Planet Fitness’s $10 membership is one of its biggest marketing tools and has been getting people to come in for years. But this is all set to change very soon. The largest gym chain in the United States has decided to finally hike up its monthly fee for the first time in two decades.
Planet Fitness will be raising its classic membership price from $10 to $15 for any new members who join at the beginning of this summer.
This membership gives the members access to one location of Planet Fitness. You need to get a bit more expensive membership if you plan to get access to more than one location. For example, the Clac Club membership gives you access to more locations for $25 only.
Executives at Planet Fitness did not give the media any comments as to why they decided to raise the prices all of a sudden, but the move comes right as interest rates and construction costs have slowed down new gym openings.
Planet Fitness has no-frills gyms, with a basic selection of machines, no steam rooms, or towels in the locker room to hold down costs. Higher costs threaten its business model—known in the fitness industry as high volume, low price, or “HVLP”—more so than luxury gyms.
The company has long been using the $10 basic membership to recruit people who are interested in exercising but have never joined a gym before to step into the world of health and fitness.
Many analysts say that the $10 price was right in the sweet spot: cheap enough to draw people to Planet Fitness who want to get in shape and, equally as important, not so expensive that they will cancel if they don’t go often.
Besides, according to some internal reports by Planet Fitness executives, consumers have grown used to price hikes in many sectors and this move will not hurt the company much.
And according to Planet Fitness CEO Craig Benson—” 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.”
