Gyms regularly replace old, worn out equipment with new models. This raises the question – what happens to the old equipment that gets replaced? There are several common practices that gyms use to get rid of old exercise machines, weights, and other gear.
Page Contents
Selling to Used Equipment Dealers
One of the most common ways for gyms to unload old equipment is by selling it to used fitness equipment dealers. There is a thriving market for buying and selling lightly used commercial grade workout machines. Dealers will come to the gym, assess the quality of the equipment, and make an offer to purchase the items they are interested in.
This option allows gyms to recoup some of the cost of the original equipment purchase. While used exercise machines sell for a fraction of their original price, gyms can still get hundreds or thousands of dollars back by selling to used equipment companies. This helps offset the expense of buying brand new replacement gear.
Used equipment dealers will refurbish the machines they purchase, replacing worn parts and giving them a deep cleaning. The equipment is then resold to gyms looking to buy quality gear at a discounted price, to individuals for home gyms, or to startup fitness centers trying to keep their costs low.
Benefits of Selling to Used Equipment Dealers
- Makes back some of the original equipment cost
- Avoids hassles of selling individually
- Dealers handle all transportation
Donating to Schools and Non-profits
Another option is for gyms to donate used fitness equipment to schools, community centers, churches, Boys & Girls Clubs, YMCAs, and other non-profit organizations. With tight budgets, these kinds of establishments often appreciateFitness related non-profits that offer free or low-cost services are also happy recipients of donated gym equipment.
Donating used exercise gear provides some key benefits:
- Tax write-off – Donations to 501(c)(3) non-profits can be deducted from taxes
- Good publicity – Donating equipment is great community outreach and PR for the gym
- Helps a good cause – Allows schools, charities, etc. to get quality equipment they otherwise couldn’t afford
The types of equipment commonly donated include:
- Treadmills
- Ellipticals
- Exercise bicycles
- Weight machines
- Dumbbells
- Weight benches
- Weight racks
- Aerobic steps
Donated equipment does need to be in good working order. Anything that is mechanically unsafe or too deteriorated would not make a suitable donation.
Selling Directly to Gym Members
Rather than going through a used equipment dealer, some gyms opt to sell directly to their members. This can be done several ways:
Host a Used Equipment Sale
The gym can advertise a used equipment sale day where members can come and purchase the older machines. This works best for smaller items like weights, benches, mats, balance balls, bands, etc. The gym may want to auction off more valuable items like treadmills and weight machines.
Sell Online
The gym can advertise the used exercise equipment on platforms like Craigslist, Facebook Marketplace, OfferUp, or their own website. Interested members would then coordinate picking up and hauling away anything they purchase.
Monthly Newsletter Listings
A regular gym newsletter that goes out to members is a great place to list used gear for sale. The listings can include important info like model, condition, age, price, and who to contact about purchasing.
Selling directly to gym members allows the facility to pocket more of the sale price. However, it also requires more time and effort to organize, advertise, and manage all the transactions.
Scrapping Metal Components
For strength training machines with significant metal parts, some gyms will dismantle the equipment and scrap the metal. Weights, pulleys, benches, and other metal components can be removed and sold to metal recycling centers.
While this generates a bit of extra revenue from the metal itself, the main incentive is avoiding expensive haul away fees. Once stripped to the frame, the remaining plastic and wood pieces take up much less space and are easier to transport.
Before deciding to scrap used exercise machines, gyms should make sure they fully own the equipment. Leased gear would need to be returned per the contractual terms.
Outright Disposal
If selling or donating the used equipment is not practical, the last resort is disposal. Typically the gym contracts a waste management company to come remove and properly dispose of the old machines.
Reasons a gym may need to dispose of equipment include:
- Equipment is broken beyond repair and unsafe to use
- Cost of removing and transporting is too high
- No interested buyers or donors
- Storage space lacking until equipment can be sold/donated
Proper disposal keeps old equipment from becoming safety hazards or eyesores if left sitting unused at the gym. Environmental regulations prohibit leaving junk equipment sitting in the open or tossing it in the trash.
Tax Implications
There can be tax considerations to how gyms dispose of used exercise equipment:
- Sales tax may need to be collected and remitted on any used equipment sold directly to members
- Sales to equipment resellers require a resale certificate
- Donations may qualify for tax deductions if given to a registered 501(c)(3) non-profit
- Written appraisals help establish fair value for deduction amount
- Disposal costs may be deductible as operating expenses
Gyms should consult with their tax advisor to ensure they follow all IRS rules and receive applicable deductions on any equipment sold, donated or disposed of.
Repurposing Equipment
Sometimes gyms get creative with ways to repurpose old exercise equipment. This avoids sending it to the landfill while getting additional use out of the machines.
Ideas for repurposing include:
- Using circuit training machines for resistance bands instead of weights
- Turning stationary bikes into desk bikes for office workers
- Using old aerobic steps as plyometric boxes
- Turning treadmills into under desk walking workstations
Repurposed equipment can work well for lower intensity training, warm ups, cool downs, and recovery exercises. Gyms should thoroughly inspect gear to ensure it is safe for repurposed use.
Selling to Employees
Gyms will sometimes offer used equipment to employees before making it widely available. This can be at a deeply discounted price or free if the items are older. Benefits of this approach include:
- Saves employees money outfitting a home gym
- Lets employees test and trial equipment
- Builds goodwill with staff
- Easier logistics with employees hauling items themselves
Doing an internal sale first requires clearly communicating to employees which items are available and the pricing. Items not claimed by employees can then be sold or donated externally.
Trade In for New Equipment
Some equipment manufacturers and distributors will offer a trade-in credit on old gear when purchasing new models. This provides gyms a couple different advantages:
- Convenience of seamless equipment swap process
- Potentially higher value than selling independently
- Avoid costs and hassles of moving old equipment
Trade-in values depend on the age and condition of the equipment. Highly functional commercial grade machines typically get better value. Trade-ins make the most sense when replacing older equipment with significant remaining useful life.
Leasing Equipment
An option to avoid dealing with disposal of used gear entirely is leasing instead of purchasing equipment. With a lease, the equipment financing company remains the legal owner of the gear.
Once the initial lease term is up, options include:
- Returning equipment per lease return conditions
- Continuing to lease the used equipment at a lower cost
- Purchasing leased equipment at fair market value
Leasing shifts the risks and hassles of equipment disposal to the leasing company. It also keeps gym costs more consistent by bundling equipment acquisition and disposal terms into the lease payments.
Conclusion
Gyms utilize a variety of options when replacing worn out and outdated fitness equipment. While disposal or recycling is sometimes necessary, most gyms make an effort to continue deriving value from old exercise machines.
Selling to used equipment dealers or directly to members, donating to community organizations, and repurposing for alternative uses are common ways gyms extend the usable lifespan of fitness gear. This saves money, reduces waste, and supports community-building goals.