That means if you only use your facility membership a few times a year (or never!), you're effectively subsidizing the hardcore gym rats, like the people who wear down the rowing machines and use up all the lemongrass-scented shampoo. Click here to download CBC Radio's business and economics show Cost of Living to your podcast player of choice, or find us on the new CBC Listen app.Īdd in that gyms are typically open 18 to 24 hours a day and you have a very expensive business model that becomes difficult to sustain if everyone is taking advantage to the maximum extent.They require a lot of space, a lot of equipment, a lot of staff, and a lot of towels! Pasta and bread eaters - those who consume less, or the cheaper items, and cost the business less money - end up subsidizing the folks who hover over the more expensive oyster table.Īnd just like restaurants, gyms are notoriously expensive to operate. In other words, running a gym is a lot like holding a buffet. You hope that they set it, and forget it." The gym and the buffet aren't so different "So it's in the interest of the organization to sell as many subscriptions as possible. "If you think about the traditional gym model, they have limited stuff, limited equipment, limited space and people are paying whether they use it or not," said Robbie Kellman Baxter, marketing consultant and author of The Membership Economy. You hope that they set it, and forget it. It's in the interest of the organization to sell as many subscriptions as possible. Historically, many fitness clubs would rely on a portion of customers rarely using their memberships while still paying for them. January, with all its New Year's resolutions, is easily the most important month for gyms.īut faced with increasing competition in the fitness industry, many gyms are moving away from a longstanding but sometimes controversial business practice.
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