Learning the endowment effect from Planet fitness

Planet Fitness’s $15 membership is more than just a clever pricing strategy—it’s a brilliant example of the endowment effect in action. Once people sign up, the membership feels like it’s theirs. Even if they don’t use it much, canceling feels like giving up on something they own—a small but meaningful investment in their fitness goals. At just $15 a month, it’s easy to justify keeping it, even if they’re not showing up regularly.

Here’s the kicker: most people don’t go. Studies show that only about 10–20% of gym members are consistent users. Planet Fitness has mastered a business model that works because the price is so low that it flies under the radar. People hang on to the membership because they feel invested in it, even if the idea of going to the gym doesn’t match their actual behavior. It’s not just about affordability; it’s about creating that sense of ownership that keeps people engaged—even passively.

For businesses, this is a great reminder to think about how the endowment effect might work for their products or services. How can you create a sense of ownership that makes people feel invested? Maybe it’s offering a low barrier to entry like a free trial, creating a custom experience that feels personal, or framing your product as an easy way to start working toward a bigger goal. The more people feel like they “own” a piece of your brand or offering, the harder it will be for them to let go—even if they’re not using it every day.

Planet Fitness isn’t just selling gym memberships—they’re selling the idea of fitness. They’ve tapped into a psychological principle that keeps people feeling good about their purchase, no matter how much they use it. For any business, this is a powerful strategy to consider: how can you make your customers feel like they’ve invested in something they don’t want to give up?