Planet Fitness will raise the cost of its basic membership plan for the first time in 26 years. Since 1998, the “classic” subscription option cost $10 per month. Now new users can purchase the no-frills membership option for $15 per month. This equals to a 50% increase in the basic plan. Moreover, the “classic” membership provides access to a single location. On the other hand, the Planet Fitness $25 monthly “Black Club” membership offers extra location access and benefits. The good news is that at the moment the increases will not affect any additional plans. However, management personnel have suggested that they may begin exploring higher costs for the remaining packages.
Also, it is important to mentioned that the new membership fee will only apply to new members who joined the gym after the prices go into effect. CFO Thomas Fitzgerald said:
Current, Classic Card members will continue to pay $10 for the duration of their membership.
Furthermore, the company has not clearly stated why they are boosting their fees, but it is known that the increases came after higher interest rates and construction costs have slowed down new gym openings.
Also, Planet Fitness is a no-frills gym. Meaning, to reduce costs, the business offers only a limited variety of machines and does not provide steam rooms or locker room towels. Their main goal is to focus on the fitness component, stressing affordability and accessibility over luxury.
For this reason increasing the costs on their plans can have a significant influence on their business model, which is recognized in the fitness industry as “high volume, low price.”
Cheap and Sweet
Planet Fitness has for years advertised, supported, and emphasized its $10 gym membership. A plan that charged both annual fees and provided free training sessions. For years, the corporation has even sponsored the New Year’s Eve event in Times Square to attract attention and get people thinking about signing up for a membership as a resolution. A “tradition” that has been effective, as forty percent of new Planet Fitness members had never belonged to a gym before signing up.
Furthermore, the workout plan was priced just right in the sweet spot: cheap enough to entice people to Planet workout who wanted to get in shape, but not so high that they would cancel if they didn’t go frequently. It is safe to assume that this plan was a good deal, and one that many individuals look for. Their mix of advertising and inexpensive cost has enticed many individuals to sign up, so removing this plan will be devastating.
Loosing a Deal
Also, the high prices have astonished many people. This is because despite the fact that numerous businesses across the country have hiked their pricing since the pandemic began in 2020. Planet Fitness’ $10 cost was one of the only items that remained consistent because it was identified with the brand.
“It’s a ‘get you off the couch’ price,” Planet Fitness’ former CEO told CNN in 2022.
In addition, not only was the plan synonymous with the brand, but Planet Fitness had long exploited the $10 basic membership to attract those who wanted to exercise but had never joined a gym before, were intimidated by fitness fanatics at other gyms, or could not afford more expensive clubs. To understand why Planet Fitness’ prices have traditionally been among the most cheap, consider that a gym membership in the United States typically costs around $50 per month.
Additionally, many boutique gyms and high-intensity classes charge double or triple that amount. So, certainly, a 50% price rise is startling because it has been a part of the company for years, and many people are familiar with and adapted to this plan. However, at the end of the day, price increases are to be expected.
The End of an Decade
Moreover, despite the fact that it appears to be an odd time to boost the classic card’s price by 50%. Because of inflation, and shoppers are now looking for deals. Planet Fitness executives stated that customers have become accustomed to price increases and that the decision will not harm the company. Planet Fitness interim CEO Craig Benson said:
We’ve seen in every industry people move in price. So, it is not going to come as a shock to anybody that we are moving a price that’s been in effect for a long, long time.
Overall, it’s painful that a great deal is coming to an end. Regardless, Customers can still sign up for the other additional plans for the same pricing, and hopefully these fees do not come to an end soon.
Written by Nohemi Sanchez
CNN: Planet Fitness will raise its $10 membership plan for the first time in 26 years
Fox 8: Planet Fitness to hike prices for first time in decades
Fox Business: Planet Fitness to increase membership fee for the first time in nearly 30 years
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