Chapter 475 - Deposit Fitness (1/2)

Chapter 475 Deposit Fitness

Pei Qian was even happier after Assistant Xin was done with her explanation.

As expected, the fitness industry was promising! What was there to worry about since there were so many successful stories of failed gyms?

Pei Qian nodded. “Hm, let me give it some thoughts.

“By the way, are there any newly opened gyms nearby? Or any ready-made venues that can be used directly by setting up some equipment? Look for them, save time for renovation by using money.”

Pei Qian wanted to open the first gym as soon as possible and see what would happen.

He would open a few more if everything went well so that he could lose more money in this

cycle.

It could also stop loss quickly if he accidentally made money and think of other ways.

Assistant Xin considered it for a moment. “I do know a few… high-end gyms nearby. However, they might not necessarily be willing to transfer ownership. I’ll get someone to ask.”

Pei Qian began considering his plans for his gym after Assistant Xin left.

He tried to digest and absorb as much ‘gym failure experience’ from Assistant Xin’s investigation report as possible. He would integrate all the characteristics of failed gyms into one!

Pei Qian knew very well that Tengda Corporation had grown rather big and had abundant funds. He would definitely invest a lot no matter which industry he were to enter.

The large amount of initial investment would increase revenue pressure, but it will also be easier to attract customers, especially high-quality customers with high net worth.

The difficulty of losing money was getting higher.

Therefore, he had to steel himself and not be led around by fate if he wanted to lose money!

He shouldn’t think ‘I can lose money if others can lose money if they do this’. If he really thought so, he would probably make a dogmatic mistake.

According to the analysis of the report, the fundamental reason why many gyms did not make money lied in the relatively large investment in the gym itself such as venues, equipment, labor, or other expenses.

Selling membership cards alone could also get good benefits if it was in some developed countries where people generally have fitness habits. It would then enter into a virtuous circle.

However, due to the economic development level and people’s perception in China, most people had no fitness habits. Moreover, they were not willing to spend more money. It would be difficult to make money by selling membership so they must sell private training sessions.

This idea would be the same as the domestic Krypton Gold Online Games. First, use low prices to attract more people into the gym as much as possible and then pick out those richer ones.

There were three kinds of people in the gym to put it bluntly:

The first were the hot-headed lazy bums. They were those who felt the excitement for a short while and would cool off after a while.

People who did not need money and wanted a healthy body. They were afraid that they would not be able to sustain themselves so they signed up for a private training session to supervise themselves.

Those who could persist by themselves.

The gyms like the first two types of people, but it was such people that would resist the offers from the gyms.

However, there were too few of such people around.

The gym mainly earned through membership fees from the first type of people while they earned through private training sessions from the second type of people. They attracted both rich and poor.

Therefore, Pei Qian thought for a while and decided to do the opposite.

It would be the same as the previous idea, to cut expenditures and reduce resources. On the one hand, he had to increase daily expenditures as much as possible; on the other, minimize their target user groups and make less money.

First, do not earn anything from the hot-headed lazy bums!

Other gyms sell half-yearly cards and annual cards. The longer the time, the more discounts there would be. That was to take advantage of their hot-headed characteristics and use discounts to encourage them to apply for long membership cards.

However, these hot-blooded people generally could not sustain this effect. The longer they set it to be, the more they lost out.

Pei Qian decided to calculate the price for the day!

Other gyms are members who sell for half a year or a year and count whether they come or not. The membership that Pei Qian wanted to sell would only be deducted based on the day the customer came.

It was also impossible for the other gyms to refund the membership fees. They could only transfer the membership to others, which was very troublesome. The gym that Pei Qian wanted to open would allow the users to withdraw their balance in their accounts at any time.

This way, the hot-headed lazy bums would not be able to give the gym more money!

Next, he would not earn a penny more from a whale!

The other gyms were frantically selling private training sessions, providing better services for high-net-worth users to obtain greater profits.

Pei Qian decided not to sell any private training sessions.

All personal trainers would have the same benefits and wages and would not earn commissions.

The personal trainers would be on standby all the time. They would answer any questions the clients had. They would also let them know if they see clients doing something wrong. However, they would never talk too much, let alone promote any courses. Want to find an exclusive personal trainer? Want to pay for a private training session?

Sorry, we do not offer one-to-one services.

The more Pei Qian thought about it, the more satisfied he was.

This plan would shut out most of the clients’ money.

The hot-blooded would first be dissuaded by the high price. Even if they applied for the card on a whim, the balance could be refunded at any time.

Those who were rich and wanted one-on-one training would not be able to find such services here.

Those who really understood fitness would definitely choose cheaper gyms as long as there was equipment. There was no need to pay extra to come to this gym. The only people who were interested in such a model would be those who were slightly affluent, enthusiastic about exercise, and dismissive of hiring private trainers.

However, the current level of economic development had not reached that lifestyle level, and Jingzhou was a less developed second-tier city. The number of this group of people was small, and it was unlikely that the gym would be profitable.

In this way, the gym would become a pure loss. The more he opened, the more he would lose!

Of course, the system was not so foolish.

The requirement of the system was that this industry must have theoretical profitability. The profitability could be reduced to a certain extent if it could earn him a certain reputation.