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The Interesting State Of The Gym and Health Club Industry
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Every once in a while, a trend comes around that completely changes and industry.
The health club industry -- the entire diet and fitness industry for that matter -- has
always been inherently based on failure. If it wasn't, there would be no $10/month
membership programs.
In fact, all memberships would have to be $50/mo and more just for the club to survive.
It's a known fact that the average usage rate for health clubs hovers around 40%. This
means that 40% of health club members have used the club at least once in the past
month... at least one time.
The invention of auto-billing further complicates this fact. Most people notoriously
negligect their checking accounts. If they aren't physically writing the checks, the
money is "out of site, out of mind".
Their is no real financial lever to help people use the gym more often. This is even more
prevelent in clubs with lower due.
Before, fitness clubs would promise the world and under-deliver.
Now, there is a stark division taking place as everyone is choosing sides:
On top of that, the memberships are spreading as far as possible from $40/mo. Many
of the major players are opting for the "no service", low cost model.
Others, are increasing their service levels as well as their corresponding dues. The
secret to great health club management isn't hard. Just care about your members.
Much more to come...
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Recommended Resources:
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