Health clubs have a brilliant business model that counts on members who sign-up with the best of intentions rarely, if ever, showing up.
If everyone who belonged to a gym actually worked out on a regular basis there’d be chaos (for a deep dive into the economics of gyms, check out this Planet Money podcast.)
But the super cheap $10-a-month deals health clubs are touting these days are pure genius.
It’s the perfect play for customers who know they’re unlikely to actually go and are wise enough to reject a year-long contract that costs $30 or $50 a month.
At $10 a month — and no long-term commitment — it’s almost irresponsible not to embrace the financial risk and take another shot at remaking yourself into a dedicated gym rat.
I say another shot because I’ll bet these deals attract a surprising number of new members who’ve spent hundreds of dollars on unused memberships in the past.
Maybe even at the same club.
So what happens if you fail this time?
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