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by kristianc
2887 days ago
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I’d imagine even a moderately engaged gym user would lose the gym money on every visit, in staffing costs alone. The marginal cost of each user rises too, as people that are unable to get on machine are more likely to churn. It is however usually outweighed by the huge numbers of people who simply do nothing with their subscription. |
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A gym user attending a gym doesn't incur significant additional staffing costs. The work required to clean the gym may increase a bit but that'd be nowhere near the price of even the cheapest gym memberships.
> The marginal cost of each user rises too, as people that are unable to get on machine are more likely to churn.
That's not a cost, it's a factor for the overall churn rate and marginal cost for acquiring a new user. It'd limit the max profitability of a gym (i.e. getting to churn = growth equilibrium) but it's not an operational cost.