T Nation

Valuing Weights in a Gym


#1

I am possibly thinking about buying a fitness club. Most of the machines and equipment is outdated. How would one value these sub-par machines and equipment? One good thing is that the gym has a hell of a lot of weights in the form of dumbbells, and plates. I live in Alaska, so the shipping of these weights alone is costly. How would one critically value the weights themselves. For instance, what would be the critically assessed value of a 45lb plate, a 55lb dumbbell, etc? Is there a FMV formula? I know I would have to account for shipping into the valuation, yet I don't know the base as of yet. Any advice or feedback?

Thanks,

T


#2

Well, you could get away without any of the red-headed stepchild of the gym.....the 35lb plate.


#3

Write down what you're considering buying from that gym.
Check online if any website has a better deal. Check shipping estimate.

Buying this for personal or commercial use?
If for personal, how far have you come? Would you be better off with a power rack, more weights than you can deadlift and two oly db handles or do you rely on machines to a great extent and so on.


#4

I hate those stupid gingers.


#5

It's true though, if the OP doesn't have any, no one will notice.


#6

My olympic set at home came with the 35. I hate that fucker. I'd sell it on craigslist but I probably wouldn't get shit for it.


#7

^^ Ha! Just one?!

That's be funny...one 35 in a gym. Sitting there alone.

Aw fuck...Dixie's Finest is going to come along with one of those Forever Alone faces on a 35 now.


#8

Probably would take the purchase price minus depreciation? Ask an accountant.


#9


Here is what I use my 35's for.


#10

OP, as a point of reference... i've seen a set of dumbbells 20 lbs - 55lbs (in pairs) go for like $100 on craigslist... so used plates and dumbbells can be bought cheap... usually the seller just wants them moved and gone...

oh and DJ nice farmer's walk setup...


#11

^ Thanks kid that works for me made them, they are also filled with cement. heavy fuckers. With the 35's on there its 120 pounds apeice.


#12

I don't know much about the value of machines but plates, from what I've seen go for about $0.50/lb on average.


#13

As you have said that you're looking at buying a business, I would not put as much effort into evaluating the assets worth as I would trying to establish the income that business can provide. What is the net income, cashflow, roi, repayment, etc.

They may be outdated, but if you can get people lined up to use them, does it really matter what they are worth?

Also, for what purpose is this valuation needed? If you are doing this as part of a business plan for a bank, they would be more concerned with liquidation value than whether you're getting a good deal.

That said, if you need to establish a value, it's all about making REASONABLE estimates based on comparable sales. If at all possible, try to find similar, if not identical pieces of equipment. You would then make adjustments based on information available, such as age, condition, features missing/included. If I have more than a handful, I would throw out the outliers. You could also try looking for a dealer in the region and asking them. As you are in Alaska, this process may be very difficult, so again, ask what is reasonable in each case.

As a last resort, I would look at what it would cost to purchase new or comparables in other places and work in the shipping costs.

In the abscence of a thriving market, you're really just making an educated guess, so don't sweat it too much.


#14

Im curious why that specific weight was made in the first place.


#15

Make money if you were selling equipment why not?


#16

Word. Thats the reason I plan on buying mine separately from a cheap source once I start my home gym


#17

I'm with Fraggle, valuation should be based on established cash flow of the gym and Net Operating Income.

Are they trying to give you a FF&E value and that being part of the assets/value of the gym to establish a purchase price?

With how many gyms are shutting their doors I would value good equipment at pennies on the dollar let alone old sub par equipment like you stated.

A little more info would go a long way.


#18

I've seen used weights like that go for $.50-$.80 per pound. Anything under that would be a great deal. As for shipping, it might be better (if reasonably possible, as Alaska is sort of large) to go and get the gear with a truck. Shipping will run you more than you actually paid for the plates. I have no idea what a price would be for dumbells.


#19

My guess would be that Kg plates were either more original or more popular. Kg plates come in 5kg, 10kg, 15kg, and 20kg sizes. 15kg is close to 35lbs, closer than 30, and no one wants a 33lb plate. They probably figured that, if its popular with the more messed up parts of the world it'll be popular with those that use the imperial weight system as well (the 35lb~15kg plate).


#20

Blasphemy. You people probably like your weights rubber-coated, octagonal and with a handle cut thru, dont you? 35s are old school, I've never seen a chrome-palace, "fitness center" that has them. Almost all - if not all - of the serious gyms I've been in do have them