In an interview with
Health Club Management magazine, Stephen Roma, CEO of American fitness chain Wow! Work Our World, said that pricing is the greatest issue the health club industry has to face.
He claims gyms were initially created to provide a service to bodybuilders, people who were already exercisers. The industry therefore charged prices consistent with simply providing a facility for people who wanted to come in and exercise.
Since then however, the market has changed dramatically but pricing structures have not.
“The fitness industry was born out of a mentality and purpose that was different to what it is now,” he said.
“We’re charging a price born out of providing no service, but the people we’re attracting now require significant service.
“So either we need to figure out a way to supply these services that people need at our current price or we need to start charging up to US$400 (£230) a month, then pair the member up with someone who is going to help them two to three times a week for the first six months.”
He also believes that low-priced facilities are a threat, although confesses that if they make more people aware of health clubs and exercising, then they are a good thing.
Wow! Work Out World currently operates nine facilities and plans to reach 20 as soon as possible. It also has 29 franchised sites throughout America, Canada, Japan and China. For the full interview, see HCM October 2005, page 26. Visit www.leisuresubs.com or call +44 (0)1462 471913 to subscribe.
