Surviving the Economy

Every business today has been affected by the economic downturn. I doubt any fitness facility has been immune to members who have had to either put their memberships on hold or terminate them completely due to layoffs, pay cuts, etc. The question, then, is what is the right thing for the fitness industry to do to not only help their customers, but to also reduce their attrition rates?

Several solutions are being offered for how fitness facility operators are dealing with customers who are in a pinch. But, all of these solutions deal with the dreaded “discounting.” The notion to discount our products and services has been widely discouraged over the years, namely because, by discounting, we’re sending a message that our product is not worth what we’re asking. But, is that really relevant in today’s economic climate?

For many facilities, apparently not. According to an article published last week in The New York Times titled Staying Healthy in a Sick Economy, the author notes that consumers are especially in need of a healthy outlet during this stressful period. So, to help these consumers and, of course, to keep them on the rosters, fitness center operators are willing to bargain. A couple of examples include not charging members who quit a fee to rejoin when they’re able, and offering shorter, cheaper and shared training options. (See last week’s related blog, Survival of the Fittest.)

The issue is whether the fitness industry can portray itself as the savior by tightening its belt to serve the public, and then reemerge when the economy strengthens as a product to be valued, returning to previous pricing strategies.

Maybe, maybe not. It depends on how many low-priced competitors decide to pounce on the market to lure cash-strapped customers into their facilities and away from the higher-priced ones. Look, for example, at a new line of fitness facilities named MiFit in the United Kingdom. Recognizing that people are struggling to pay the dues at most fitness centers, their new “low-cost fitness concept” provides memberships available only online at a rate of 9.95 pounds per month. According to the managing director of the corporation, MiFit fills “a gap in the market by providing premium fitness technology at a low cost.”

I guess only time will tell how the economy will affect our industry long-term. For now, facility operators will just have to do what they believe is necessary — for the good of their members and their fitness centers.