Members of low-cost gyms are unlikely to drop out due to not being able to afford the membership fee. We know that gym memberships are often canceled when members experience low engagement, lack motivation, or insufficient funds to continue with the membership. Without this regular interaction to keep members engaged, retention rates start to become a problem. However, for the operators themselves the lack of contact makes it difficult to build the relationship. This suits certain members, and most low-cost gym members recognize that low membership fees also mean compromise. ![]() These cost savings can then be passed on to the consumer through attractively low membership fees. Since low-cost gym facilities depend on a low-manpower business model, they observe substantially lower recurring operational costs than traditional gyms, which depend heavily on staff members being present on-site. International gym giant Anytime Fitness provides members with electronic key fobs for around-the-clock access. No cafe, in-gym store, or even a front desk to welcome members means members can come and go without speaking to a member of staff.įor example, the UK’s largest low-cost gym chain, PureGym, has an access system in which each member has a unique PIN code, allowing access 24/7. Low costs, low manpower, low membership retentionĭespite the continued success of this low-cost, no-frills approach to fitness centers, it is not without its challenges.īy removing the ‘human’ elements from the gym to maximize fitness space, the amount of human interaction drops. However, the characteristics that make low-cost gyms so successful also create unique challenges regarding membership retention. (2017) discovered that many low-cost gyms shared multiple characteristics, like running on very little manpower and offering a “gym-only proposition”. To put that in more tangible terms, according to Statista, in 2018 low-cost gym memberships exceeded 2.5 million compared to 200,000 in 2011.īesides cheap membership rates, low-cost gyms often share more than one common characteristic. In 2015, the number of members at “budget club(s)” grew by 69%, while the growth rate of “mid-market clubs” stagnated.Īs of June 2017, there were more than 500 low-cost gyms in the United Kingdom alone, accounting for an estimated 35% of all gym memberships, and offering membership rates from as low as £8.99 per month. Low-cost gyms are dominating the fitness industry.
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