Wednesday, June 12, 2024

Planet Fitness increasing ‘classic’ membership prices by 50%

Must read

For the first time in a quarter century, Planet Fitness Is raising the price of its most-popular membership program.

The company on Thursday announced it was increasing the cost of a classic membership from $10 per month to $15 per month, effective this summer. That could be the motivation some fence-sitters need to join, though, as any member who has the $10 plan when the rate hike goes into effect will continue to pay $10 per month “for the duration of their membership,” the company said.

For now, no plans are in place to increase the price of the Black Card membership, which currently costs $25 per month and lets members bring a guest and access any Planet Fitness location. The company, however, did say it will start testing higher fees for that membership in some locations this summer, which could portend a future across-the-board increase.

The price increase comes as the company reported weaker-than-expected revenues in the first quarter. Planet Fitness also cut its guidance for the year. Officials warned that even with the 50% price hike on the classic membership, it could “take some time” before the company begins to see benefits, since it will honor the $10 rate for existing customers.

Planet Fitness has long used the $10 rate as a lure to get people into its gyms who might have been intimidated by more expensive options at competitors, which can charge up to $100 per month or more, depending on offerings.

By offering a monthly rate that’s about the same price as a single value meal at a fast-food restaurant, the company has been able to retain many of those members, who often don’t cancel their membership, even if they don’t go for months at a time.

Planet Fitness last raised rates on its basic plan in 1998.

Subscribe to the CFO Daily newsletter to keep up with the trends, issues, and executives shaping corporate finance. Sign up for free.

More articles


Please enter your comment!
Please enter your name here

Latest article