400/day

(RM1400x 24working days)+100 monthly membershipxRM100 = RM 43600

RM43600 x3 years=RM 1569600 (RM1.5m)

Breakeven:

RM1202,000/RM43600=27 months

So , this gym get to break even after 27 months , around 2 years and 3 months .

Bear in mind , there are alot of details stuff i did not put in , above is just a rough estimation .

So , if everything goes at plan , this gym owners in Malaysia get to makes ( RM1569600 – RM 1202,000 ),RM 367600 in this 3 years ,around RM10,000 a month.

Now lets look at the newer gym business model , which is more on class and community retention base .

The new way of running a gym business is very different from the traditional one .Below is the new way of building a more sustainable gym .

  1. Lower in set up cost
  2. Minimum fix overhead
  3. Open to others coaches to train at the gym
  4. Only hire freelance instructors
  5. Use members as marketing “tools”
  6. Hire only good looking staff ( i know aye!!!)
  7. Higher member fees due to more ” niche ” and “private” classes
  8. Commision split with 1 on1 training

The new way of setting up a gym is to minimize the overhead and set up cost , jack up the revenue stream , and utilize members as a marketing tools.

New Generation gym business model:

  1. Gym Set up : RM300k
  2. Monthly Expenses :
  • 2 Permanent admin stuff = RM4000
  • 3x Freelance Instructors =1 class RM100
  • Monthly Gym Maintenance = RM500
  • Monthly Rental =RM 5000
  • Monthly Utilities = RM2000
  • Marketing fees = RM1000
  • others =RM 1000

Total Expenses + Investment

RM300k +( (RM4000 + RM 800 (8 classes a day)+RM500 +RM5000+RM2000+RM1000+RM1000))x3=RM 814,800

RM 814,800/3years/12months = RM22633

So, in order to break even in 3 years , every month the gym need to generate at least RM 22633 per month .

Revenue Stream :

  1. Monthly membership =RM 150
  2. Per entree = RM35
  3. 1 on1 training = RM36 commision split per class (RM120 ,70/30 split (company take 30 ,trainers take 70))
  4. Rental fees for coaches that train at their gym =RM 2

Monthly Revenue

( 100 Monthly membership xRM150) +[(40 walk ins xRM 35 aday) +( RM36 x 8classes a day)+(RM 20 x10 classes a day) ] x24days=RM60312 per month .

In 3 years ,

RM60312x 3years =RM2171232 (RM2.1M)

Break Even

RM 814,800/RM 60312 =13 months

As you can see over here , the changes of business model does impact alot on the monthly revenue and thus the break even . Both the traditional and the new generation gym set up”s monthly membership and also walking are the same , but the different revenue stream and also the business model that focus on minimizing cost , maximizing revenue and also using members as a pomotional strategy really something that able to make big impact .

Bear in mind , there are alot of details stuff i did not put in , above is just a rough estimation .

 So , How Much Do Gym Owners Actually Make In Malaysia ? 

If you are a gym owner , feel free to share your experience with us at the comment box . For those that plan to be a gym owners by opening a gym , fitness studio or whatever is it , my best advice to you is that , workout a sustainable gym business plan , go niche , and most important , YOU ARE NOT AFRAID OF LOSING .

By the way , if you are wondering does private studio ,classes such as boxing , cycling will earn more money than those big gym , my answer to you is yes , and millennials are quitting gyms to spend big on boutique fitness classes !!!

 

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