Is your Cryo a Porshe…or a Toyota?
Have you ever thought about what your cryotherapy chamber is actually worth? If your business simply did not work and you had to sell your chamber how much of your investment could you recover? While this is not a comfortable subject it is a necessary one. What if your cryotherapy business fails?
Do you have an asset or liability?
Spending 40 to 100 thousand dollars on equipment is a big decision. When your business is doing great and you can sell a lot of cryotherapy sessions your chamber is an asset. But what if business stops? Will you be able to sell it, or end up with it in your garage at home? The financial education guru Robert Kiyosaki has taught for over 25 years that “an asset puts money in your pocket, and a liability takes money out of your pocket.” Once you stop making money in cryo your expensive chamber becomes an instant liability.
Best Resale Value – what is your backup plan?
As a consultant I often ask entrepreneurs what plans they have in place if they lose their business. The number one answer is always “I’ll just sell my chamber.” But is it that easy? A quick search on eBay reveals an average of 25 chambers for sale at any given time, and many have been there for months. My search today found (in alphabetical order):
- Active Cryo (multiple units)
- CryoMed (two)
- Impact (multiple units)
- Juka (multiple units)
- My Cryo (two)
- Mobile Cryo units in trailers (three for sale)
- Revo Mobile
The market for used chambers is already saturated, and none of the units are selling for even half of their original purchase price.
What’s Your Cryotherapy Chamber Really Worth?
Your chamber is only worth what someone will pay for it, and right now nobody is buying used chambers for more than 50% of the retail price. Chamber pricing models are similar to automobiles: it’s only new until you buy it, and it must be a quality or unique vehicle to hold its value. Once it becomes used the inherent value plummets. The question you need to ask yourself is if your chamber is a quality machine that holds value.
Did you buy a Porshe or a Toyota?
From my personal experience with vehicles I discovered the hard truth of inherent value. I have owned a brand new Porshe 911 and a brand new Toyota Camry in my adult life. When I traded in the Porshe I only lost $14,000 from the original purchase price. But when I traded in my Camry I didn’t even receive half of its original value. The Porshe it turns out is a superior vehicle with a constant market demand, although it was impractical after I had my first child. The Camry was a great family car but for resale it is just too common and simply not a special car.
Compare your cryotherapy chamber with the laundry list of chambers for sale on eBay. There are some models that are noticeably absent simply because they have kept their owners in business or they kept their resale value high and sold quickly.