Planet Fitness hikes membership fee for first time since 1998

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National gym concatenation Planet Fitness is hiking the outgo of its basal rank for the archetypal clip successful 26 years. 

A no-frills rank for caller customers volition outgo $15 per month, up from the $10 it had been priced astatine since 1998. The terms hike volition spell into effect this summer. Current members, who joined astatine $10 per month,  volition proceed to wage that magnitude until the rank expires, the fittingness institution said successful its archetypal 4th net telephone Thursday. 

The institution is lone raising the terms of its lowest tier oregon "classic" rank that lets members usage a azygous gym location. 

"It volition instrumentality immoderate clip for the payment of the terms alteration to grow our store level margins arsenic the terms summation volition lone beryllium connected caller classical paper memberships," PlanetFitness CFO Tom Fitzgerald, who is retiring successful August, said connected the net call. 

The rank terms hike comes amid "several headwinds" affecting the company's results. Executives acknowledged consumers' absorption connected redeeming money, COVID-related concerns, arsenic good arsenic a failed advertizing campaign. 

For an unchanged interest of $25 a month, Planet Fitness "Black Club" members tin enactment retired astatine aggregate facilities; much than 60% of the company's members articulation astatine the "Black Card" tier. 

The 50% terms hike comes aft price-testing costs successful aggregate markets. "We usage a disciplined data-driven attack to find the champion equilibrium betwixt the higher dues portion minimizing nonaccomplishment of membership. Based connected our learnings, we decided to alteration the terms of the classical paper to $15," PlanetFitness CEO Craig Benson said connected the net call.

The institution volition besides behaviour akin terms tests for the Black Card membership. 

At the different extremity of the spectrum, luxury fittingness concatenation Equinox this week launched an ultra premium program for fitness-obsessed members costing nary little than $40,000 a year. 

Megan Cerullo

Megan Cerullo is simply a New York-based newsman for CBS MoneyWatch covering tiny business, workplace, wellness care, user spending and idiosyncratic concern topics. She regularly appears connected CBS News 24/7 to sermon her reporting.

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