Club Insider

The Issue That Confuses Most Owners of Box Clubs Or Training Facilities Is Price

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Thomas PlummerThomas Plummer

Publisher's Note: Thomas Plummer shares a formula for real income increases in this time of increasing club competition. Check out this December 29th, blog reprinted with Thomas Plummer's permission.

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The issue that confuses most owners of box clubs or training facilities is price. When clubs hurt for business, the owner figures all it could be is the price, and immediately, he lowers his price believing that, once the price comes down, the memberships go up.

The low-price guys have believed this for a decade and the value chains, such as Planet Fitness, have built a company based upon price and the illusion that they exist solely for the beginner who is threatened by the bodybuilders, who don't really exist anymore anyway. Talking about dated marketing, i.e. trying to scare a consumer with a boogey man that isn't out there anymore. The low-priced guys are also now gobbling each other up like a starving jackal turning on its injured buddy. They are creating their own problems by mass copying of the same business plan by so many new players, and those problems are going to get worse for them as more and more $9 - 19 players think the number is magic.

But, what about the rest of us who don't want to charge $9 for someone to rent a treadmill and who will never get any help as a member? You can compete against anyone if you stop chasing memberships as the primary source of revenue and start thinking differently about the market and your club.

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