USED GYM EQUIPMENT.COM 

   The “Used” Fitness Equipment Industry Can Speed Up The Growth Of The Whole Health Club Industry, Faster Than Any Other Force Can!

The time has come to quit looking at the used equipment industry as the “Red headed stepchild”. Read these facts and insights to see why the used industry has the potential to grow the whole fitness industry.       

     Let’s start by looking at the auto- mobil industry.    The auto industry growth was stagnate until they established an effective lease and trade in program.

     By offering to lease new cars with low payments on 2 or 3-year leases they stimulated growth.  Before this people would keep a car for 6 to 10 years on average.   After the lease and trade-in programs were implemented new car purchases exploded and the average repurchase cycle was 2 to 3 years, not 6 to 10.

     The key to this process was the credibility of ‘Used’ car sales.   Without public confidence in used car purchases there would not be a big enough demand for used cars to make the lease programs successful.

     Now, in California there are 3 used cars sold for every new car.  On the surface this seems like bad news for new car sales because more people are buying used cars than new cars.   But that is not the case.

     The big demand for used car sales has allowed new car sales to skyrocket and the average price of a new car has gone through the roof.   It seems like the average price for a car is around $25,000 to $35,000!    The manufacturers can get this kind of money on new cars because of the demand for used cars.   Before the lease and trade in programs were implemented retail prices for cars were much lower and total car sales were considerably less because people held onto their cars much longer.

  The Fitness Industry Needs To Follow This Example

  Example To Speed Up Growth.

  The fitness industry is maturing and huge consolidations are all vying to show impressive growth.   But how does a company grow faster than the industry itself is growing?

  Increase The Demand For Used Fitness Machines.

     It seems that most Health Clubs keep their fitness machines from 4 to 6 years before replacing them with new equipment.   Imagine if you can cut this new equipment buying cycle down to 2 to 3 years.  That would double the amount of new equipment being sold by the manufacturers, which will increase their profits and spawn capital to grow the industry.  (Continue next column)

  The Big Manufacturers In Our Industry Are Just Starting To See The Benefits Of A Short Term Lease And Trade-In Program.

     The problem is where is all this 2 and 3 year old used equipment going to go?   In the past the big companies like Life Fitness would give a $500 trade-in and then take the used equipment to the dump and bury it.  The strategy was to get it off the market so it would not affect new equipment sales.

     The problem with this philosophy today is that clubs will not get rid of 2 or 3 year old equipment for only $500.  The equipment is built so sturdy that it has an 8 to 10 year life span and you can’t get a club to trade up to new equipment at 3 years unless they get much higher price for their used equipment.  Which means the manufacturer cannot afford to throw the trade-in equipment in the trash.   They must find a used equipment buyer who is willing to pay 50% of its new value.

  So A Demand For Used Equipment Must Be created Before Manufacturers Can Expect To Sell Short term Leasing Programs On A National Level.

  That’s where a strong and credible “used equipment industry” must be established before explosive growth can occurred.

     When new equipment sales double and 2 and 3 year old equipment starts coming into the market there has to be a strong demand for used equipment.

  It’s Time For All The Big Players To Take A Proactive Approach To Help The Industry Grow.

    No longer can they turn their head to used equipment.  No longer can they try to stop companies like Used Gym Equipment.com and others from buying replacement parts to refurbish the old equipment and bring it back to market.   No longer can they make replacement parts on used equipment outrageously expensive and hard to get.

    If the big manufacturers don’t let the small refurbishing companies do what they do best, there will never be a credible used market. And the demand will be small and the new equipment lease and trade-in programs will not work.

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