Highlights of Bar Method’s Item 19 Financial Performance Representations (2012 FDD) – Part 2
Preliminary Notes (for High, Medium, and Low Volume Bar Method Exercise Studios)
- These sales figures represent revenue only from Bar Method classes. They assume average revenue per client visit of $20 based on a price point that varies from $16 per class (i.e. discounted cost for prepaying for 30 classes) to $35 per class for a single class.
- These pricing assumptions are valid for most North American urban markets. There are some suburban markets and rural markets where prices would have to be lower and a few markets where prices could be higher.
- These statements assume 15,000 client visits in the first year, rising to about 37,500 client visits in the 8th year.
- A studio “matures” in about 8 to 10 years. At that time, profits tend to flatten out unless prices can be increased. However, spending on exercise tends to be discretionary so there may be resistance to price increases.