Entrepreneur · Entrepreneurship

Whats do you think about "pay as you go" concept in fitness industry?

Yegor Isaev Co-founder at GodMode, CFO at StudyFree, ex-Deloitte, ex-RDIF

Last updated on March 25th, 2020

My friend is working on a project that allows going to the gym on a "pay as you go" concept. Currently, they have delivered a first version of the product and trying to get some traction. Those how to use the app can stop buying yearly fitness tickets and instead can just use the app and go to any connected gym and pay on a minute-by-minute basis.


One of the problems that I see is that for most gyms this business model is not attractive seen they lose some of the clients (i.e. those who bought annual tickets but did not go to the gym often).


What do you think about this idea?

Shamal Badhe Project Marketing Manager @ Companion ITCS

March 30th, 2020

This idea is good. The problem you mentioned can be resolved by this feature.

Do you think this option is more effective? Mostly when the user has to pay minute-by-minute.


Instead, why don't you put a coupon strategy for an hourly basis?


Let me know your thoughts.


Shamal

Paul Garcia marketing exec & business advisor

April 22nd, 2020

What motivates many people to go to the gym is the fact they've already paid, and therein should be getting value for their money (guilt factor). Most gyms count on the fact they can oversell capacity because all the members they have won't show up at the same time, and yet the facility can still collect money. Not only would capacity planning have to change dramatically, there would need to be other factors in use to motivate gym users to return instead of putting it off or just not coming anymore.


What may be more workable is a usage discount, like a rebate incentive. If you set a goal at the start of the month, and meet that attendance goal, then you get a rebate on the monthly fee. Then the onus is on the member to come often to lower their fee. Facilities don't actually want lots of regular users unless they're paying for extras. But, they could charge an even higher than normal fee meant to be offset by the likelihood the member won't follow through on their goal to reduce the fee. This passes the shame to the member instead of making the gym look like a greedy business.


I don't know. I have never been a gym member and there is nothing that could motivate me to go, no matter the amount of the fee (high or low), so I'm not the best to ask.