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learned over the years is the influence of socio-
economics or lack thereof. "We have found
communities that are very middle class that
pay double what some communities with very
high disposable incomes pay," he says. "It's not
a function necessarily that they can afford it or
not; it's a function of who sets the bar."
If there is already competition, especially from
a municipality-operated facility or non-profit,
pricing may be out of your hands, which can
hamper your business model. "Just because
you build a nicer facility or operate things
better, people generally aren't going to pay
double for the same product."
Even communities
that have no
established
sports facility can already have built-in pricing.
For example, there may be a community
that doesn't have enough basketball courts.
A facility may be able to provide more, but
pricing already exists. "We ask them, 'Where
do you play now?' 'We rent the school gym for
$10 an hour.' That price point isn't going to
work for you as a commercial venture, and to
make it work, you have to charge $50 an hour
– they're not going to pay that."
locaTion
Gill says location is important for a facility,
but as a destination-based business, it's
not essential. "For most facilities, it's not
a business where people drive by, see the
building, and go, 'Let's play some indoor
soccer.' They sign up, they come to the facility
Just
because you
build a nicer facility
or operate things
better, people generally
aren't going to pay
double for the same
product.
