The Hidden Costs of Discount Culture in the Fitness Industry

The Hidden Costs of Discount Culture in the Fitness Industry

The fitness industry is all about helping people live healthier, happier lives. But lately, a trend of throwing out steep, long-term discounts is doing more harm than good—not just to businesses but to the people we’re trying to help. This constant price slashing has made everyone think health and wellness should come cheap, and that’s causing some serious problems for everyone involved.

Big discounts - sometimes up to 50% or more - often locked in for months—might bring in new members initially, but they also make people undervalue what’s actually being offered. Over time, customers start to believe that gyms, studios, and wellness services should always be cheap. What’s lost in that mindset is the expertise, high-quality facilities, and the sense of community that these businesses provide.

Here’s the issue: people now shop for the lowest price, hopping from one gym to the next, chasing deals. When the discount runs out and prices go back to normal, many cancel their memberships, leaving studios scrambling to replace them. This constant churn puts massive financial strain on small businesses. Owners end up spending tons of time and money trying to attract new members instead of focusing on creating the best possible experience for the ones they already have.

Companies like ClassPass tend to exacerbate these problems. Sure, they offer variety and convenience for the consumer, but they also set completely unrealistic expectations around pricing. Members pay a fraction of the true cost, while ClassPass takes a big cut of what’s left. For small studios, this is a losing game. They’re providing premium experiences but earning pennies in return, making it nearly impossible to stay afloat. This dynamic devalues the industry even further, teaching consumers to expect top-tier services at bargain prices without understanding the financial toll it takes on small businesses.

Running a small business is no joke. Between rent, utilities, equipment maintenance, insurance, marketing, and paying staff, the margins are already razor-thin. Many small business owners make huge personal sacrifices just to keep the doors open. Some don’t even pay themselves for months or even years. Despite their passion, these financial pressures often lead to closures, leaving communities without the gyms and studios that brought people together.

The saturation of the fitness market makes this even tougher. With so many gyms and studios competing for the same pool of members, the constant price-cutting only fuels the problem. Everyone is trying to outdo each other with bigger discounts, which creates a race to the bottom. If we, as an industry, collectively stopped this cycle, it would be easier for businesses to compete based on quality and experience rather than on who can afford to give away the most.

Fitness businesses should price themselves in a way that allows them to operate sustainably. Different gyms, studios, and formats will naturally fall into different price ranges, and that’s okay. There should be options for everyone—from free community run clubs to high-end personalized health and wellness programs. The key is transparency and fairness. Consumers shouldn’t be tricked into long-term contracts with hidden fees or surprise price hikes. Instead, businesses should focus on delivering value that matches their pricing, ensuring that members feel their investment is worthwhile.

And let’s be real: cheap fitness options aren’t always the best choice for the consumer either. When people pick a gym or program just because it’s the cheapest, they often end up in environments that don’t fit their needs. Maybe it's not something they find joy or satisfaction in, or the community’s not there. When that happens, they’re less likely to stick with their fitness journey, and all those good intentions go out the window.

If the fitness industry as a whole stopped with the constant discounting, we’d all be better off. Businesses could focus on providing great services without always worrying about the next big sale. Consumers could start to see the real value of investing in their health and wellness, rather than treating it like a bargain hunt. And when people choose fitness options that actually work for them, they’re more likely to see results and stick with it long-term.

We have the power to change this. By prioritizing quality over discounts, we can create a healthier and more sustainable industry. Small businesses could thrive, staff could be paid fairly, and members could enjoy consistent, meaningful experiences.

Investing in your health and wellness is one of the best things you can do for yourself. It’s time for the fitness industry to stop cheapening that message and start showing people what true value looks like.

Ashling O'Brien

Empowering Health and Business in Manly | Owner and Centre Manager at OsteoStrong Manly | Former President of Manly Business Chamber | Founder of Manly Health and Wellness Day

1 个月

Hey Alex, I just reread your article after our conversation today. I couldn’t agree with you more. We don’t discount, we just don’t have the margin that allows us to discount and we work to the highest standard and the value we give we believe justifies the price. It’s pretty scary as a business owner watching some businesses offering services at a price that would just put us out of business completely. I do worry sometimes that customers make the decision in price rather than actual value, results and service

Anja Linsmaier

Head of Non-Life, Australia & New Zealand

1 个月

Well said, Alex. Thank you for everything you do for our the small business community. Personally, I value personal touch, community and sense of belonging much higher than exercise experiences geared towards the masses, and are more than happy to pay appropriately for it.

Lisa Mayer Benevides

Senior Events & Sponsorships Specialist at Fredrikson & Byron, P.A.

1 个月

Great article, Alex! Such great information to be shared broadly. You are rocking it and I love watching your success from the sidelines!

Hammad Shahid Hafeez

Sales & Marketing, CMDip

1 个月

The dreaded race to the bottom! Well written for sure

Jack Thomas

Co-founder, The Fit Guide | Founder and CEO, BASE | Host, Fitness Business Asia Podcast.

1 个月

Thanks for sharing your thoughts on this Alexandra. It's a topic I'm passionate about and talk on regularly on Fitness Business Asia Podcast When sales aren't where you need them to be, you have two options: 1. Improve your service and experience. Offer more value. 2. Slash prices. If you choose 2, it's the beginning of the end. And in the fitness industry we too often, too quickly choose 2. *Having a strong, smooth sales process is actually part of 1 - it's an improvement on the service and experience offered

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