offshoremanxman Posted October 31, 2022 Share Posted October 31, 2022 Just now, Roger Mexico said: Quite. Presumably the extension will have to be more realistic than is rumoured the current situation is. I would assume so the figure I heard was mad considering what that likely profit profile of a gym is. As he explained it to me you were paying the sort of office rental prices a large corporate would be paying just to run the floor space of a gym. The Coffee Shop throw in is interesting though I wonder how the building lease is carved up? Coffee is high margin maybe they’re subsidising one floor space to maximise profits in another? Quote Link to comment Share on other sites More sharing options...
The Phantom Posted October 31, 2022 Share Posted October 31, 2022 (edited) 25 minutes ago, offshoremanxman said: I would assume so the figure I heard was mad considering what that likely profit profile of a gym is. As he explained it to me you were paying the sort of office rental prices a large corporate would be paying just to run the floor space of a gym. The Coffee Shop throw in is interesting though I wonder how the building lease is carved up? Coffee is high margin maybe they’re subsidising one floor space to maximise profits in another? I would have thought gyms were pretty high margin too. Average membership is £30 - £50 per month depending on whether classes are included or not and about half of the people that have memberships go less than once a week. Would all come down to your overheads. Edited October 31, 2022 by The Phantom Quote Link to comment Share on other sites More sharing options...
Banker Posted October 31, 2022 Share Posted October 31, 2022 4 minutes ago, The Phantom said: I would have thought gyms were pretty high margin too. Average membership is £30 - £50 per month depending on whether classes are included or not and about half of the people that have memberships go less than once a week. Would all come down to your overheads. Fairly high fixed overheads eg rent, rates, electric, heating etc which needs putting on whether 2 or 20 in gym. Also wages if any instructors have to be paid unless they’re self employed 1 Quote Link to comment Share on other sites More sharing options...
The Phantom Posted October 31, 2022 Share Posted October 31, 2022 3 minutes ago, Banker said: Fairly high fixed overheads eg rent, rates, electric, heating etc which needs putting on whether 2 or 20 in gym. Also wages if any instructors have to be paid unless they’re self employed That's my point. If they had 2 or 20 actually in the gym, they would still have the same amount of income coming in from the monthly membership payments. The ideal scenario would be nobody using the gym but loads of members signed up to DD monthly payments. Instructors/trainers are generally self employed and members pay extra for those. For basic staff, you'd need reception staff, cleaners etc and at least one person there that has a remote clue about training. Interestingly my membership hasn't increased in price in almost 10 years. Quote Link to comment Share on other sites More sharing options...
0bserver Posted October 31, 2022 Share Posted October 31, 2022 Looks like Monsoon/Accessorize are closing at 88 Strand Street and being replaced by the Hongkong and Shanghai Banking Corporation. https://gef.im/2022/10/31/hsbc-plans-high-street-move/ Can't be that often that a bank opens a new branch these days. Quote Link to comment Share on other sites More sharing options...
Banker Posted October 31, 2022 Share Posted October 31, 2022 4 minutes ago, The Phantom said: That's my point. If they had 2 or 20 actually in the gym, they would still have the same amount of income coming in from the monthly membership payments. The ideal scenario would be nobody using the gym but loads of members signed up to DD monthly payments. Instructors/trainers are generally self employed and members pay extra for those. For basic staff, you'd need reception staff, cleaners etc and at least one person there that has a remote clue about training. Interestingly my membership hasn't increased in price in almost 10 years. I understand Comis has had an influx of members due to gym at cycle 360 closing plus the body craft closure, plenty of parking outside plus discount for golf members so May have lost members already Quote Link to comment Share on other sites More sharing options...
The Phantom Posted October 31, 2022 Share Posted October 31, 2022 2 minutes ago, Banker said: I understand Comis has had an influx of members due to gym at cycle 360 closing plus the body craft closure, plenty of parking outside plus discount for golf members so May have lost members already I can believe it. Not many other gyms for the southlanders. Shame you no longer can access the swimming pool/spa with your gym membership at the Mount. Quote Link to comment Share on other sites More sharing options...
John Wright Posted October 31, 2022 Share Posted October 31, 2022 17 minutes ago, 0bserver said: Looks like Monsoon/Accessorize are closing at 88 Strand Street and being replaced by the Hongkong and Shanghai Banking Corporation. https://gef.im/2022/10/31/hsbc-plans-high-street-move/ Can't be that often that a bank opens a new branch these days. Keep up at the back. Pretty common for branches to move, however. Even on Island. Quote Link to comment Share on other sites More sharing options...
offshoremanxman Posted October 31, 2022 Share Posted October 31, 2022 56 minutes ago, The Phantom said: I would have thought gyms were pretty high margin too. Average membership is £30 - £50 per month depending on whether classes are included or not and about half of the people that have memberships go less than once a week. Would all come down to your overheads. Staff costs will be relatively high too. As you say it comes down to your overheads. So if your basic floor space cost is massive as your lease is huge you’ve not got anywhere else to go to save money. A small unit up at Balthane will cost you £150k to buy. If I was running gym that’s what I’d do. A mortgage would pay for itself in a few years. Quote Link to comment Share on other sites More sharing options...
Major Rushen Posted October 31, 2022 Share Posted October 31, 2022 Bodycraft Landlord statement to Manx Radio ’ In response, the landlord provided the following statement to Manx Radio: "Bodycraft Fitness debt exceeds their annual rent currently. It is increasing continually and they have not paid a single payment of rent of service charge in xxxxx months. We are also receiving other bills they have not paid. Bodycraft Fitness’ debt’s all post date Covid contrary to their comments on Facebook. The tenant has had 4 months rent free as a consequence of Covid. "At present Bodycraft Fitness are not paying any consumption bills under their service charge which means they are expecting the Landlord to fund their business and keep the lights on, which we have done until this point as they had assured us they would make payment but it is apparent they can and never could do this. "We were informed by Bodycraft 2 weeks ago they were intending to voluntarily liquidate the business. "Bodycraft Fitness have been given the opportunity to pay the bills and have since admitted they are not and never have been in a position to pay them despite assuring us they could. "Our only route in these circumstances is to exercise the right of re-entry under the lease. This would prevent the consumption bills accruing and the rental levels getting out of control even further. Of course the consumption could be turned off but then the gym could not operate in any event." Quote Link to comment Share on other sites More sharing options...
0bserver Posted October 31, 2022 Share Posted October 31, 2022 Is that building one of Tilliard's? Quote Link to comment Share on other sites More sharing options...
The Phantom Posted October 31, 2022 Share Posted October 31, 2022 4 minutes ago, offshoremanxman said: Staff costs will be relatively high too. As you say it comes down to your overheads. So if your basic floor space cost is massive as your lease is huge you’ve not got anywhere else to go to save money. A small unit up at Balthane will cost you £150k to buy. If I was running gym that’s what I’d do. A mortgage would pay for itself in a few years. There are Warehouse units in the Industrial Estates in Douglas that would be about big enough for a gym going for about £30k annual rental. 1 Quote Link to comment Share on other sites More sharing options...
Major Rushen Posted October 31, 2022 Share Posted October 31, 2022 6 minutes ago, 0bserver said: Is that building one of Tilliard's? No Quote Link to comment Share on other sites More sharing options...
The Phantom Posted October 31, 2022 Share Posted October 31, 2022 9 minutes ago, 0bserver said: Is that building one of Tilliard's? Osbourne Quote Link to comment Share on other sites More sharing options...
offshoremanxman Posted October 31, 2022 Share Posted October 31, 2022 44 minutes ago, The Phantom said: There are Warehouse units in the Industrial Estates in Douglas that would be about big enough for a gym going for about £30k annual rental. Yes but as you say the South actually could benefit from something that’s accessible. 1 Quote Link to comment Share on other sites More sharing options...
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