Why is Planet Fitness so famous?
Planet Fitness has a competitive business model, strong brand, and low-cost memberships, but that’s not necessarily how it became the leader in fitness franchising. Many people believe it’s the no-frills atmosphere, simple selection of machines, and free pizza but there’s so much more to it than that! As with most corporate decisions, the bottom line is the reason for a price increase. For starters, it’s costing Planet Fitness more to provide the facilities for its members than in the past. Based on inflation, the $10 monthly membership would be about $20 today, Fitzgerald said.We use a disciplined data-driven approach to determine the best balance between the higher dues while minimizing loss of membership. Based on our learnings, we decided to change the price of the classic card to $15, PlanetFitness CEO Craig Benson said on the earnings call.Planet Fitness will raise the price of its “classic” membership from $10 a month to $15 for new members beginning in the summer. The “classic” membership gives people access to one location. Planet Fitness’ $25 monthly “Black Card” membership offers more location access and perks.When considering the cost of a Planet Fitness membership, keep in mind that there is an annual fee of $49. You pay the annual fee in addition to the monthly membership fees.PLNT)’s profitability, incorporating key financial data from 2024: Gross Profit: For the year 2024, Planet Fitness reported a gross profit of $0. Planet Fitness’s gross profit margin for the quarter that ended in December 2024 was 48.
Why is Planet Fitness so cheap?
Planet Fitness offers low-cost memberships for several reasons: Business Model: Their model is based on high membership volume rather than high fees. They aim to attract a large number of members, many of whom may not use the gym regularly. This allows them to generate revenue from a wide base while keeping prices low. Remember, gyms have very high fixed costs, especially rent. Yet members don’t make frequent purchases like a store. To profit, gyms squeeze long commitments and upfront fees from members. Difficult cancellation keeps the revenue flowing from non-active members.Overhead Costs and Expenses The operational costs alone can add up quickly, especially in larger facilities where space is at a premium. Construction costs also play a significant role in determining membership fees. When a gym is built, there’s a substantial investment in the physical space and fitness equipment.Weaknesses A major weakness associated with Planet Fitness is its low profit rates. The same prices that are helping them stay in the business are the same prices that are causing them to have the lowest profit range. Their profit range is the lowest in the industry (Admin, 2022).With more than 2,700 locations in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia, Planet Fitness has continued to spread its unique mission of enhancing people’s lives by providing an affordable, high-quality fitness experience in a welcoming, non-intimidating environment.Like many professional gyms, Planet Fitness does not make cancelling your membership easy. However, it is possible to do it so long as you have some patience and are willing to jump through a few contractual hoops.
Is Planet Fitness a beginner gym?
For those new to the fitness world, stepping into a gym can be overwhelming, but with Planet Fitness’s judgment-free zone, it’s easier to feel right at home. This approach is all about creating a welcoming environment where everyone, especially beginners, can work out without feeling judged or intimidated. Between 60% and 70% of gym memberships go unused, a statistic that highlights the challenge of member engagement and retention in the fitness industry.Understanding the psychology behind gym enrollment can reveal why we’re drawn to fitness centers in the first place. Many of us seek gym memberships not just for physical fitness, but also for mental well-being. We often associate fitness clubs with a sense of community and support, which can be incredibly appealing.
Why is Planet Fitness $15 instead of $10?
As with most corporate decisions, the bottom line is the reason for a price increase. For starters, it’s costing Planet Fitness more to provide the facilities for its members than in the past. Based on inflation, the $10 monthly membership would be about $20 today, Fitzgerald said. The price is for Planet Fitness’s Classic Card, which gives users unlimited access to one gym. Benson said that Planet Fitness had started testing $12. The $15 fee drove the biggest increase in average revenues per gym with the least impact to the rate of joins, he said.The higher-priced monthly plan offers access to all of Planet Fitness’ gyms and perks like water massage beds, massage chairs and tanning equipment, and Black Card members can also bring a visitor.The PF Black Card® is our most popular membership, loaded with perks including access to any of our 2,600+ locations worldwide, bringing a guest every time you work out, and so much more.The PF Black Card membership starts at $24. The ability to bring one guest. Access to any Planet Fitness gym worldwide.