As an industry veteran for over 25 years now, I understand both sides of that coin. I was in the club business for the first 10 plus years of my career and the last 15 or so has been on the equipment side of the business. I could comment extensively on how manufactures and clubs could work together more effectively for what would likely be of mutual benefit. But in the interest of time, I would make these few remarks. Though our company does sell some degree of new products from major manufactures (their names excluded for the purpose of these comments), our company concentrates on used, demos, repo's, refurbished, and the like as our primary product offering. In this aspect of our business we may have in inventory any of up to 20 or more different manufactures products on hand at any given time in our 50,000 sqr. ft warehouse. Often times non-equipment items are also available at huge savings such as lockers, tanning beds, flooring, mirrors, TV's, audio visual equipment, coolers, saunas. If its possible it could be in a club, its possible it could be in our inventory. To name of few of the problems and possible solutions to your concern as it pertains to used products could be:

1. How do you accurately identify good, quality, well performing, cosmetically attractive used products from those that are not. Reply: Unfortunately, the internet has done more bad than good in some cases as it pertains to used equipment. Often times individuals advertise items they dont really have in stock. They just hope they can find it if you call and ask for the advertised item. Verify where exactly the product is located. Is there a warranty. If so, who administers it if needed. Its easy to say you have a warranty of some type on any product, but ask for the name and number of who you are going to call if you need to use it. Make the call, speak to the person and verify the accuracy of the claim. If your not dealing with a company which you have a history of dealing with, always try to see, inspect and try out the equipment yourself. Photos are better than nothing, but is that really the item your going to get and a photo doesnt indicate how well an item runs or sounds when turned on. Though there are very few people who do so, if possible ask the opinion of an independent appraiser or equipment expert about your purchase. I am often called by landlords, attorneys, banks, leasing companies, club owners, or anyone else who wants an objective opinion on the value of the item(s) your considering to purchase or sell for that matter. Todays equipment world can be very confusing as it pertains to specific models, brands, features etc and how to distinguish one from another as well as the various values of each. Remember, used equipment comes in many different forms, prices and condition. It may be a 30 year old worn out used piece, or an item thats just 3 to 5 years old but in good condition or could be refurbished to your specs, or near new equipment such as demos, repos, close outs etc. We often get equipment that is brand new and never used or less than a few months old but it is likely to be discounted 25% to 50% even though its new or near new. We recently bought a package which a club owner leased for $40,000 but he ran out of money during his build out process and never got to open unfortunately. The financial result was it was sold for $18,000 by the bank who financed it but the equipment had never even been out of the box or even put together. Though these are less common than most opportunities, but if you are patient, deal with a reputable dealer, comparable deals are out there.

2. Big mistake I see commonly by club owners whether they are buying new or used equipment for that matter is they only view equipment purchases as a hard cost, a capital expenditure, or simply part of their initial or on going operating cash flow drain. Instead, they need to learn how to use their equipment purchases as marketing opportunities, promotional events, re-grand opening events, recruiting tool directed torward former members or a referral basis for existing members. If youre going to spend a significant amount of funds on equipment at one time, capitalize on it, promote it, etc. Nothing troubles me more that to install 6 figures worth of equipment into a persons club and call them 3 months later and ask how many new members they benefited from their purchase, and not only do they not know, they didnt even try. Our truck drove off and they went back to work as if it was business as usual. New equipment should mean new members and there are specific methods, strategies and techniques for accomplishing this goal. When you think about it the two biggest reasons to buy any equipment at any time is to 1. Get new members or 2. Keep the members you have. If you are not considering how this is going to happen with your purchase your missing the point of the purchase.

3. Be patient and only deal with real professionals. The issue with any equipment which is not new from a dealers perspective is the uncertainty of what is going to be available when. I have club owners buy equipment up to a year before they open or think they are going to need it. Why, used dealers dont manufacture equipment, we search and identify good buying opportunities for our customers. My closest customers and I work together as far ahead of time as possible developing a list of what they are going to need and when. If I dont have the items in stock at that time and can reserve that item for them, I go to work locating through my countless resources attempting to locate what my customer needs but within the price, brand, model, quality, time frame, color, etc that we established early on. When a good opportunity comes available comes along, we move on it saving our customer 35% to 80% on what they might pay if new. Remember, patience and lead time are critical often times to accomplishing this successfully. Make a specific list, give a specific time line, or other issues which are important to you on the purchase to your equipment dealer. If given enough lead time, our company can likely find anything at a very attractive price in new or near new condition.

4. As far as creative financing options. Some dealers will allow you to actually do a lay away time program. Yep, just like your mom used to likely do when she was buying the xmas present for you she couldnt really afford when you were a child. In other words, offer to pay a percentage down, and an agreed upon amount per week or month until its paid for or an agreed upon trigger point has been paid which allows you to receive the item or items. If there is still an outstanding balance when you receive the item the equipment dealer is much more confident knowing they have already received a reasonable portion of their balance prior to delivering it to you. Make your payments on time and the terms should improve over time. Also, always ask for a trade in credit for any equipment you are replacing or may have laying around the club which you dont really need or use any longer. Where do you think used dealers get some of their inventory from anyway.


This is a very small list of thoughts or ideas which might be helpful to you. If you would like more details or additional thoughts and ideas on when, where, why or how to acquire equipment at exceptional values and perhaps with original and innovative strategies or unusual locations feel free to contact me at tim@venturefitness.com

Thank you and I hope you find some benefit to the suggestions.

TW