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This is significant - it's not just that gyms want memberships from people who forget they're paying or get locked in, it's that they want low occupancy. If on
by Bartweiss 8y ago
This is significant - it's not just that gyms want memberships from people who forget they're paying or get locked in, it's that they want low occupancy.
If only 1% of your members want to use a squat rack at peak hours, you need gear and space for one rack per 100 members. But if 10% of your members are in squatting at noon on Saturday, you have 10x the capital and maintenance costs. And that's even before hardcore members create other costs like wanting unusual equipment most people won't use.
The obvious answer is pricing discrimination - people who work out more care enough to pay more. But it's hard for one gym to sell tiered access to facilities, plus the different groups often don't want to work out together. Hence, Planet Fitness.
It's hard for me to see what MoviePass could do in this vein. They have the same low-occupancy objective, but much less consumer optimism (who makes a New Year's Resolution to see more movies?) and much less ability to shape behavior; either you want to see a movie or you don't. The only option I can think of is horizontal integration - gyms target either high- or low-use consumers with open access, but MoviePass can more easily sell "x visits per month" for a range of X.