i math gooder wrote:
30 per month = 30 x 12 = $360 per year. for 5 years = $1800.
1,500,000 / 1800 = 833.33 runners needed so almost the 10,000!!!
oh wait it is $1,500,000 per year?
ooops - so 1,500,000 / 360 = 4,166 users needed.
so lets say they charge a modest $10/month fee seems reasonable.
10x12 = $120 per year per person. x 5 years = $600.
1,500,000 / 600 = 2500 users needed. Which is still a lot.
The point is still valid, but the numbers were a little skewed.
I'm not following why it changed to $1.5mil per year, and then back to per 5 years.
Interesting question though, a track operated like a 24hr gym. Gated entry with member keycards maybe.
Borrow the 1.5mil for 5yrs at 5% and you'll pay $27,600/mo, round up for O&M and your monthly expenses are $30,000.
You could go cheap and get more members expecting most to not actually use it, like planet fitness. Or charge more with fewer members. Either way income is limited, and the only variable is to extend the payout period. Let's assume max income is at a $30 fee with 300 members = $9,000/mo. You'd have to extend your payout period to about 30 years to break even monthly.