New York — The Planet Fitness $10-a-month membership plan is a powerful marketing tool and a central part of its strategy. But the largest gym chain in the United States is hiking that monthly fee for the first time in more than two decades.
Planet Fitness executives did not specify why the chain is raising the basic plan by 50% for the first time since 1998, but the move comes as higher interest rates and construction costs have slowed down new gym openings. Planet Fitness has no-frills gyms, with a basic selection of machines, no steam rooms or towels in the locker room to hold down costs. Higher costs threaten its business model — known in the fitness industry as high volume, low price, or “HVLP” — more so than luxury gyms.
Planet Fitness blared out the $10 gym plan, which includes annual fees and free training, in commercials. The company has sponsored the New Year’s Eve celebration in Times Square for years to get people thinking about signing up for memberships as their resolution. Forty percent of new Planet Fitness members have never belonged to a gym prior to signing up, according to the company.
Planet Fitness then tries to upsell these members by pushing them to its Black Card membership. The higher-priced monthly plan offers access to all of Planet Fitness’ gyms and perks like water massage beds, massage chairs and tanning equipment, and Black Card members can also bring a visitor.
Source: Healthcare Press (healthcarepress.net)
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