Fitness Equipment Asset Recovery: Working out the Details
The Covid-19 quarantine has left business owners and consumers alike wondering if and when “normal life” will resume. Even though businesses are beginning to reopen, social distancing guidelines and new health standards are being heavily enforced. What does that mean for gym owners and gym patrons? How will the quarantine and subsequent social distancing guidelines affect the fitness industry in the future?
Gym Costs & Leasing Equipment
It’s no secret that owning a gym is an expensive endeavor. Depending on the size, gyms can cost anywhere from $50,000 to a million dollars to open and maintain yearly. Because of this, many gyms choose to lease their fitness equipment rather than buy the equipment outright. Choosing to lease fitness equipment has another great advantage; gyms are able to provide their clients with the best, most technologically advanced workout equipment because leased fitness equipment can be changed out every few years. With technological advancements always on the horizon, leasing equipment makes sense for gyms that want to be cutting edge.
Gyms Filing for Bankruptcy
Because of the shut-down of gyms in 45 states, gyms of all sizes are struggling to pay their rent, let alone make payments on their leased fitness equipment. Even large franchises don’t lend protection to the current situation. Over 30 Gold’s Gym locations have closed their doors permanently after filing for bankruptcy. Even though the CEO of the franchise has given assurances that the company itself is not going out of business, it leaves a lot of questions as to whether smaller, independent gyms are going to be able to reopen.
Social Distancing and New Health Standards
Even if gyms have survived the quarantine, social distancing and new health standards will have to be implemented. This includes more space between fitness equipment, contactless check-in, potential use of masks when working out, and higher sanitation standards. Less clients allowed in the gym means less fitness equipment will be needed for clients. Coupling this with the new standards for how closely together machines can be placed, suddenly a gym will not only need less fitness equipment in their space, but also will be making less money per day because of these restrictions.
But Even If People Can Come Back to their Gym, Will They?
Experts are now predicting that overcrowded gyms are a thing of the past. Many people have adapted to taking zoom workout classes from home with no fitness equipment or have invested in their own equipment to use at home. Sales for fitness equipment for home gyms have more than doubled during the Covid-19 pandemic and have even surpassed January weight loss resolution sales. With looming threats of a second and third wave of the virus, many people may opt to stay home and utilize their new investments or stay with their at home equipmentless workout routines.
The Impact on Fitness Equipment Leasing Companies
With gyms going out of business and surviving gyms downsizing their fitness equipment needs to fulfill social distancing guidelines, fitness equipment leasing companies and lenders will need to recover leased fitness equipment all over the United States. This fitness equipment represents millions of dollars of temporary lost profit for these companies. Collecting their leased fitness equipment will be crucial to the recovery of their businesses. By doing so, fitness leasing companies and lenders will be able to turn their temporary loss into a gain and lend equipment in the future to new businesses after the economy recovers from this unexpected downturn.
Recovering Leased Fitness Equipment
From treadmills to ellipticals to stairmasters and beyond, heavy fitness equipment is not easy to recover. Large fitness equipment recovery takes a group of professional movers to safely dismantle, package, and ship to the desired location. If the fitness equipment recovery is mishandled and damage to the equipment occurs, the fitness equipment recovery could lead to the fitness equipment decreasing in value. The movers need to be familiar with different types of fitness equipment from different manufacturers and know how to properly dismantle, package, and transport/ship all parts (including electrical parts).
National Asset Recovery Company Advantages
National asset recovery companies are a great option for leasing companies and other lenders when it comes to the successful recovery of fitness equipment. These organizations have established relationships with networks of professional movers who specialize in equipment recovery and who most importantly can be trusted to deliver your recovered equipment to its desired location intact.
In addition to all of this, a good national repossession company should offer to move the recovered fitness equipment to a specialized auction environment where the repossessed items will be put in front of the right audience. This should lead to the recovered items being sold at top dollar and the leasing company recovering as much of their initial investment in the fitness equipment as possible. Working with someone with experience in this field will allow you to remarket your items easily and effectively in order to obtain accurate valuation for your recovered fitness equipment.
If you are a leasing company in need of a national repossession company, consider using a company that is trusted, qualified, and that also offers capital asset remarketing so you can maximize the value of your recovered fitness equipment.
Contact Asset Recovery Company today to learn more about our Gym Equipment Recovery and Capital Asset Remarketing expertise.