### Planet Fitness Raises Membership Fee for First Time in Two Decades
Planet Fitness, the largest gym chain in the United States known for its $10-a-month membership plan, is increasing the monthly fee for the first time in over 20 years. The company will raise the price of its “classic” membership from $10 to $15 for new members starting this summer. This basic membership provides access to one location, while the $25 monthly “Black Club” membership offers more location access and additional perks.
### Reasons Behind the Fee Hike
While Planet Fitness executives did not specify the reason for the price increase, factors such as higher interest rates and construction costs affecting new gym openings may have played a role. The chain’s business model of providing no-frills gyms with a basic selection of machines at a low cost is being threatened by rising expenses. The $10 membership fee has been synonymous with the Planet Fitness brand, attracting individuals who are new to gyms or seeking an affordable fitness option.
### Impact on Consumers and Business
The move to raise prices comes amidst a trend of businesses increasing prices since the start of the pandemic in 2020. The $10 fee was a key marketing tool for Planet Fitness, appealing to individuals who may have been hesitant to join a gym due to cost or intimidation. The company has historically used this low price point to attract new members, with 40% of new sign-ups having never belonged to a gym before.
### Response from Analysts and Executives
Analysts have questioned the timing of the price increase, particularly as consumers are facing inflation and seeking value. However, Planet Fitness executives believe that consumers have become accustomed to price hikes and that the move will not negatively impact the business. The company aims to upsell members to its higher-priced Black Card membership, offering additional amenities and access to all locations.
### Future Outlook
Despite the price increase, Planet Fitness remains confident in its ability to retain members and attract new customers. Interim CEO Craig Benson emphasized that price adjustments are common in various industries and that the company’s decision to raise fees reflects changing market conditions. As the fitness industry continues to evolve, Planet Fitness seeks to maintain its position as a leading provider of affordable gym memberships.
Original Story at www.cnn.com – 2024-05-09 17:28:00
