CRYOTHERAPY BUSINESS REVENUE MODEL
Whether you are starting a cryotherapy store or adding cryotherapy services to an existing business, cryotherapy sessions provide a stable revenue stream with a minimal overhead compared to the potential profits.
17 Weeks to Return on Investment
Cryotherapy Session Costs
In general, cryo businesses charge more for a single session than subscriptions, bundles and packages. This excludes promotional prices and discounts.
- Most Efficient With the XR, your nitrogen costs are $4-$5 per session
Session Costs Across the United States
The average cost per session differs across the country based on various factors. It’s critical to research and consider the price of cryo in your area before you consider a certain price.
Average Cryotherapy Session Price in the U.S.
- Global Presence The XR Cryotherapy Chamber is one of the most popular cryotherapy machines in the world.
- International Shipping We help you get started with your cryotherapy business no matter where you are located.
Cryotherapy Subscriptions, Packages, and Discounts
Different businesses offer different subscription packages. Offering a cryotherapy subscription is a great way for a cryo business to up-sell its customers while promoting the myriad health benefits that customers receive from committing to periodic sessions.
Here are some of the examples of subscription packages that cryotherapy businesses currently offer:
Offer your customers a way to for them to pay once to receive as many sessions as they want. This is the most lucrative way to grow your cryo business and scale. Remember that the more back-to-back sessions you have going, the less nitrogen a nitrogen based cryotherapy machine uses.
Monthly & Yearly Subscriptions
Similar to the unlimited subscriptions, monthly and yearly packages allow your customers to benefit from as many sessions as they want but for a limited time frame. This could be a great way for your business to promote itself during the holidays.
3, 5, & 10 Session Packages
This is the most popular option so far. Many cryo businesses offer 3, 5, 10, 100 or even higher packages. Studies show that doing multiple sessions yield to better results than a single session so by offering packages you are increasing the effectiveness of cryotherapy for your customers. Plus, you’ll make more money too.
Time Limited Discounts
Whether you are starting up or you want to promote your cryo business during holidays, using limited time discounts is a great way to promote your cryotherapy business to your customers. Customers tend to want to take advantage of scarcity so engage with your target audience and offer them a time limited discount.
- Custom Subscriptions The XR makes it easy for you or your staff to create personalized subscriptions for your cryotherapy business. You can create unlimited, periodical, one-time, special offer, and/or free session subscription packages to suit your business needs.
- Built-In UpSell The XR makes it easy for your customers to re-subscribe to cryotherapy services and reup their subscriptions.
- Built-In Discounts Offer a discount by either providing a discounted dollar amount or discounted percentage. Limit your discounts to a certain time period or make them permanent. Take full control of your cryo price structure.
Cryotherapy Gift Cards
A great way to promote your cryotherapy services is to allow your customers to purchase gift cards. Gift cards are a great way for your existing customers to promote your products, services and brand. Successful cryotherapy businesses take advantage of their satisfied customers and allow them to share the gift of cryo with their friends or loved ones.
Personalized Gift Cards
Empower your customers with the ability to share what they love. By allowing your customers to create personalized gift cards for their family and friends, you are helping them promote your business and increase your brand equity.
- Custom Gift Cards Create gift cards that contain a certain number of pre-paid sessions or a have a certain amount in dollar value. Limit the duration and prevent gift cards from being used after a certain time period. Limit the location where a gift card can be used so you can promote a certain location.
BUDGETING FOR CRYOTHERAPY
Budgeting for cryotherapy is a critical part of starting a cryotherapy business. We’re going to make this as straightforward for you as possible. Assessing the total costs associated with a cryotherapy center depends on several factors, including the location of your business, the licenses and permits required, one time startup costs, on going operational costs, along with your experience in business, willingness to work hard, and ability to withstand a sharp learning curve.
Ideal Cryotherapy Business Location
Adding a cryosauna to an existing business is almost always the most cost effective way as you don’t have to consider rent as an additional cost. Simply having a small empty room of 8’x10’ will suffice.
Where you decide to locate your cryotherapy business will change your costs greatly. It is important to find the most lucrative storefronts in your local area while taking into consideration both your competitors and complementary businesses. Opening up a cryo center near an existing one may negatively affect your sales volume while positioning near complementary businesses such as fitness centers can prove to be beneficial. We help you find your ideal location. Learn more about finding an ideal location for your cryotherapy business.
Licenses and Permits
Some cities and states may require certain licenses and permits. You may need to contact your city and figure out the international building code, fire code and mechanical code that pertains to your business. Cryo Innovations help navigate roadblocks such as these.
Overall Cryo Chamber Cost Ranges
Nitrogen Chambers: $42,000 to $75,000
Electric Chambers: $130,000 to $700,000
Nitrogen Cost: varies depending on location, number of sessions, and the time in between sessions. The XR’s cost per session is approximately $5.
Electricity Cost: varies depending on chamber. The XR is a standard 110 volts and consumes about the same electricity as a TV.
Insurance: varies depending on coverage. On average insurance for a cryo business is $200 per month.
|XR Cryosauna:||$6,996 per month|
|Others:||$5,796 per month|
* Actual numbers may vary.
CRYOTHERAPY INDUSTRY REGULATIONS
As a successful cryotherapy business, it is important for you to ensure the highest quality of service to your customers by continuously complying with all the rules and regulations set by various administrations in your country.
Food and Drug Administration
It is important to understand that in the United States, cryotherapy chambers or cryosaunas are not regulated by the Food and Drug Administration (“FDA”) as a medical device. Therefore your consumers should be aware of the FDA’s position and guidance on cryotherapy products and cryosaunas. Click here to learn more information about the FDA’s Consumer Guidance regarding cryotherapy and compliance.
Cryotherapy operators should avoid any misleading statements about the use of their cryotherapy chambers or cryosaunas. Cryotherapy chambers are not intended to be utilized for the treatment of any type of disease, disorder or illness.
DO educate your clients on the risks and side-effects of cryotherapy.
DO NOT provide any misleading statements about the use of cryotherapy chambers.
- Cryo Innovations has 513(g) Approval From the FDA
Nitrogen based cryotherapy chambers and cryosaunas need to be properly ventilated. This requires the installation of exhaust fans to provide safe air for you and your customers. You may need a large “bathroom” exhaust fan for ventilation routed outside. Home improvement stores or even Amazon will have availability. The rule of thumb is 1 cubic feet per minute (CFM) per 1 square foot of room size.
Fan cost: $150-$200
Fan installation ~$200 You are responsible for purchasing and installing this at your business
Most general liability business insurance policies do not cover injuries such as skin burns. Therefore as a cryotherapy service provider, choosing the right cryotherapy business insurance policy will mean the difference between being covered or denied coverage.
When looking for an insurance policy look for a policy with:
Cryotherapy General Liability Insurance: This type of policy covers slip and fall claims, product liability and other general claims.
Cryotherapy Professional Liability Insurance: This type of policy protects a against injury suffered by a client from cryo services.
Cryotherapy License Action Reimbursement: This type of policy protects you during a government action against your business.
Cryotherapy Business Property Insurance: This type of policy covers your cryo chambers/saunas, computer equipment, etc.
CRYOTHERAPY CHAMBER FEATURES
This guide will help you learn what to look for in a cryotherapy machine. Here we list the available cryotherapy machine features and describe them to you. Learn about the importance of these features to the success of your cryotherapy business.
Safety and Owner Liability
Perhaps the BIGGEST RISK with owning and operating a cryotherapy business is customer safety and owner liability. It is most important that your business is built on and around a stable, safe and secure product. When comparing cryosaunas, pay close attention to the safety features provided as they can help prevent serious harm to your clients and to your business.
Look for these safety features as they help minimize your risk and liability:
Contraindications and Precautions
Having digitally stored contraindications make it easier for your users to use your cryotherapy services.
- Built-in Contraindications The XR offers built-in contraindications that are stored on the cloud and are required to be reaffirmed at every session by the user to minimize the liability of it’s owner.
You need to offer your clients protective equipment for them to wear to protect their extremities during cryotherapy sessions. If the cryotherapy machine you are interested in does not include such equipment, you are responsible to provide this to your clients.
- Gear Included When you purchase the XR, you get 2 robes, 2 pairs of booties and 2 pairs of gloves. You can use these right away to provide a safe cryotherapy services to your clients.
The death of a 24 year old woman who died accidentally while using a cryotherapy chamber after hours has raised several concerns. "Accidental death from an oxygen poor environment raises more questions than it answers". In order to provide a safe experience to your clients and to minimize your liability and risk, you should look for a cryotherapy chamber that includes as many safety measures as possible.
The XR features 8 on-board safety features and sensors to minimize your risk and liability while providing the safest cryotherapy experience to your clients.
- Fingerprint Authorization Two fingerprint authorizations are required to operate the XR cryotherapy chamber, one via an approved operator and one via an approved user.
- Operator Required The operator must touch the screen every 30 seconds to verify that they're monitoring the user.
- Door Design The door never locks and requires little force to open. The door itself contains a proximity sensor which triggers the valves to shut down when open.
- Interior Geometry Designed in such a way where if the user's head falls below the top opening for any reason, physical limitations will force the door open, activating the door sensor.
- Pulse Oxygen Sensor Ensures heart rate is in a safe range as well as monitors the blood Oxygen level of the user.
- Head Sensor If the user’s head falls below the safety level, the valves automatically shuts down.
- Emergency Stop Button Shuts down unit and stops all flow of liquid Nitrogen.
- Emergency Shut-off Valve shuts off the machine if the stop button doesn't work.
Nitrogen based cryosaunas and cryotherapy chambers along with electric ones vary greatly in their efficiency. Choosing an energy efficient and green cryotherapy machine will not only save you money, but it will also help protect our environment. Look for cryotherapy machines with low nitrogen usage if you are interested in nitrogen based machines.
Electricity and Nitrogen Consumption
There is a direct relationship between a cryotherapy machine’s energy and nitrogen consumption rate and the profitability of your cryotherapy business. Therefore it will benefit you greatly to pick a machine with low electricity and nitrogen usage. It is also better for the environment.
- Green The XR's power consumption is minimum. It is often compared to a regular sized TV.
- Low Nitrogen Usage The XR is also the most efficient nitrogen chamber in the market! With just 3 liters per session, the XR’s efficiency is second to none. Learn about the nitrogen usage statistics of the XR and read more on how to do budgeting for your cryotherapy business. See the difference between the available nitrogen options for the XR.
Like any other machine, cryotherapy machines vary in performance. Some machines are better at evenly distributing cold air/nitrogen to the body. These machines thus provide a much more effective cryotherapy experience. When looking for a cryosauna or cryotherapy chamber, look at a high performing machine that will provide the optimal cryo experience to your clients.
- Full-Body Coverage The XR offers a full body coverage using its proprietary Cyclone Flow™ technology that ensures nitrogen is evenly distributed for maximum performance.
- Advanced Recovery With its Recovery Range Scale™ technology, the XR allows users to see their recovery in real-time based on their skin temperature.
Much like how smartphones are different from the traditional non-smartphones, smart cryotherapy machines offer greater quantity and quality of tools for your cryotherapy business.
- Mobile Sign-Up The XR offers simple mobile registration for your clients. Users can register on their phone or tablet while waiting in the reception area.
- Point-of-Sale With built-in point-of-sale feature you can automate your billing and sales. Create subscription packages, offer gift-cards, manage session and sales statistics as well as give incentives for future purchases. POS is included for the first 3 years.
- Multiple Location Management The XR is built for chains and corporations in mind. The multiple location management tools allow the management of multiple business locations and cryotherapy machines from a single back-end administration system.
- Analytics At Your Fingertips The XR is a data driven power machine. With rich business analytics, and powerful business dashboards, you can make smart growth and operation decisions based on data.Watch a demo
You want to be ensured that your machine is free from defects in material and workmanship under normal user and service. That is why its important for you to want to purchase from manufacturers that provide warranty and cover their product.
CRYOTHERAPY EQUIPMENT BUYING OPTIONS
The most critical part of any cryotherapy business is the cryotherapy machine. In order to provide cryotherapy services, you must first acquire a cryotherapy sauna or cryotherapy chamber. Find out all the ways which you can get a cryotherapy machine for your business.
When it comes to buying options, most people think of financing. Depending on your personal credit you may be eligible to finance or lease a cryotherapy chamber. A financier has the following general requirements for approval:
Time in business of greater than 1 year
Personal FICO credit score of 650 and above
Reserved funds in a company back account
Here are some alternative funding options for your cryotherapy business:
Seek an angel investor. Angel investors are early stage investors that are interested in investing in startup businesses.
Prepare a thorough presentation that best demonstrates your knowledge of the business and its industry as an entrepreneur. This means that you may have to do market analysis and have a strong marketing strategy.
Prepare a business plan for your cryotherapy business. Be clear in how you articulate your needs and goals.
Show you believe in what you are doing. Investors want to see you are passionate and not trying to “get rich quick”.
Stay engage with potential investors. Follow up by sending emails with updates that do not ask for money.
Tap Into Your Own Accounts
Look into your retirement/401(k), and personal savings accounts. Note: you may want to consult someone with experience to assist you in drawing from your 401(k).
Get a second mortgage loan on your home/property. Mortgage loans often offer some of the very best rates for borrowing money.
Starting a business means you are confident it will create profit in the future. Show that you’re willing to take the risk and believe in yourself to grow your business.
Apply For Special Loans
Contact the Small Business Administration and look into acquiring a SBA loan for your business.
Loans from banks like Chase and Bank of America may approve you as well.
Borrow From Family and Friends
Send close family and friends a letter explaining what you’re trying to do and how.
Set a goal for the amount of money that you want to raise.
Don’t underestimate your weak-ties (your C-list of acquaintances). Sometimes your A-list may not want to help.
Many successful entrepreneurs have utilized crowdfunding platforms to fund and fuel their startups. These crowdfunding sites allow many people to invest in your business or idea, rather than you finding one person to come up with everything you need by themselves. The following are some of the popular crowdfunding platforms that you can use: Kickstarter, Indiegogo, Patreon, GoFundMe, Crowdrise, PledgeMusic, MightyCause (formerly Razoo), InKind (formerly Equity Eats), Crowdfunder, Give, Charitable, Lending Club, AngelList, Ulule, Funding Circle, Seed&Spark, Crowdcube, GoGetFunding, Fundable, and Kiva.
You can consider going into a revenue sharing plan with an existing business. Look for businesses in the following industries that best complement cryotherapy: Athletics, Chiropractic, CrossFit, Fitness Studios, Gyms, Medical Spas, Physical Therapy, Plastic Surgery, Recovery Centers, Salon/Spa, Sports Medicine, Sports Teams, Tanning, and Wellness Centers.
Disclaimer: Cryo Innovations does not revenue share with other owners.
HOW TO FIND THE IDEAL LOCATION FOR
A CRYOTHERAPY BUSINESS
What location should you choose for your cryotherapy business? Existing businesses already have a location that they can use for their cryotherapy business… New cryotherapy businesses however, need to do research to find out the ideal location for their business. Learn how to find the best location for a cryotherapy business.
Finding the Ideal Location
One of the keys to a successful cryotherapy business is its location. The rule of thumb is to place your business near potential customers. You need to find the right customer profiles who are likely to use cryotherapy.
Some medical, health and fitness related industries complement the cryotherapy industry because their target market is the similar to, if not the same as, the cryotherapy industry target market. You can position yourself near businesses in these industries to take advantage of the existing customers in the surrounding areas.
Top Businesses That Complement Cryotherapy:
Gyms / Fitness Centers - Cryotherapy works best for serious athletes since it can improve recovery time and decrease downtime. So its most beneficial for professional athletes, body builders and cross-fit trainers. It’s no surprise to us when we see more and more high end gyms and fitness centers add cryotherapy to their facilities so that their members can take advantage of such benefits. Find a gym or fitness center and use that location for your cryo business to maximize your revenue.
Sports Teams - More and more professional sports teams are now looking into and using cryo. Some team even have their own chambers!
Recovery Centers - Cryotherapy has been widely used to enhance recovery from injuries. Recovery centers all across the world are now looking at cryotherapy since it compliments their existing business and can increase their growth and ROI.
Medical Spas - When we think of a medical spa we think of results. People go to medical spas for advanced therapies such as anti-aging, laser treatments and such. Cryotherapy shares a lot of that in common and most med spas have customers that are interested in if not already doing, cryotherapy.
Physical Therapists - Cryotherapy augments any physical therapy since the treatment techniques aid one-another in getting the best results possible for the patient. Find a physical therapy center and start your cryo business next to it.
Chiropractors - Cryo has become increasingly popular among the chiropractic space. This is mainly because chiropractic patients continue to see positive results and therefore demand keeps increasing.
Tanning Salons - Cryo chambers can operate with minimum supervision. Much like tanning salons, a one or two personnel staff can operate and manage a cryo business with ease. Learn how the XR chamber does this with ease.
High Schools and Colleges - Some say the whole cryo scene is just a trend. Although we don’t think that we do believe catering to early adopters and enthusiasts and making it possible for them to find out on their on how cryo therapy can benefit them can benefit our business.
Data suggests having at least half of these profiles near you. This will increase your likelihood of easily finding customers. Some may become regular visitors, buying sessions once or twice per week or even unlimited sessions.
Another great option is to team up with an existing businesses that complements cryotherapy. By creating a strategic partnership, you can position your cryo business inside/next to an existing business, cutting down on the start-up cost and boosting revenue/sales potentials. We suggest you contact and talk to the business owners to then present your cryotherapy business idea to them to see if they are interested.
- Personalized Assistance Cryo Innovations works closely with you to help you find the perfect spot for your cryotherapy business.
- Demographics We have tools at Cryo Innovations to help you research your target market. Contact us and we'll be happy to help.
- We can connect you Connect with us to find out how we can connect you with an existing business so that you can create a mutually beneficial relationship.