How to estimate number of customers.

eric3eric3 subscriber Posts: 4
edited December 2007 in Business Planning
  I am working on a business plan that includes the type of membership business model commonly found in health clubs.  You pay a monthly fee and can visit whenever you want.
 
I have a good idea of how many memberships I could sell (i know very well my market and the number of potential customers i the market)
 
But how can I estimate the number of members who will come on any given day (or at any given time)?  I feel like I need that number first to determine the size/design of the facility and figure how many memberships I am able to sell.
 
Thanks for your help.
Eric
 

Comments

  • RichRich Las Vegas, NVadministrator Posts: 636 Site Admin
    are there companies that ar in your niche but are not catering to your geographic market? if so, call their owners or membership folks and probe.
  • eric3eric3 subscriber Posts: 4
  • eric3eric3 subscriber Posts: 4
    Thanks for your responses.
    The business is a private outdoor pool/swim club in an urban area which has none at all.
    I am not sure how counting customers at another club would help as I don`t know what their total membership is to compare attendance numbers with (and it would be a suburban club with different demographics too.
    And I am fully aware of the drop out rate or non-attendance rate of health clubs but I feel like there is a unique reason for that.  People just have a hard to time sticking to a workout routine.  I don`t feel like that translates to other seemingly similar "membership" type businesses where similar discipline is not required.
    But obviously no matter how enjoyable an activity, not everyone attends regularly.  No matter how beautiful the day, when I drive by the marinas, most boats sit unused.  I just wondered if there was a commonly accepted formula for a rough estimation of this
     
    Eric
  • infinique1infinique1 subscriber Posts: 0 Member
    Try going to the streets with the product/service and see how much people are willing to pay. At least you get a proof of concept. Next try to do some census to determine the demographics of your customers. You should have a better clue then.
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