Thursday, February 03, 2011

Big box gyms are loosing ground to low frills, low price models.

Feb 2nd session:

TacFit joint mobility routine for 30 min. stretch bands, and form roller.

Suspension squats, dips, body wt exercise, ab wheel, GHD and Indian clubs.
Rack Dead lifts: sets of 3-5
Tacfit Kettlebell Recruit routine for 4 sets each. (balance on roman Dead lifts suck bad)
2000 meter if rowing

The New York Times newspaper came out with an article last month on the demise of the “Big box full service gym” and health clubs who are struggling to survive. They are being over taken by low price “Planet fitness” style business model with no frails workout. Now that never concerned me as I have known this long ago that only 15% of the US population has a gym membership and much less use that membership routinely or train like I do. I have a Small box, Crossfit style gym.


Motivation is almost zilch in most gyms today and the turnover each year is about 45%(industry values) that has to be recruited at a high cost to keep the business solvent. Also impacting big box fitness industry is a recession but that is more of an excuse and not always a barrier to success. Some Harvard geek, came up with a reverse business model; you pay only when you don’t go to the gym. Loss of income becomes the motivation and not fitness.


It does not take a degree from Wharton business school( I studied there for a time) to see that as a business model, if you are a midget in the market, you don’t go head to head with Cyclops. If you are offering a overpriced service in an attempt to maintain your customer base and please everyone so they stick around, you have invested poorly. Problem is the average American that goes to a fitness facility really doesn’t appreciate the juice bars, plasma TVs sound systems and Zumba classes with all the fancy trappings of a full service gym. All the fitness customer wants is some simple machines, small assortment of free weights, a shower, easy to get to, so they can work out to their interest level independently. Also for the most part the average gym customer doesn’t want to be rubbing elbows with “roid boy” so there is no need for hardcore power lifting area for a handful of “muscle heads” or “Billy Biceps” types.


The owners of Planet fitness and other low price, no frills gyms understands the public very well and offered a basic facility with machines, weights and clean rest rooms at 10-20 dollars a month. End result is high volume memberships with ever increasing new gyms all over the country. In my area there is 5 in a 30 mile radius and two other clone style low price gyms like Planet’s model. All are doing well business wise even in a recession while the full service gyms are just making it and hoping Planet fitness never existed.


Most big box full service gyms offer personal training services from either contractors or staff trainers. This is either a no cost or profit center for the gym management, but it is slowly losing its ground especially in a recession due to the high cost and low value. The Planet fitness management has discontinued the service this year on all of their gyms as it is unlightly that if you are paying 15 dollars a month for the gym membership, you will not fork over 50-75 dollars an hour for personal training…dah!


So what keeps people in any gym coming back and staying with the program? Its community, stupid! If all your friends go there, then you will go there. If you as a independent customer of a gym and you walk in to train by yourself (some like it that way but they are the exception) there is a high probably that you will not visit the gym consistently for lack of support from friends and people who share your training. My experience is that men and women that come in groups or with associates train much more consistently then those who come in by themselves. Lastly, those members who have a mission or valid, self defined reason for training will be a continuous members regardless of gym type.


Your fitness options are many; success is having friends or partners to share your pain, a comprehensive life’s plan, and wiliness to seek out the correct training, advice to make your adventure in health successful.

2 comments:

Anonymous said...

Hi there Ken, I hope you don't mind a drive-by comment. Interesting what you write here. In Taipei, where I live, the city government has built large recreational facilities in each city district - a total of 12 or so in a city of 2.5 million. (my figures could be a little off). Each facility features one of the 'small box' gyms you mention along with a pool, and various other sporting facilities depending on location. It's made quite an impact on the large gyms with their flashing lights, pushy sales people and costly sign ups. They've lost business/see that people are attracted to a no-frills service, and two of the largest have said they will be offering budget packages in recognition of customer demand.

Nice looking blog btw.

Damon

Anonymous said...

gyms you mention along with a pool, and various other sporting facilities depending on location. It's made quite an impact on the large gyms with their flashing lights,,Treadmills India