Decision 1
Define what you are calculating
Separate three questions: the cost of keeping the system available for a day, the cost of one chamber cycle and the cost per paying client. They are not interchangeable, especially when one cycle can serve several people.
Base all three on a real day: start-up, ready time, operating hours, planned cycles, average users per cycle, breaks and shutdown. Then classify every cost so that start-up, utilities, labour, service, facilities, downtime and financing are not mixed or omitted.
In-depth detailsCalculation units, operating schedule and cost categories
Original article introduction
The lowest utility cost is not always the lowest operating cost
When comparing cryotherapy systems, buyers often focus on one number: the cost of liquid nitrogen or the electricity consumed by the refrigeration system.
That number matters, but it does not represent the full cost of operating the service.
A nitrogen system may have a visible consumable cost attached to every operating day. An electric system may appear more predictable because it uses power from the building. In practice, both technologies create a combination of variable costs, fixed costs and infrastructure-related expenses.
The real operating cost depends on how the equipment is used, not only on how it is cooled.
A chamber operating continuously in a busy sports facility will produce a different cost profile from the same technology used for a few appointments each day. A multi-person system filled with groups will produce a different cost per client from one used mainly by individuals.
The purpose of a cost model is therefore not to produce one universal figure. It is to show how the selected system behaves under the conditions of a specific business.
Start by separating three different calculations
Operating-cost discussions become confusing because several different questions are often treated as if they were the same.
A facility may want to know how much it costs to keep the system available for one day, how much one completed session costs, or how much the service costs per paying client.
These values are not interchangeable. A four-person chamber may complete one technical session while serving four clients. A single-person chamber needs four separate session cycles to serve the same number of people.
A useful analysis should calculate both cost per chamber session and cost per paying client, as the second figure is usually more useful commercially.
Build the model around a real operating day
The most reliable calculations begin with a defined schedule.
Instead of asking how much the system costs "per session" in theory, describe a normal operating day: when the equipment is started, how long it takes to become ready, how many hours it remains available, how many sessions are planned, how many clients attend each session, whether the system stays active during breaks, and when shutdown procedures begin.
This reveals costs that disappear from simplified marketing calculations.
For example, an electric chamber may consume significant energy before the first client arrives. A nitrogen chamber may require nitrogen to cool the chamber before the first paid session begins. If those start-up costs are divided across only a few clients, the cost per client will be higher.
The same system may become more cost-efficient when daily utilisation increases because its initial preparation cost is spread across more sessions.
The main cost categories
A complete model should distinguish between costs that change with usage and costs that remain relatively stable.
Cost categories include: start-up and readiness, session-related utilities, labour, maintenance, facility, support, downtime, and financing and depreciation.
Not every cost applies equally to every project. The purpose of separating them is to prevent major categories from being ignored.
Decision 2
Compare nitrogen and electric resources fairly
For nitrogen, use a local delivered-price proposal that includes expected consumption, start-up and standby use, tank rental, delivery terms and supplier fees. For electric, use the applicable commercial tariff and include cool-down, temperature maintenance, sessions and auxiliary equipment.
In-depth detailsNitrogen and electricity operating resources
Calculating the cost of a nitrogen system
The operating cost of a nitrogen chamber depends heavily on the commercial terms offered by the local gas supplier.
The price per litre is important, but it is only one part of the supply cost. A contract may also include tank rental, delivery charges, minimum order volumes, pressure-management fees or charges linked to delivery frequency.
A realistic monthly nitrogen cost depends on total nitrogen consumption multiplied by delivered nitrogen price, plus tank rental, delivery charges and other supplier fees.
The "delivered nitrogen price" should come from an actual supplier quotation for the installation location. A generic international average is not sufficiently reliable for investment planning.
Some nitrogen is used before the first paying client enters the chamber. Additional consumption may occur while the chamber remains ready between sessions. This creates a daily base cost.
The storage system can also materially affect the total cost. A large external tank may offer more stable supply for a busy facility, but it can introduce rental and installation costs. Lower-volume arrangements may require less infrastructure but more frequent deliveries.
The correct comparison is the total monthly cost of having usable nitrogen available at the chamber under the expected operating schedule.
Calculating the cost of an electric system
An electric chamber replaces routine nitrogen deliveries with a refrigeration system powered by electricity.
Its cost model should include more than the nominal electrical rating. The monthly energy calculation should consider energy used during cool-down, while maintaining temperature, during sessions, and by auxiliary equipment like pumps, fans, chillers or ventilation.
The result should be calculated using the actual commercial electricity tariff applicable to the site. The effective price may differ from the visible energy rate because the operator may pay network charges, capacity-related charges or peak-demand costs.
An electric chamber may require a defined period to reach operating conditions. The energy used during this stage should be spread across the sessions performed that day. Starting the system for only a small number of clients may produce a higher cost per client than operating it across a longer, well-booked schedule.
A facility should compare at least two schedules: a full-day operating model and a limited-block operating model.
The heat removed from the chamber must be transferred elsewhere. Depending on the design, this may require a chiller, condenser, cooling-water circuit, pumps or building HVAC support. These systems create additional costs through electrical consumption, water treatment, maintenance and replacement of pumps or fans.
Decision 3
Model labour and actual occupancy
Operator time can matter more than the visible utility cost. Include screening, explanation, clothing checks, supervision, documentation and turnover using the full employment cost of the time assigned to cryotherapy.
For multi-person chambers, divide cycle costs by realistic average occupancy, not maximum capacity. A group system can be highly efficient when several paying clients attend together and disappointing when most cycles carry one person.
In-depth detailsStaffing cost and cost per paying client
Staffing is often larger than the utility cost
The most visible operating expense is not always the largest one.
A cryotherapy session requires more than activating the chamber. The operator may need to welcome the client, confirm screening, explain preparation, check clothing, supervise the session and prepare for the next user.
A useful labour calculation is total operator hours assigned to cryotherapy multiplied by full hourly employment cost. The full employment cost may include salary, employer contributions, paid breaks and training time.
Where the operator performs other duties between sessions, only the appropriate proportion should be allocated to cryotherapy. The assumption should still be realistic.
Chamber capacity changes the cost per client
A session and a client are not always the same unit.
For a single-person chamber, one completed session equals maximum one client. For a four-person chamber, one completed session equals between one and four clients.
The cost per client in a multi-person chamber therefore depends on occupancy. A session with an operating cost of X becomes cost per client of X when one client attends, or X divided by 4 when four paying clients attend.
This is why a multi-person system can become highly efficient in a team or group setting. It is also why its economics may disappoint when most sessions serve only one person.
The model should use average actual occupancy rather than maximum capacity.
Decision 4
Allow for maintenance, service and downtime
Convert expected annual maintenance and longer-term component replacement into a monthly provision. Use the service model actually available at the installation location, including technician travel, shipping, customs, diagnostic time and remote support where relevant.
Add a transparent downtime allowance based on contribution at risk during expected unavailable days. Include ongoing facility-system expenses such as ventilation and monitoring, heat rejection, pumps, water treatment or added HVAC load where applicable.
In-depth detailsMaintenance, service, downtime and facility-system expenses
Maintenance should be converted into a monthly provision
Service costs do not occur evenly every month, but they still belong in the operating model.
Planned maintenance may include sensor verification, inspection of seals, ventilation service, refrigeration service, filters cleaning, valve inspection, electrical testing and software support.
Instead of ignoring annual costs until they occur, convert them into a monthly provision: expected annual maintenance cost divided by 12 equals monthly maintenance provision.
The same principle can be applied to components expected to require replacement after several years.
Spare parts and service travel
A maintenance figure should reflect the actual service model available at the installation location.
If the equipment can be supported by a trained local technician using documented components, service travel may be limited. If every intervention requires an international engineer, travel and response time may become significant.
The model should consider travel and accommodation, technician labour, diagnostic time, shipping of replacement parts, customs and import delays, and remote-support charges.
Downtime has a commercial cost
Downtime is often excluded because it is difficult to predict. For a revenue-generating facility, ignoring it is unrealistic.
The direct cost of downtime may include service and parts. The commercial cost may be larger through cancelled sessions, refunds, rescheduling, staff time without revenue and reputational damage.
A simple downtime estimate can be calculated as average daily contribution from cryotherapy multiplied by expected unavailable days.
This should not be presented as a guaranteed annual cost. It is a risk allowance used to compare service strategies.
Room infrastructure creates operating expenses
Site preparation is usually treated as an investment cost, but some infrastructure continues to create monthly expenses.
Examples include mechanical ventilation, oxygen-monitoring maintenance, tank rental, chiller or condenser operation, HVAC load, pump energy, water treatment and inspections required by local regulations.
These costs should be allocated to the cryotherapy service where they exist because the facility would not otherwise incur them.
For shared building systems, use a reasonable proportion rather than assigning the entire building cost to the chamber.
Decision 5
Keep investment separate and test profitability
Show initial project investment separately from recurring operation. Chamber purchase, construction, utility upgrades and installation answer a different question from monthly nitrogen, electricity, staffing, maintenance and support.
A low technical cycle cost does not prove profitability. Use realistic net revenue, discounts, occupancy and variable costs to estimate contribution per client and the number of paying clients needed to cover assigned monthly fixed costs.
In-depth detailsInvestment boundaries, contribution and break-even
Separate operating cost from investment cost
A clear financial model should not mix monthly operation with the initial project investment.
Initial investment may include chamber purchase, transport, installation, room construction, electrical upgrade, ventilation, nitrogen storage, chiller or heat-rejection equipment, design and permits, initial training and contingency.
Operating cost may include nitrogen or electricity, labour, maintenance, calibration, tank or equipment rental, facility utilities, service support, consumables and downtime allowance.
Both categories matter, but they answer different questions.
Cost per session is not the same as profitability
A low technical cost per session does not automatically create a profitable service.
Profitability also depends on session price, discounts and packages, occupancy, customer-acquisition cost, rent, staffing, tax, financing and demand consistency.
A basic contribution calculation is average net revenue per client minus variable cost per client equals contribution per client. Then monthly fixed costs divided by contribution per client equals break-even clients per month.
This shows how many paying clients are required before the service covers its assigned monthly operating costs.
Revenue should be entered net of discounts, refunds and applicable sales taxes. Using the public list price for every session will normally overstate the result.
Decision 6
Stress-test the assumptions
Build conservative, expected and high-utilisation scenarios, then change one important assumption at a time. Useful tests include clients per day, average group occupancy, operating hours, utility prices, staffing, maintenance, downtime and cool-down time.
This exposes which inputs drive the decision and prevents common errors such as using full capacity as expected sales, ignoring start-up and standby, or comparing incomplete nitrogen and electricity prices.
In-depth detailsUtilisation scenarios, sensitivity and calculation errors
Use three utilisation scenarios
A single forecast creates false precision.
A safer model uses at least three scenarios: conservative utilisation representing slower demand and lower occupancy, expected utilisation based on existing data and research, and high utilisation showing the benefit of a well-used system.
The cost per client will usually fall as utilisation rises, but not every cost remains fixed. Additional sessions may require more labour, nitrogen, energy and maintenance.
Sensitivity analysis reveals what really matters
After building the base model, change one assumption at a time.
The most useful variables are usually clients per day, average users per multi-person session, nitrogen price, electricity price, operating hours, staff cost, session price, maintenance provision, downtime and cool-down time.
The purpose is to identify which assumptions have the greatest influence on the result.
For many facilities, utilisation affects the business case more strongly than a modest difference in energy or nitrogen price.
Avoid these common calculation errors
One common mistake is dividing session-only consumption by the maximum number of users while ignoring cool-down, standby and partial occupancy.
Another is comparing delivered nitrogen cost with the basic electricity tariff while excluding delivery fees on one side and cooling infrastructure on the other.
Labour is also frequently omitted because an existing employee is expected to manage the service. That employee's time still has value.
Maintenance is sometimes excluded from electric systems or exaggerated for nitrogen systems. Both technologies need maintenance.
The final common mistake is using maximum daily capacity as expected daily sales. Technical capacity describes what the equipment can support. It does not prove that the market will fill every available place.
Decision 7
Collect the inputs for a project decision
Ask the supplier for model-specific start-up, consumption, standby, auxiliary-equipment, maintenance and service assumptions. Obtain local nitrogen proposals, electricity tariffs, labour and construction costs, service rates, pricing and demand evidence from the project team.
The useful question is not simply which technology is cheaper. It is which system produces the strongest result under your local conditions and expected utilisation, with every assumption visible.
In-depth detailsSupplier data, local inputs and the complete cost conclusion
Information to request from the equipment supplier
A useful quotation should provide enough information to build a transparent cost model.
Request model-specific data covering start-up requirements, typical consumption under defined conditions, standby or readiness operation, auxiliary equipment, recommended operating schedule, planned maintenance, expected wear components, utility interfaces, service availability and assumptions used in any cost-per-session estimate.
The supplier should explain the conditions behind the figures. Consumption measured during one fully booked operating day should not be presented as a universal cost for every facility.
Information to obtain locally
The manufacturer cannot provide every input.
The project team should obtain a written nitrogen proposal, the applicable electricity tariff, labour costs, room and construction costs, local service rates, financing conditions, insurance costs, realistic local session pricing and demand estimates.
Combining model-specific technical information with local commercial information produces a much stronger result than relying on industry averages.
A better question than "Which technology is cheaper?"
The cost comparison between nitrogen and electric systems is often framed too narrowly.
The better question is: Which system produces the strongest operating result under our actual local conditions and expected utilisation?
A nitrogen system may offer a favourable cost profile in a region with competitive supply and high group occupancy. An electric system may be stronger where nitrogen logistics are difficult and the facility has suitable electrical infrastructure.
The answer may also change with operating volume.
Conclusion
The real operating cost of a cryotherapy system is not a single utility figure.
It is the combined cost of preparing the equipment, keeping it available, completing sessions, staffing the service, maintaining the installation and managing periods when the system cannot generate revenue.
A credible calculation should distinguish between cost per day, cost per chamber session and cost per paying client. It should use actual local prices, realistic occupancy and several utilisation scenarios.
Most importantly, it should make every assumption visible.
That approach may produce a less dramatic result than a marketing calculator based on full capacity, but it gives the operator something more valuable: a financial model that can support a real investment decision.
At AZT, operating-cost discussions are based on the selected system, facility conditions and planned usage. This allows nitrogen and electric solutions to be compared using the same commercial logic rather than unrelated headline figures.
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