Confidential
3/13/2016
Mobile Hydrostatic Gold Standard Testing Lab—Business
Opportunity
Unique first to market business with virtually no competition!
As you are aware by now, hydrostatic Gold Standard Testing is considered the “gold standard”,
or the method by which all other methods determine their accuracy. This method has previously
only been available at a few universities and hospitals, so it has virtually been inaccessible to the
general public.
Now, through Gold Standard Testing, LLC, you may purchase a Mobile
Hydrostatic Gold Standard Testing Lab to service the area in which you live for the nominal cost
of $125,000.00 for a city, or $190,000.00 for a state. This lab includes all of the following items,
making
it
a
ready
to
work,
turn
key
operation:
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3/13/2016
2011 or newer Penske fleet vehicle completely renovated with the following improvements:
a. First, why a Penske instead of another vehicle or new? A new box truck similar
to the ones we use costs approximately $45,000 more than we pay for the Penske
trucks. We chose Penske, because they have a complete computerized history of
each vehicle and its maintenance records. In my opinion, they maintain their
vehicles better than that of their competitors, which results in longer life and
better resale value. Each vehicle of this type is engineered to go over 250,000
miles between overhauls. Since we purchase the vehicles with between 100,000
and 125,000 miles, and we only put fewer than 10,000 miles a year, we feel the
cost/benefit ratio is maximized with this vehicle, and it should operate for many
years without major expenses related to maintenance.
b. The interior of the truck is similar to that of a very professionally appearing clinic
with bright lighting and all white clean surfaces. The walls have one and one half
inches of rigid foam insulation, and the ceiling has one inch of rigid foam
insulation, which allows the heat and air conditioning to keep the interior
temperature within the comfort zone regardless of the outside temperature. We
have tested members in 115 degree temperatures in Las Vegas, and zero degree
temperatures in Aspen, Colorado. Laminated to the foam is a commercial high
gloss fiberglass type of washable, waterproof panel. There is one private dressing
rooms for the convenience of the clients, a bench along the wall and a computer
counter with storage. All surfaces are washable and water proof or water
resistant. The floor is a commercial epoxy floor with a raised bacteria static deck.
This construction methodology facilitates easy cleaning with minimal time
required.
c. The Custom Built Stainless steel insulated dual wall Hydrostatic Tank with
Stainless steel lids is a work of art. After it was professionally engineered, it was
manufactured by a company that specializes in upper end kitchen appliances,
hoods, etc. The lids are securable which allows transporting with approximately
300 gallons of water without any leakage. This tank and its electrical components
is the most technologically advanced hydrostatic weighing system anywhere in
the country, bar none. No expense was spared in the system’s design and
manufacture.
d. The stainless steel steps retract under the bottom of the truck for ease of access
and storage.
e. Four hermetically sealed load cells support the suspended floor of the tank. Load
cells have a 20+ year life.
f. The Commercial swimming pool heater, filter and two speed pump are secured in
the 3’ X 3’ insulated, water proof mechanical room.
g. One wall mounted digital indicator with custom software allowing it to display
the clients’ underwater weight with a “stable lighted number”.
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3/13/2016
h. A new laptop computer with Gold Standard Testing custom software installed.
Over the past 14 years, the software has over $18,000 invested, and all future
updates are included in the initial price of the unit.
i. High speed Printer
j. Permanently mounted 7 kw, gas underbody generator, sized to power the whole
lab and its accessories when shore power is not available.
k. Shore power converter and 50 foot heavy duty electrical cord.
l. The Onan generator is securely mounted under the box of the truck.
m. Two roof top air conditioners.
n. Two fresh air adjustable roof vent
o. One 24” wide insulated RV exterior door.
p. Propane heating system for the cold weather.
q. The truck is painted with a high quality two part automotive paint (white).
r. Lettering and logos identifying the unit as being the Gold Standard of testing.
s. Heavy duty, four corner hydraulic leveling system which levels the entire truck,
automatically.
t. Scale
2. The package includes one week of on site training in your city.
3. The package includes one month of bookings for a three day a week schedule in your
city.
4. The package includes access to your scheduling calendar for your city. This calendar is
accessed through our web site.
5. Should you choose, ongoing facility selection and booking is currently available at an
additional monthly cost.
6. Email and telephonic support is available on a reasonable continual basis.
How are we different?
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3/13/2016
There are a few other mobile hydrostatic labs out there, but what is the difference? First, we
started with the concept of hanging some type of contraption over the side of the Athletic Clubs
swimming pool as is done by several independent testers around the country. This method was
quickly dismissed for three reasons.
a) First, from a liability point of view. Should the apparatus fail and fall into the pool on top
of the client, the liability for us and facility would be astronomical.
b) Set up and shut down time would be considerably longer.
c) Time between tests would be longer, restricting the number of clients we could facilitate
during the allotted time.
d) Since this method would be used in the swimming pool, the temperature of the water
could not be controlled or maintained in the comfort zone for the client.
e) The pool would have to be closed to swimmers for the day of testing because the
resulting waves and disruption of the water would make it difficult to get an accurate
reading.
f) This method would eliminate the possibility of testing Athletic Clubs and Corporate
Wellness Centers that did not have a pool.
We then thought of putting the complete lab in a trailer and towing it behind a truck or other type
of tow vehicle. This method eliminated all of the problems stated above. However, we quickly
discarded this method as well. To use a trailer, the trailer would need to be at least 20 feet long
to house everything needed in a similar truck with a 16 foot box. This is because, a trailer being
so low to the ground would disallow the installation of the necessary equipment that is currently
mounted under the bed of our truck, such as the generator, propane tank, four corner hydraulic
leveling system, etc. In fact, I don’t see how you could put a leveling system on a trailer. So,
you are at the mercy of the topography of the parking lot. If you were to mount these items
inside of the trailer, it would be dangerous and take up valuable needed space. In addition, the
length of the trailer plus the added length of the hitch would make it very difficult to maneuver in
tight shopping center parking lots and the parking lots of our corporate wellness center’s parking
lots. Finally, a trailer would require the high added cost of a separate tow vehicle for each unit.
For our first production unit, we narrowed the project down to a commercial gasoline powered
truck with a 24 foot box. Using a 24 foot box is how we built our first unit. It worked well, but
had wasted space, and was more difficult to maneuver in the parking lots than a shorter unit
would be.
We finally settled on the same truck manufacturer (GMC) with a 16 foot box (Morton). Now, it
is easy to maneuver, the leveling system works very efficiently for the size of the vehicle, and
there is ample room for all necessary components to make the lab complete.
How our tank is different
Since Hydrostatic Testing has been limited to a few universities, there are only a few kinds of
tanks available. These tanks range from concrete tubs built into the floor of a building to a
Confidential
3/13/2016
variety of modified hot tubs. We determined early in the game that most of the professionals we
deal with, deserved and expect a more professional appearing system. Credibility is very
important. The fiberglass also disallows the installation of load cells to be concealed on its rails
because of its weak structural walls and round hot tub type corners. Therefore, in that style of
tank, the weighing system has to originate from an autopsy scale hanging from the ceiling with a
rack, sling, or chair hanging from the scale into the water in the tub, in which the client has to
precariously climb into or onto. I found by getting tested with this method myself, this system
makes the customer feel very claustrophobic, trapped, and unstable, because of the awkward
position I had to be in, to be balanced on the rack. In addition, it is very difficult to get a good
stable reading from the analogue scale from which you are suspended. The technician generally
has to hold the chain under the scale with one hand, and the other hand is holding the rack that
the client is balancing on. It is often a futile effort to stabilize everything to minimize the wild
swinging motions of the scale in order to get a reading. Phew! It is difficult just imagining such
a system. It also requires a high degree of technician skill. Even, then, if you are able to get a
stable reading, it looks unprofessional to those who may be watching, especially if you are
dealing with an educated person in the field.
Most universities and human performance labs use stainless steel tanks because of their rigidity
without having to be extremely wide and their complete maintenance free construction. Most of
these systems are fabricated on a one off basis. Even when stainless steel is the choice of the
tank, some of the older systems use the analogue scale hanging from the ceiling as mentioned
above. However, the newer systems use the load cell concept. A load cell is a hermetically
sealed, waterproof, stainless steel device that senses and determines how much of a load is put on
it. The voltage required to power a load cell is registered in milliamps. Although they are sealed
and kept completely away from the clients, were you able to cut the wire leading to the load cell,
and hold the end of the exposed wires, you would not feel any electricity because of the extreme
low voltage that is actually measured in Milivolts. This system is completely safe and has been
used in many universities for over 20 years without failure. Anyway, the load cells support the
secondary floor of the tank so all the client need do is lie down on the floor of the tank which has
16 inches of water in it. The client is in pushup position and simply lowers his/her head under
water and within 6 seconds, their under water weight is displayed as a solid, locked on number
on the digital indicator mounted on the wall above the tank. Nothing could be easier.
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3/13/2016
Commonly asked questions and their answers:
Q. How long does it take to conduct the test?
A. From the time the client walks in the door to the time they walk out, tested with their
report in hand is 10 minutes.
Q. How many facilities do you service?
A. This number is contingent upon how many days a week you want to work and how large
the facilities are. If you assign one facility a full day, and work three days a week, that is
36 facilities you will need in the 90 cycle before you go back to the beginning facility to
start retesting. If you assign two facilities per day, that number doubles. We find that
corporate wellness centers tend to comprise about 20% of our business, and the rest is
made up of Athletic Clubs, Personal Training Centers, YMCA’s, County and City
Recreational Centers, and smaller studio’s such as Jazzercise, Tae Quan Do centers, etc.
Q. What is included in your overhead?
A. Unlike most businesses, we have no inventory, supplies, payroll, or advertising expenses,
unless you, the owner, choose to hire someone to operate the clinic. In that case, you
have payroll. Our expenses are pretty much limited to insurance, gasoline, paper for the
printer, and chlorine for the water.
Q. How did you come up with the price for the test?
A. We started at $40.00, which was the number required for our business plan to work.
From there, we increased the price incrementally up to $59.00, at which point we noticed
resistance. So, we backed it off to where it currently is at $49.00 for the initial test,
$39.00 for re-tests, and $29.00 for employees of the facility at which we are testing.
Q. Is the system patentable?
A. I suppose it is, but I have not dedicated any time in that area to determine its viability.
Q. Do the employees require any kind of certification?
A. No, however I prefer to hire certified personal trainers since they are already reletivly
informed on body composition.
Q. What warranties come on the equipment and truck?
A. The external equipment is all new and has its own warranty from the manufacturers, and
the Tank and all of its components are warranted for one year from the date of purchase.
Q. What kind of insurance do you recommend?
A. I recommend standard vehicle insurance, a minimum of $1,000,000 liability insurance
per occurrence with an umbrella of $3,000.000, and business insurance.
Q. What does the marketing material cost?
A. The initial promotional material is emailed to the facility resulting in no cost.
Confidential
3/13/2016
Q. What is the competition in most metropolitan areas?
A. We as well as other professional in the field consider "competition" as other Hydrostatic
Body Fat Testing Facilities. Understanding that, to the best of my knowledge, there are
no other mobile facilities in the city in which you are inquiring. On the other hand, are
there individuals who have Calipers, Tanita scales, Futrex machines, Bod Pods in a lot of
cities? We encounter such other methods in EVERY area that we impact, but soon after
our arrival, they tend to be dismissed as inaccurate by the facilities that they work with,
and we end up with the account.
Q. What is the demand from visited sites for return visits and in what time frame?
A. If we do well on the initial visit, we return every 90 to 120 days depending on the
facility. If we do poorly, I generally give them one more chance and often we do better.
Q. I really have no significant background in "fitness". How much of a problem is this?
A. None. What is important is that you believe in fitness, and if you don't, start. You need
to be charismatic and outgoing. The rest, I can teach to you.
Q. What kind of income can I expect?
A. The following pro forma is indicative of working within certain parameters. It should
answer these questions:
Confidential
3/13/2016
Disclaimer, For illustration purposes only.
This is not a guarantee of income. Individual
results will vary.
Gold Standard Testing Worksheet
INCOME:
10 days
15 days
20 days
20 test at $49.99 per day = 980.00. This can be
accomplished by testing one good facility per day or
two facilities at the minimum of 10 tests per half day.
10 full days at $900 per day
Gross Monthly Income
Approx.
TTL. INCOME
9,000
9,000
9,000
16,500
16,500
16,500
18,000
18,000
18,000
?
0
0
0
150
200
145
100
150
100
300
?
0
0
0
150
200
145
150
225
150
300
?
0
0
0
150
200
145
200
300
200
300
1,145
1,320
1,495
7,855
15,180
16,505
EXPENSES:
Payroll to person operating truck
Location booking staff
Advertising and Marketing
Inventory
Phone (maximum cell phone fee)
Truck Insurance
Liability Insurance
Supplies
(truck and water sanitation)
Gas
Maintenance
Miscellaneous
TTL EXPENSES:
MONTHLY GROSS PROFIT/LOSS:
Assumptions:
A full day is considered to be 9am till noon,
and 4pm till 7pm on the same day.
1. Monday all day, Tuesday all day and Saturday morning only
= 10 full days per month
2. Add all day Wednesday and half day Thursday to get
fifteen days per month.
3. Full time is Monday thru Thursday, half day Saturday.
Off Friday and Sunday.
Scenario I, annual profit
$94,260
Scenario 2, annual profit
$182,160
Scenario 3, annual profit
$198,060
Confidential
3/13/2016
Location:
Salt Lake City, Utah
Number of Dunks:
Gross Income:
Bally Total Fitness Midvale
Snowbird Canyon Racquet Club
Draper Athletic Club
The Sports Club
Bally Total Fitness Parley
Bally Total Fitness Parley
Bally Total Fitness Lakewood
Lakewood Athletic Club
Club U.S.A.
Bally Total Fitness Aurora
Tree house Athletic Club
Tree house Overflow
Sports Mall
World Gym American Fork
Bally Midvale
Alta Canyon Sports Center
Gold’s Gym Orem
Dimple Dell Recreation Center
Snowbird Canyon Racquet Club
Bally Total Fitness Parley
Silver Mountain Athletic Club
Park City Racquet Club
Dimple Dell Athletic Club
14
19
12
15
42
43
12
27
18
17
28
12
14
18
16
12
14
16
22
19
17
13
12
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
15
18
21
15
$
$
$
$
$
600.00
720.00
840.00
600.00
-
12
27
13
27
18
19
12
22
37
15
27
34
$
$
$
$
$
$
$
$
$
$
$
$
480.00
1,080.00
520.00
1,080.00
720.00
760.00
480.00
880.00
1,480.00
600.00
1,080.00
1,360.00
560.00
760.00
480.00
600.00
1,680.00
1,720.00
480.00
1,080.00
720.00
680.00
1,120.00
480.00
560.00
720.00
640.00
480.00
560.00
640.00
880.00
760.00
680.00
520.00
480.00
Las Vegas, NV
Gold’s Gym Henderson
Gold’s Gym Sahara
Gold’s Gym Buffalo
Las Vegas Athletic Club Sahara
Denver Area
Bally Total Fitness Littleton
The Point Athletic Club
The Point Overflow
Lakewood Athletic Club
Colorado Athletic Club Aurora
Club U.S.A.
Club U.S.A. Overflow
Bally Total Fitness Westminster
Bally Total Fitness Galleria
World Gym
The Pulse
Colorado Athletic Club DTC
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3/13/2016
Colorado Athletic Club Inverness
Bally Total Fitness Aurora
Colorado Athletic Club Monaco
Athletic Club At Denver Place
Colorado Athletic Club Downtown
31
19
23
37
39
$
$
$
$
$
$
1,240.00
760.00
920.00
1,480.00
1,560.00
-
30
34
42
18
23
14
$
$
$
$
$
$
$
1,200.00
1,360.00
1,680.00
720.00
920.00
560.00
-
16
22
17
11
$
$
$
$
$
640.00
880.00
680.00
440.00
-
12
18
27
22
32
38
17
8
16
26
$
$
$
$
$
$
$
$
$
$
480.00
720.00
1,080.00
880.00
1,280.00
1,520.00
680.00
320.00
640.00
1,040.00
21
33
27
29
24
54
49
16
37
53
21
18
27
29
$
$
$
$
$
$
$
$
$
$
$
$
$
$
840.00
1,320.00
1,080.00
1,160.00
960.00
2,160.00
1,960.00
640.00
1,480.00
2,120.00
840.00
720.00
1,080.00
1,160.00
Colorado Mountains
Snowmass Athletic Club
Aspen CrossFit
Aspen Club and Spa
Denver Aerobic Center
Snowmass Athletic Club
Glenwood Springs Athletic Club
Colorado Springs
Bally Total Fitness North Academy
Sozo Fitness
Lynmar Racquet Club
Bally Total Fitness South Academy
Sacramento, CA
California Family Fitness Arden Blvd.
California Family Fitness Fair Oaks
Johnson’s Ranch Recreation Center
Gold’s Gym Folsom Blvd
Gold River Athletic Club
California Family Fitness Elk Grove
Willow Creek Racquet Club
Gold’s Gym Citrus Heights
Fit For Life (Placerville Ca)
American River Athletic Club
South and East Bay, California
Lady Fitness Vacaville
California Family Fitness Rockland
Capital Athletic Club
Walnut Creek Sports and Fitness
Club Sport Walnut Creek
Club Sport Pleasanton
Club Sport Freemont
Lafayette Health Club
Courtside Club Los Gatos
Oakwood Athletic Club "Lafayette"
Big C Athletic Club
Club Sport of San Ramon
PeopleSoft Corporate
Club One, San Jose
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3/13/2016
Pacific Athletic Club
34
$
1,360.00
12
18
18
15
31
24
22
18
29
27
24
16
14
12
28
18
13
32
9
11
14
29
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
480.00
720.00
720.00
600.00
1,240.00
960.00
880.00
720.00
1,160.00
1,080.00
960.00
640.00
560.00
480.00
1,120.00
720.00
520.00
1,280.00
360.00
440.00
560.00
1,160.00
27
19
23
11
21
20
27
29
13
20
$
$
$
$
$
$
$
$
$
$
1,323.00
931.00
1,127.00
539.00
1,029.00
980.00
1,323.00
1,421.00
637.00
980.00
Seattle, Washington
Gold’s Gym Bothell
Bellevue Place Club
Northwest Health and Fitness
Maple Valley Fitness
Seattle Athletic Club Downtown
The Valley Athletic Club
The Vault
Take Shape Fitness
The Centre at North Point
University Fitness
Westlake Athletic Club
Bally Total Fitness Bellevue
Bally Total Fitness Kirkland
Bally Total Fitness Bothell
Columbia Athletic Club Mill Creek
Maple Valley Fitness
Gold’s Gym Seattle
Seattle Athletic Club Northgate
Bally Total Fitness Kent
Bally Total Fitness Federal Way
Bally Total Fitness North Seattle
The Center at North Point
Chicago
A3 CrossFit
CrossFit Rise
Crossfit Beverly
CrossFit Prevail
CrossFit Enclave
CrossFit Harwood Heights
O'Hare CrossFit
CrossFit Park Ridge
CrossFit AMRAP
CrossFit 155