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Planet Fitness: Profiting from Your Inactivity?

  • Writer: Bradley Baumeister
    Bradley Baumeister
  • Feb 4
  • 3 min read


We've all been there. Motivated by New Year's resolutions or a sudden urge to get fit, we sign up for a gym membership. Then, life happens. Work gets crazy, motivation wanes, and before you know it, months have passed since your last visit. While you might feel guilty about the wasted money, Planet Fitness might not be so upset. In fact, some argue that their business model is partly built on members not showing up. Is this true? Let's dive into the reasons why Planet Fitness might profit from your inactivity.


The High-Volume, Low-Cost Model:

Planet Fitness thrives on a high-volume, low-cost membership model. They offer extremely affordable rates, attracting a large number of members. This strategy works because, statistically, a significant percentage of those members won't use the gym regularly. If everyone showed up consistently, the gyms would be overcrowded and unsustainable.


The "Lapsed Member" Goldmine:

Gyms rely on the fact that many people overestimate their commitment. They sign up with the best intentions but eventually fall off the wagon. These "lapsed members" continue to pay their monthly fees, providing a steady stream of revenue for Planet Fitness, even though they aren't using the facilities. This creates a predictable income stream, regardless of gym attendance.


The Upselling Game:

While the basic membership is cheap, Planet Fitness encourages members to upgrade or purchase additional services. These can include things like tanning beds, massage chairs, or premium memberships that offer access to more amenities. Even occasional users might be tempted to splurge on these extras, further increasing Planet Fitness's revenue. The low base price makes the upsells seem more palatable.


The "Judgment-Free Zone" Appeal (and its Implications):

Planet Fitness markets itself as a "Judgment-Free Zone," attracting people who might feel intimidated by traditional gyms. This inclusive environment is a smart business move, as it broadens their potential customer base. However, it also likely contributes to the high number of inactive members. Many people might join with the intention of going, but the lack of pressure or a more hardcore fitness atmosphere can make it easier to skip workouts.


The Fine Print and Cancellation Fees:

Let's be honest, gym memberships can be tricky to cancel. There are often contracts, cancellation fees, and specific procedures that must be followed. Many people simply forget about their memberships or find the cancellation process too cumbersome, leading them to continue paying even when they're not going. This further benefits Planet Fitness financially.


Is it Deliberate?

It's important to note that Planet Fitness isn't necessarily trying to trick people into paying for unused memberships. Their business model is based on probability and the fact that a certain percentage of members will always be inactive. They offer a service at a low price, and it's up to the individual to utilize it.


What Can You Do?

If you're a Planet Fitness member, be honest with yourself about your fitness goals and how often you're realistically going to go. If you find yourself not using the gym, don't just throw money away. Cancel your membership (and if you need help with that, check out Quitness.com!). There are plenty of other ways to stay active that might better suit your lifestyle.


The Bottom Line:

While Planet Fitness provides an affordable option for those looking to get in shape, their business model undoubtedly benefits from a certain percentage of inactive members. Understanding this dynamic can help you make informed decisions about your own fitness journey and avoid wasting money on unused gym memberships.

 
 
 

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