How to Negotiate Price of Gym Membership
Filed Under: Personal Finance
What New Year’s Resolution is first on your list? Generally speaking, getting in shape and saving or managing money better are one and two on that list in whatever you’d deem necessary based on preference.
For some, those resolutions are one in the same when they’re contemplating how to get in shape and doing so by joining a gym and making sure they find the best deal possible.
But can you really treat a gym membership, the negotiating, the shopping around, the back and forth dialogue between you and a sales person the same way you’d buy a car, house or other big-ticket items? The answer is quite simple: absolutely.
Joining a gym in January is a rite of passage for the masses, with about 12 percent of the population inking a deal to start bringing their New Year’s Resolution of losing weight from thought to reality, compared to just under nine percent joining throughout the rest of the year.[1]
One would assume that because there is such a demand by the general population to join that price shopping would be difficult, if not downright impossible. Think of it realistically, if everyone is wanting to join a gym, why would the gym alter the pricing or offer discounts?
The fact remains shopping around is a reality, and gyms are very much interested in the “dance” that is consumer and seller trying to banter with one another so that the former ultimately decides to join and start paying dues.
The reason is the influx of national chains, mom and pop gyms, trainers with private studios and let’s not forget working out at home with DVD’s and privacy in mind as yet another option. The truth is potential exercisers have choice, a plethora of them, so gyms are more than ready to strike a deal with you.
But what can you negotiate? Do gyms alter their monthly dues or is it better to focus on other “fees’ built into the membership, whether those are annual charges or that initial lump sum just to join?
The process sounds daunting, much like that aforementioned car dealership or house hunting, but you certainly can implement tips, tricks and sales tactics as the buyer to get the membership you want, results you need and not have to spend more than you want to get there.
Gym memberships have seen a steady increase in total number of individuals joining, with 57 million people joining a gym in 2016, compared to 32 million in 2000.[2]
A lot of that quite frankly stems from lower monthly dues, increase in rival gyms, and other perks (24 hours open, free training, etc.), but at the end of the day this hotly contested marketplace benefits you, but only if you know exactly how to secure a deal that is a win-win all around.
Here are six tips on how to streamline the sign-up period and secure the best deal possible:
Tips 1 and 2: Shop Around, and Negotiate Initiation Fee
Fitness is a very competitive forum, and that sentiment has little to do with increasing the amount of weight you lift, miles you run or reps you can complete.
This is more centered and specific to how health clubs and gyms want your business, and they realize just how important it is to get off to a fast start in January, so in that vein they may be more receptive to wheeling and dealing.
Generally speaking, gyms are always game for freebies and doing what it takes to get you to join, within reason.
But fitness has changed a lot in the last five to 10 years. You have less privately owned gyms with lower-cost chains moving through and wiping those types of facilities out with newer equipment and better pricing.
Privately owned “gyms” now come in the form of studios that specialize in personal training, group classes or CrossFit, something designed to focus on the person, get results even if it’s much more expensive.
You’ll spend about $50 to $60 per hour with a personal trainer, and typically you’ll want to spend at least 2 to 3 days (sessions) per week with them. [3]
That doesn’t mean, however, you can’t shop around till you find what you wants, and you should always negotiate something by using other offers and information to your advantage.
When you buy a car, maybe one dealership offers you $2,000 for your trade in and the next place says it’s only worth $1,000. If the dealership offering the $1,000 has the car you ultimately want, why not let them know another place is offering more for your trade in?
The same holds true for gym memberships and studios. They don’t really change or alter monthly dues; those are set in stone, relatively speaking, particularly when you’re talking about the likes of Planet Fitness and LA Fitness, two of the larger chains.
They don’t adjust dues, but what they can do is get rid of some of the fees associated with joining. The real negotiating starts with getting that enrollment fee waived, and most clubs and gyms are open to that.
Most gyms are equipped with a sales staff, and have a quota to reach, so they realize the importance of getting you to join on the spot.
If you start heading for the door, they’ll undoubtedly ask you “why” or what is keeping you from joining today. Explain that other gyms have offered to waive the enrollment or initiation fee, and you’ll see a change of heart almost immediately. Walk out the door, and you can expect a phone call a few days later with a better deal waiting.
Another reason the initiation fee is negotiable is due to clubs like Planet Fitness who charge $1 to sign up, and $10 a month after that.[4]
Use those national chains and their lower-end business model if you’re more interested in joining a place that might be a little more expensive per month but has the equipment you want: as long as you don’t pay anything to join up front.
Tips 3 and 4: Check for Discounts and Try the Gym First
As much as you gripe, grumble and downright shake your head at rising health premiums, you might be missing an important perk your health insurance offers you.
Discounted gym memberships.
If your company has a corporate rate at a gym, you might be better served to go there, versus paying full price somewhere else.
Also, some health insurance pay as much as 60 percent off your monthly dues at a participating provider.[5]
The same can be said to potential members if they mention where they work. Corporate fitness has surged in recent years, mostly due to employers offering gym membership discounts as preventive means to keep premiums down. The average employer negotiates with gyms to the tune of up to 50 percent off monthly rates and fees.[6]
In order to get the best rate, however, if you don’t fall into the corporate discussion or health insurance pool is a battle and time-tested approach: try the club first before you decide to join.
National chains and even the smaller gyms aren’t opposed to having you use a 7-day or 10-day guest pass to try the club before you sign up.
This is always an advisable option for individuals who don’t have the best track record when it comes to sticking to a membership and end up quitting shortly after their New Year’s Resolution is fresh in their mind.
The sad truth is that 80 percent of individuals who joined in January quit by the first week in February.[7]
Using a free pass first also allows you to not only see if you’ll go on a consistent basis (if you can’t go on a regular basis in 7 days, what makes you think you’ll stick with it for months upon months?) but also just how busy the gym is going to be at the time you want to go.
The busiest time to go to the gym typically is between 4 and 7 p.m., a prime time for individuals to go after work.[8]
If you try before you before you buy to not only see if you’ll go but when you go makes sense, you’ll be better off rather than joining as a spur of the moment thing only to see that gym bag start collecting dust by next month.
The other piece of doing a guest pass first is it gives you a leg up with the sales person who really wants you to join, and you’re telling them “not yet,” they’ll follow-up with you for certain but always allows you to have the leverage when the pass is up, and it’s time to join.
Sales people know that “try before you buy” is a part of the job, but ultimately gives more power to the customer when it comes time to sign on the dotted line.
Tips 5 & 6: Join Online or At the End of January
One question that consistently comes up as far as joining a gym is whether you even have to join in person, in front of a sales person and having those high pressure tactics come to the forefront.
Joining a gym online has turned into the Cyber Monday of fitness.
By that, you can avoid the rush of Black Friday (i.e. sales people harassing you to join) and simply sit back and join a gym with a few clicks, much the same way you shop the Monday after Black Friday, and still find incredible deals.
If you don’t believe fitness sales and sales people in general in that forum can be a pressure cooker, consider that you’ll be given a tour, asked open-ended questions and given a full blown presentation at most gyms. Now some, like Planet Fitness, are a little more laid back, but you still get the questions and presentation, minus the hard sell at the end of it all (mostly due to Planet being so inexpensive).
Joining online at a place like Planet Fitness is easy, because you don’t really have any surprises. They have machines, cardio and some weights, and they promise that everyone there is like you: trying to lose weight and new to the gym. If that sales pitch via the world wide web is enough for you, then joining online is preferable.
That said, if you’re a need to see it first, walk through the place and get a vibe, expect to be hit with a lot of questions about why you want to join, what are your goal and how often do you want to come.
The sales person is simply trying to place you in the club with your answers, sort of an assumption means of making a sale.
If joining online works, so be it, but if you want to tour the place, try it out and then ultimately decide to enroll, do yourself a favor and wait until the end of the month. Sales people are always clamoring to hit their goal and numbers, so again they’ll be more apt to give you a little extra on the last day of the month.
Don’t be afraid to say things like, “I’ll join on the spot if you waive the enrollment fee or give me a month free.” Nothing really is off the table as far as the consumer dictating the terms of joining and process in general.
Sales people have goals, and if they need to do something over and above to reach them, they’ll be more inclined to do so with only a few hours to spare before January turns to February, and the process for them starts over again.
Finding the right gym and subsequent membership really is a lot more in depth than most assume.
Sure, price plays a fairly big role in the discussion and negotiation but you also have to find a level of comfort and support to ensure you’re not wasting money. Even the best deal and a price that can’t be beat is useless if you don’t go.
Only about 20 percent of people get the recommended amount of exercise per day, according to the Center for Disease Control.[9]
Working out at home always is an option, but that tends to lead to complacency and is much easier to simply skip workouts because you’re distracted by dinner, laundry, cleaning, kids, homework, etc.
That said, most gyms are raring to go and want your business more than you could ever imagine. January (aside from the summer when things are slow) is the best time to join, mostly due to again the competition that is fostered between the different types of gyms and health clubs, and wanting to start the year and first-quarter off in the right direction financially to secure as many members as possible in the busiest month of the fitness industry.
Gyms know they have a captive, motivated audience and they’re equally prepared to give you an offer you can’t refuse, but that doesn’t mean it’s as easy as walking in, signing up and hitting the weights.
You do have to possess a level of understanding of how memberships work, what to say, when to walk away and exactly what goes into constructing the best deal possible.
If you’re going to go all in and lose weight as part of a new year for a new you, do so knowing that you’re also saving money and spending the appropriate amount on this fitness journey.
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