News, Insights and Stories from the Australian and New Zealand tech ecosystem.

Fat profits from skinny clients.

In 2005, two Sydney sisters, Ariana and Anthea Hendry, became increasingly disgruntled about going to the gym. However, they realised that there were limited alternative weight loss services available to Australian men and women. Then they discovered HYPOXI – hailed by the European media as one of “the most successful targeted fat loss and cellulite reduction treatments to come on the market” (SHE Magazine, UK).

At the age of 26 and 23 respectively, Ariana and Anthea recognised the potential for HYPOXI in the Australian market and they swiftly set about securing the exclusive distribution rights for the product in Australia and New Zealand. The first HYPOXI studio opened on studio in 2006 on a shoestring budget of $100K in an effort to demonstrate the efficiency and financial viability of the product. As clients began to use the machines with phenomenal results, the Hendry sisters recovered their start up capital in the first 6 months of operation and HYPOXI’s reputation as a credible weight loss solution began to spread.

Now, just 5 years on from opening the first studio, HYPOXI’s network has grown to over 43 nationally, with more people putting their money behind this simple business model. HYPOXI’s success as a holistic weight loss concept is largely due to the fact that women and men are now looking for discreet, caring environments where internal wellbeing is just as important as the physical results. HYPOXI offers such a service.

The Success behind the HYPOXI model:

The current obesity crisis is causing dramatic growth in the weight loss industry. Statistics show that more than half of all Australian women (52%) and two thirds of men (67%) are overweight. Even more interesting is the proposition that 80% of women and 52% of men are dissatisfied with their body. This crisis is causing both the media and public to focus more attention on the weight loss industry and all of its offerings.

Setting up a Hypoxi studio or treatment area in an existing business requires a small start up investment – with Hypoxi machine prices starting from just $37, 990 (ex GST).

HYPOXI clients are charged on a per treatment basis, with the RRP for one half hour session costing $69 and a course of twelve retailing for $690.

HYPOXI offers attractive leasing options for all machines, starting from as little as $31.85 a day (less than half the price of one session).

The returns on each machine are high if operated correctly – just 1 unit operating at 75% utility (11 treatments per day) will turn over $211,149.18 annually which calculates to 441.55% ROI.

There are very low operational costs associated with running a HYPOXI studio – there are no ongoing consumable costs and the machines do not require highly skilled labour to administer the treatment – this sets it apart from other passive weight loss treatments in the market.

HYPOXI offers excellent training and ongoing support. This is attracting many investors who have no pre-existing experience in the fitness/weight loss industry.

HYPOXI is not a franchise, so there are no costly ongoing royalties to Hypoxi Australia and operators have the flexibility to develop their studio in the manner that suits them.


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