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How Gyms Make Money (2015)

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Re: How Gyms Make Money (2015)

#51
post #21

There’s also tricks like requiring certified letters to cancel the membership. One I went to required two. You also paid a fee upfront that was like being there for half a year.

I prepay my membership up front so I don't get stuck in some recurring system. 6 month terms are the way to go.

I prepay as well, I pay for a year as it's the best deal but there's no contract/automatic renewal. Independent gym.

Re: How Gyms Make Money (2015)

#52
post #49
post #22

"The founder of Colman’s Mustard used to claim that his fortune was based on the bit of mustard that everyone left behind on their plate" Wow.

I haven't read the article but the move to squeezy ketchup bottles was because parents didn't like kids messing with the glass bottles, and kids were the ones who would dump a load of unused ketchup on their plates meaning parents would buy more.

The squeezy bottles are annoying because they are opaque and I'm sure a ton of wasted mustard, ketchup etc are being thrown in the trash compared to glass. The Dutch have the flessenlikker but most Americans don't.

Re: How Gyms Make Money (2015)

#54

The best thing I ever did was invest in some quality gym equipment at home. I have a power rack, tons of weights, bars, etc. treadmill, TVs, speakers, whatever. Never going back to a gym again.

I agree except for some specialized equipment I wanted to use for PT on my arm. Apart from that I do better at home.

But I think for some people it’s possible that the payment itself acts as a spur to exercise (I’m paying for it so I’d better use it). Of course the gym owners are counting on this not being true!

Also I just want general fitness, health, and ability to do specific things I want (bike/swim/kayak/backpack/ski), which means bodyweight exercising (including TRX) and hand weights are 95% of what I need -- most of the gym equipment is great but unnecessary to me (YMMV)

Re: How Gyms Make Money (2015)

#55
post #37

Earlier quoted context omitted.

There are a few gyms that let you cancel online. If you know of any other chains that require certified mail/hard to cancel requirements let me know. I recently had to add a signature feature to my app for Retro Fitness! # Require certified mail (100% sure on these) - LA Fitness - Planet Fitness - Gold's Gym - Retro Fitness # Let you cancel online / do not require in person or certified mail (From memory based on my…

Orange theory requires in person (at least my franchise does.)

Huh. Their website says you can send them an email.

I guess it could take a lot of legwork to figure out what individual franchises allow.

https://memberservices20.zendesk.com/hc/en-us/articles/36004...

Re: How Gyms Make Money (2015)

#57

Earlier quoted context omitted.

Popularity is an anti feature at the gym. Working adults have limited windows to workout and so once a gym gets affordable like 24hr fitness where seasonal sales at Costco make it VERY cheap it becomes a gym you might not actually want to work out in. Then you have the whole gym owner archetype which I won’t dive into but IMO exasperates the issue.

Mega-gyms are pretty terrible. I've never been to a 24 Hour Fitness, LA Fitness, or Gold's Gym that wasn't a sea of equipment hoggers, broken machines, random dirty towels, occupied lockers, and screens with CNN or daytime TV on. What's even more strange is how willing people are to pay hundreds or thousands of dollars for an Equinox membership. The rationale is that paying that much upfront keeps you motivated to ma…

I used the equinox next door to the office for a while because it was next door to the office (and membership was subsidized). It seemed that the customer base was fit people between 30 and 45. Being outside that demographic meant I didn’t have to interact with the other customers, which to me was a feature.

Re: How Gyms Make Money (2015)

#59
> a gym customer needs quite a bit more space compared to the retail customers in the rest of the high street

You can tell this also when you look through a shop window, say of a woman’s clothing shop. The more free space (wider aisles, fewer goods on display) the higher the prices since the sales of fewer items have to cover the rent. Conversely it’s why dollar stores tend to have narrow, jammed aisles.

Re: How Gyms Make Money (2015)

#60
post #41

Earlier quoted context omitted.

>I'm probably the worst customer for gyms [...] I get there at 430 no that's the best customer for gyms. The ACTUAL way gyms make money is by heavily over subscribing a fixed amount of resources (machines/benches/space). You finding some random time to go to the gym instead of just canceling has barely any marginal cost over some one just not going and you'll talk positively about having a membership.

I guess the most economically efficient model would be for gyms to charge per use with surge pricing. 4-5am? $2. 5-6pm? $10!

From the article: "There are many commercial gyms that won’t let you in on a ‘pay-as- you-go’ basis at all, even if you beg."
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