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> P90X, WiiFit, exercise DVDs - those become $1b markets. Massive margin on buy-once items + insane marketing budgets = $$$. Even Billy Blanks Jr is having a h

> P90X, WiiFit, exercise DVDs - those become $1b markets. Massive margin on buy-once items + insane marketing budgets = $$$. Even Billy Blanks Jr is having a hard time with his DVDs (http://www.meettheblanks.com/ http://www.meettheblanks.com/, watch the Shark Tank episode if you haven't already). Fitness is fickle. > CrossFit is a $1b company. Gyms make so much money because they hard sell you to commit, then you sign a contract you can't get out of.

JofArnold 14y ago
This ^. Your reply is way more succinct than mine - thanks.
JofArnold 14y ago
I'll add that the gyms one is slightly subtle. It's not just about the contracts locking you in (those are becoming less common) but it's that in the eyes of many gym-goers the membership buys them an opportunity to get fit. They perceive value in holding a membership. They are also afraid to let it go because they would have to face facts about their commitment.
deleted 14y ago
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dkarl 14y ago
I know this is ridiculously off-topic, but Crossfit doesn't work at all like that. To the best of my knowledge, Crossfit doesn't even sell contracts to people who haven't graduated from the six week intro class, which is a serious reality check for people who prefer to keep exercise in the realm of fantasy. Thus, they weed out the best potential absentee customers before they can even buy a contract. My instructor emails me when I skip class and then gives me shit about it (in a good-natured way, of course) when I show up for the next one. Gyms love people who don't show up. They only care who pays and who doesn't. At Crossfit, they get grouchy if you pay and don't show up. They literally complain about free money! It's unfair to lump them in with the big box gyms whose business model depends on people not getting what they paid for. It's true that my current facility requires a one-year contract to get the very best rates, which was a shock since my previous Crossfit facility only had one-month and three-month contracts, but that's nothing compared to big box gyms selling five-year memberships, offering guaranteed low monthly fees for a big one-time "lifetime membership" fee, and making it ridiculously hard to cancel recurring payments. Also, there's zero sales pressure on contracts. I've never spoken to anyone affiliated with Crossfit except the instructors, and I've never spoken to them about money except when signing up at a new facility. A better summary for how Crossfit makes their money would be charging high prices and being the dominant brand in a market they created.
- JofArnold 14y ago
  CrossFit the company makes money from its affiliates I gather. PS, I love CrossFit - been doing it for about a year now.
  - dkarl 14y ago
    Well, yes -- and a farmer gets corn from cornstalks :-)
dave1619 14y ago
Just watched the Shark Tank episode with Billy Blanks Jr. How do you know he's having a hard time with his DVDs?

JofArnold 14y ago

This ^. Your reply is way more succinct than mine - thanks.

JofArnold 14y ago

I'll add that the gyms one is slightly subtle. It's not just about the contracts locking you in (those are becoming less common) but it's that in the eyes of many gym-goers the membership buys them an opportunity to get fit. They perceive value in holding a membership. They are also afraid to let it go because they would have to face facts about their commitment.

deleted 14y ago

[deleted]

dkarl 14y ago

I know this is ridiculously off-topic, but Crossfit doesn't work at all like that. To the best of my knowledge, Crossfit doesn't even sell contracts to people who haven't graduated from the six week intro class, which is a serious reality check for people who prefer to keep exercise in the realm of fantasy. Thus, they weed out the best potential absentee customers before they can even buy a contract. My instructor emails me when I skip class and then gives me shit about it (in a good-natured way, of course) when I show up for the next one. Gyms love people who don't show up. They only care who pays and who doesn't. At Crossfit, they get grouchy if you pay and don't show up. They literally complain about free money! It's unfair to lump them in with the big box gyms whose business model depends on people not getting what they paid for. It's true that my current facility requires a one-year contract to get the very best rates, which was a shock since my previous Crossfit facility only had one-month and three-month contracts, but that's nothing compared to big box gyms selling five-year memberships, offering guaranteed low monthly fees for a big one-time "lifetime membership" fee, and making it ridiculously hard to cancel recurring payments. Also, there's zero sales pressure on contracts. I've never spoken to anyone affiliated with Crossfit except the instructors, and I've never spoken to them about money except when signing up at a new facility. A better summary for how Crossfit makes their money would be charging high prices and being the dominant brand in a market they created.

JofArnold 14y ago
CrossFit the company makes money from its affiliates I gather. PS, I love CrossFit - been doing it for about a year now.
- dkarl 14y ago
  Well, yes -- and a farmer gets corn from cornstalks :-)

dave1619 14y ago

Just watched the Shark Tank episode with Billy Blanks Jr. How do you know he's having a hard time with his DVDs?