Terra Holayter

Application 3 Funding Sources

10/19/16

1.
One particular organization that interests me is The Front Climbing Club in Salt Lake
City. Up until a couple of years ago, this organization was a small, hole-in-the-wall
bouldering gym. With a lot of recent hard work this gym has grown into one of the
best rope-climbing gyms in the USA. It now has a pro shop, yoga studios, extensive
workout equipment, two bouldering walls, and a seventy-foot tall rope-wall.
Additionally, saunas are being built into both the mens and womens bathrooms, an
outer courtyard is under construction, and a bar is in the plans for the third floor of
the massive building. The Front Climbing Club offers yoga instructor training
courses, beginner to expert yoga classes, youth programs, personal trainers, and
climbing programs for all stages. While all of this is happening, the Front is going
green 10Mw of power is produced each year from a 7.6kw solar system (panels)
located atop the building, 100% of the clubs power consumption is offset by wind
generation electricity from the Rocky Mountain Power Blue Sky, and the Front offers
free glass recycling, not to mention the stuff they donate to kids in need around the
world. This makes the Front possibly the greenest climbing club on earth.
Through all of this, the Front is a commercial organization. Its main financial goal is
to make money for continued expansion to, again, make more money. It has the
financial goals of selling a certain amount of gear each week, generally increasing
the amount of club members, getting those club members involved in more
programs that the Front offers, and keeping members continuing in programs. The
Front also aims to make a small amount of money from fundraising from its various
events.

2.
Source of Income
Earned Income

Investment Income
Gratuitous Income

Specific Name (if

plausible)
Monthly membership
10-Punch Pass
New membership fees
Day use fee
Programs
Rental equipment
Pro Shop sales
Competition fees
Various companies*
Fundraising at
competitions

Percentage of Total
Income
50%
6%
3%
6%
10%
0.4%
15%
1%
8%
0.5%

Contractual Receipts

Parking lot food stands

0.1%
rd
3 story bar
0%
*These companies include: BlueWater Ropes, CAMP, Cilogear, Five Ten, La Sportiva,
Metolius, Organic, PETZL, Red Chili, Scarpa, So iLL, Sterling Rope, Tenaya, Trango,
Verve, and VLINE.
3.
Monthly membership This earned income comes from the fees charged every
month to every member of the club. The lowest charging price is for
members who have been with the Front for the longest - $55 per
month. The highest charging price is for newer members $79 per
month. The charging price for a couples pass is $75 per month.
10-Punch pass This earned income comes from a punch pass good for 10 uses of
the club. This is for people who may not use the gym often enough for
a monthly membership to be beneficial. This totals to $159 for a
regular pass and $189 for a pass with climbing shoe rental included.
New membership fees This source of earned income comes from an additional
charge when a new member joins the club. This totals to the monthly
charging price for that particular member (see the monthly
membership pricing above), in addition to being charged the first
month. It is much like the lay-down price for renting a new place.
Day use fee This income is earned from people who just purchase use of the gym
for one day. This totals to $22 per adult and $15 per child (under 13).
To use the yoga facility only is a charge of $15 per adult. This section is
also inclusive of the charges for nonmembers, those purchasing a dayuse pass, to get rope climbing certifications. These total to $4 for a
top-rope test and $9 for a lead climb/belay test.
Programs This earned income comes from members of the club who pay to
participate in any of the programs which the Front offers. The programs
include the after-school program, the recreation team, the competition
team, getting to 5.10, intro to bouldering, the lead belay class, yoga
workshops, yoga teacher instructor training, the Front training room,
Ascent physical therapy, and summer camps.
Rental equipment This source of income is earned from renting out climbing shoes
($6), harnesses ($3), belay devices ($2), chalk bags ($2), and lead
ropes ($9) for use within the facility.
Pro Shop sales This earned income comes directly from anyone, members,
employees, nonmembers, purchasing anything from the Front. These
items are generally limited to stickers, climbing gear, snacks, shoes,
and outdoor clothes.

Competition fees This earned income comes from charging for the participation in
a competition offered by the Front. These are one-night promotional
events, designed to fundraise and create stoke.
Various companies This investment income is earned from several different
companies which the Front invests in. The Front gains a small amount
of capital income each time these companies complete contracts with
other gyms as well as The Front Climbing Club. These companies
include BlueWater Ropes, CAMP, Cilogear, Five Ten, La Sportiva,
Metolius, Organic, PETZL, Red Chili, Scarpa, So iLL, Sterling Rope,
Tenaya, Trango, Verve, and VLINE.
Fundraising at competitions This form of gratuitous income comes from
participants of the competitions. This income is almost a break-even
because the Front gives away so much gear at competitions, but some
competitors pay for opportunity drawings as well as a give box.
Parking lot food stands Occasionally food stands park themselves outside of the
Front to sell to those using the facility or walking by. These stands pay
the Front a contractual receipt to use their parking lot, which the food
stands gladly accept since they see an increase in sales from this
location.
3rd story bar This contractual receipt is coming from the bar that is supposed to be
going up upstairs. It is currently making no progress so it is giving the
Front no income at this time.

4.
The Front Climbing Club could potentially be sponsored by PrAna. PrAna is a
recreational clothing manufacturer they specifically make clothes for yoga and
warmer climbing. These clothes fit the two major types of recreation that go on at
the Front. PrAna could sponsor the workers at the Front; they would wear PrAna
gear. This would lead to PrAna gaining more publicity from users of the club as
effective climbing and yoga wear. People in general would consider buying PrAna
gear because they see it being used, which would help PrAna. Workers at the Front
would gain the benefit of having more gear gear that they can use in and out of
the gym, on warmer days. If directly giving gear to the workers is too much of an
expense for PrAna, they could offer their already expensive, yet high quality, gear at
a discounted, Pro Deal price. As with nearly any huge discounted and useful gear,
the workers would be stoked and they would undoubtedly want to buy more PrAna
gear, additionally helping out PrAna. This sponsorship would help out all of the
workers at the Front, from the owner to the office workers to the climbing workers,
everyone at the Front is outdoorsy and would be interested in PrAna.

All of this information was speculated or gathered from workers at the Front or on
the Front website: http://frontslc.com/ws/