In response to unstable; I openly criticize your post, but do not mean any disrespect.
I think your idea is rather Utopian, neglecting individual motive and inherent risks associated with opening a facility by ones self.
The initial cost of starting a facility that I described above varies from $15,000 to $30,000. These costs include initial rent expense (security deposit, first and last months rent), insurance policy premium, cost of incorporation to remove individual liability, any build out/construction costs due to alterations made to existing structure, and the purchase of gym equipment).
The monthly expenses would vary between $1500-$2500 each month (rent, insurance, utilities, upkeep, and miscellaneous costs).
I doubt anyone would be willing to invest $15000-$30000 with monthly liabilities of $1500-$2500 without the intention of producing a profit. For anyone working the typical 9-5 job this is a fairly large amount of money to put at risk without any intention to reap a profit.
The probability of a new business failing is rather large; operating with no intention to earn a profit increases the risk of failure by requiring the owner to invest additional money when costs exceed the revenues. I think members would be extremely wary to accept the liability of incurring added monthly dues, either permanent or temporary.
If a group of individuals, say 30, came together with the intention of equally investing money and time to produce a nonprofit gym, this would reduce individual risk, but I have still yet to find 5 people whom would be willing.
Assuming the gym owner is also the operator, he/she would be required to forgo the earnings from the typical 9-5 job. Assuming this annual salary is $50,000 this would have to be added to the operating costs of the gym.
This brings monthly fees from 1500-2500 to 5500-6500 (roughly). For arguments sake, let?s say that monthly expenses are still just $1500, how would you produce a way to charge members varying prices to cover costs. If only 10 members signed up the first month, the monthly dues would be 150 each. Would the initial member be told his dues are 1500 but will decrease to 750 if a second member signs up? I understand your stance on cost sharing, but it only works when there is enough initial members, it fails when a new business initially has no members.
You might say that the owner does not need to be there, but again the tragic truths of reality exist, requiring ,at least initially, an individual preferably the owner the remain present (possibility of theft, make sure member are happy, make sure equipment is operating properly, etc.)
I could delve much deeper into this topic, but I think I?ve already bored most readers, which I apologize.
In short, I think it is extremely difficult to start and maintain a gym as a sole owner with the intentions of not taking a profit. The risks are too large and initially the gym may operate at a loss for the beginning months. I understand a gym can be very lucrative, but I don?t see an issue with someone profiting by means of opening up a gym. I?m sure many member of T-Nation have fantasized of quitting their job to open a gym.
In retort to your last statement,
?I wouldn’t be looking to profit off of guys who work 9-5 jobs who are competing in a sport where they can’t earn a dime for their accomplishments (outside of sponsorships).?
I find it rather incomprehensible to make such a statement. Again I think it stems from your Utopian ideology, but am I curious as to what exactly you mean.
Do you not think an individual business owner should only make a profit in certain fields? Is there any difference between the individual profiting from owning a car dealership to the individual owning a gym? Basically every activity you or anyone else engages in does not produce them a profit, but they voluntarily pay an individual who profits from this activity because the user enjoys it. In addition what do you mean by “guys who work 9-5 jobs” is there a classification of individuals that deserve special treatment due to their selection of employment?
I know this may be off topic, but I am curious as to what you mean by both of those statements, if you could elaborate further. My last comments may have sounded like I am inherently ridiculing your statements, I apologize. I have come across many people with similar ideological stand points, but yet to hear any rational explanation of how such a system would function effectively and efficiently.