New Business- Agua

[jw101]

Hey everyone! I'm getting ready to pitch an idea to Start Garden. here's the website: http://www.aguaconcept.weebly.com/ I won't go into details now, but the elevator pitch is this: State of the art water fun set in an sophisticated, modern, urban environment. Give me opinions and ideas on how it is or how I can improve it. Thanks!

[belleislerunner]

Interesting concept. What are the price points for entry? Is it daily/monthly?

What differentiates this from the day spa at MGM Casino or the YMCA pool?

Or an LA Fitness?

Or is akin to a Goldfish Swim Pool but just for adults?

http://goldfishswimschool.com/swimmi...cationTab:Swim Lesson Fees

How much does Goldfish charge? Are your prices comparable?

Where will people park who go there?

Just points to consider as you go through your process. Good luck!

[jw101]

This is where the concept stands out. At MGM and YMCA, the pool facilities are connected to the entire complex- especially at MGM, finding the pool then ending up where you have no business is a virtual certainty. The price points would be between $5 and $8 for average daily adult/child/senior prices, making it cheaper than others. As the Goldfish swimming comparison, it is not a learn to swim program, but it is more of an open world, relaxation zone offering fun, exercise and comfortability for all ages. As for parking, cold weather could be a problem after swimming, which is why valet will be available for a low price. Also, locker rooms will include full body dryers as another amenity.

[belleislerunner]

Perfect - so let's role with $10 a day pass. That seems reasonable.

What is the monthly cost to include heating/cholorine/electricity/rent for the space?

Once we have that number, how many daily customers do you need [[i.e. cost/$10)?

How will you go about getting those customers? Is that count reasonable?

One of the reasons you might at least consider a "monthly option" is because that's how gyms suvive - it's much easier to manager a business/cash flow if you can count on a given amount of revenue every month. If you only relied on daily sales - it'd be much harder to predict. If you have a snowstorm for a week - and relied on dailies - you could find yourself hurting. A monthly option would provide that buffer. Gyms count on people signing up and paying without going, or going infrequently.

[jw101]

Assuming that our space would be 6,000 SF, our heating and electricity[[during winter months) would run about $1984 a month. For the average commercial rent price in downtown Detroit, rent would be $108,000 a year. If Agua got 150 customers a day on average, that would be $1,500 a day, $10,500 a week, and eventually would equal out to $304,000 a year. Any downtown business gets heavy press from all around, which will help with promotion. Also, the many downtown events- such as sports games, the auto show, winter blast, jazz fest, DEMF, and many more- word of mouth and foot traffic is another plus. Online advertisements will target gym users, and fitness and health sites, while also targeting those visiting Detroit tourist sites or hotel websites.

We can consider a special pass! Possibly even memberships, offering exclusive discounts and amenities.

Thanks so much, I really appreciate your help!

[bailey]

Assuming that our space would be 6,000 SF, our heating and electricity[[during winter months) would run about $1984 a month. For the average commercial rent price in downtown Detroit, rent would be $108,000 a year. If Agua got 150 customers a day on average, that would be $1,500 a day,$10,500 a week, and eventually would equal out to $304,000 a year.

assuming this is serious... and setting aside the assumptions about space and fixed costs... I mean staff? insurance? city certifications/inspections? Build out? running costs for the pool?..etc. 150 customers every day on average to pay 10 bucks for a swim and to lounge by a pool on Woodward in Detroit? I sort of find that a bit unrealistic. Put it out on M-59 and maybe you can pull that type of traffic...but i'd guarantee it's going to be stay at home moms looking to entertain kids and not beautiful people looking to lounge by a pool.

Any downtown business gets heavy press from all around, which will help with promotion. Also, the many downtown events- such as sports games, the auto show, winter blast, jazz fest, DEMF, and many more- word of mouth and foot traffic is another plus.

Is foot traffic really something that is going to translate to customers? I'm not sure random guy going to football game is going to think... "Hey, why not stop in for a swim!"

Online advertisements will target gym users, and fitness and health sites, while also targeting those visiting Detroit tourist sites or hotel websites.

If they're looking to swim laps, wouldn't' they just stay at their club? and if they're looking to lounge by a pool...why not the hotel pool/spa that is right there in the building.

Thanks so much, I really appreciate your help!

not trying to be a debbie downer... but I just don't get the concept here. Is this being done elsewhere?

[belleislerunner]

It can work - it just has to be the right location etc.

DC has a few examples. http://penthousepoolclub.com/

When I joined Vida there in Chinatown after college, they had two small pools that had the machines that pumped the waves. See pics in below

http://vidafitness.com/verizon#3

I think your bet is to start small like that - where it's serious swimmers with a steam room/sauna relax. Almost think of a Russian/Turkish bathhouse that are popular in NYC. http://www.russianturkishbaths.com/

Then it becomes a mini relaxing destination - akin to a spa without the noise/kids.

This keeps costs way down as you're not building full lap pools [[LA Fitness style) but can compress everything into a 10 ft by 10ft space.

I think it's doable - it's just finding the business model that works. Given the cold winters - I could see a Turkish bath/Korean spa type thriving.

[jw101]

Doubles as a spa/ jacuzzi? Yeah, that could totally work. Thanks!

[detmsp]

I don't know if this is feasible, but it would be pretty cool to have a lounge style [[as opposed to a lap swimming type) pool in a glassed in penthouse the top floor of a building downtown. You'd have awesome views of the buildings around you and in the middle of the winter, the sun beating down on you through the the glass ceiling would feel amazing.

Of course building this out on the top floor, enclosing it in glass, etc probably just quadrupled the costs... but it would be cool!

[jw101]

assuming this is serious... and setting aside the assumptions about space and fixed costs... I mean staff? insurance? city certifications/inspections? Build out? running costs for the pool?..etc. 150 customers every day on average to pay 10 bucks for a swim and to lounge by a pool on Woodward in Detroit? I sort of find that a bit unrealistic. Put it out on M-59 and maybe you can pull that type of traffic...but i'd guarantee it's going to be stay at home moms looking to entertain kids and not beautiful people looking to lounge by a pool.

Is foot traffic really something that is going to translate to customers? I'm not sure random guy going to football game is going to think... "Hey, why not stop in for a swim!"
If they're looking to swim laps, wouldn't' they just stay at their club? and if they're looking to lounge by a pool...why not the hotel pool/spa that is right there in the building.


not trying to be a debbie downer... but I just don't get the concept here. Is this being done elsewhere?

"Stop on in for a swim?" Did you even bother to read the entire concept? Let alone just the headings? I'll give you some time to go back and think about that statement.

[jw101]

New updates to the website [[ http://www.aguaconcept.weebly.com ) and we have a Go Fund ME site http://www.gofundme.com/ix9m1s .Thanks!