While there are 339 Hoboken condos on the market today, I am focusing on Hoboken Business today. Forget the 4 falafel places. All better than the next. Forget the dozens of pizza places all crammed next to each other. Forget the tourists who wait in line for a pedestrian cannoli and then head out of town without either pizza or falafel. Here’s the latest. A spin center. Spin Bikes. I saw a place today in a remote part of town where only beer by the liter is likely to draw consumers. This new spin center had 20 or so bikes in a room for 20 or so bikes. I know what the neighbor pays in rent and it got me thinking. What’s the business plan here? Let’s see doing some back of the envelope math. 20 bikes, 4 classes a day, 7 days a week, that’s like 560 bike hours. If each rider buys a 3 rides a week pass for oh say $50 per month, it’s about $9400 per month in revenue. Let’s round up to $10k per month. This is $120k in revenue a year BEFORE expenses. rent, heat/cool,electricity, staff, etc. I don’t get it. Even if the owner works every shift (and that’s a lot of riding), what could he be pulling on $8ok BEFORE taxes.
Don’t blink or this business might ride right on by. Best yet. I heard that another Bill Gates is creating a rowing machine center in the same building. Only with twice the space and rent. Makes perfect sense because the one rowing machine at the gym is always in use. It sat idle so long I had to ask a trainer what it was for. Maybe NYSC suckered this guy into buying all they have. Here’s to hoping that the these new exercise specific places last longer than the Harvest Cuisine.