Planet Fitness has a relatively large and diverse set of offerings. The company was founded in 1992 with the intention of providing high-quality fitness equipment at competitive prices, while openly acknowledging that lower prices means lower quality.
Though it might not be obvious why Planet Fitness would focus on cheaper products, many theorists agree that a combination of low-priced, high-quality services can lead to success in certain industries, like the hotel industry. In this case, Planet Fitness would provide cheap equipment for customers interested in pursuing fitness interests but are unwilling to invest significant sums into their workout routine.
In order to maintain its image as a low-price provider, Planet Fitness has kept membership rates at a bare minimum, allowing customers to sign up with the intention of cancelling quickly. This allows Planet Fitness memberships to be included in budgeting plans and other financial obligations.
The company’s name and tagline – “The Judgment Free Zone™” – also support the “low price” orientation, by reinforcing the idea that anyone, from anywhere, is welcome to use their clubs. They also reinforce the idea of being a no-judgment zone – which can be somewhat antithetical to the competitive world of gymming.
The low-price orientation is a central marketing factor for Planet Fitness. It allows the company to remain competitive while maintaining an upward trajectory.
Planet Fitness’s product lines are another major part of their marketing strategy. Although they sell memberships, the majority of their revenue comes from selling personal training packages and group classes. These additional offerings make Planet Fitness a go-to destination for anyone interested in pursuing a fitness routine regardless of price.
With over 1,000 locations and $1 billion in yearly revenue, Planet Fitness has become a dominant force in the gym industry. The company is now worth more than $2.7 billion with over 6 million members and 33 million annual visits from customers.
The company has also become a major competitor in the broader fitness industry. With new locations opening every week, they have a large influence on the race for market share. It is unlikely that Planet Fitness itself will ever rival other large fitness brands like Gold’s Gym, but any new entrant will have to work to maintain their reputation as one of the top alternative fitness brands around.
By keeping membership rates low and not offering many additional services and amenities, Planet Fitness has capitalized on its low-price model. By doing so, they have been able to gain market share and remain competitive even as other competitors grow.
Planet Fitness creates a “judgment free” environment by allowing customers to become “guests” of their club. As a guest, a customer pays membership fees and is not required to sign any contracts before they begin their membership. If they decide to cancel their membership, they can simply stop paying their dues on the first of the month that corresponds to the month in which they want out.
As a result of these policies, Planet Fitness has expanded beyond just gyms by creating an entire system of fitness classes that cater to members’ unique needs. The company offers numerous classes including circuit training, martial arts, dance/fitness fusion and yoga.
Although most Planet Fitness locations don’t have their own equipment, they are constantly finding opportunities to acquire new inventory. The company buys used equipment from other gyms and sells it at a discount. They also provide memberships for new customers who sign up for classes with the intention of cancelling quickly.
The company has also made an effort to provide unique fitness products to its customers. Instead of providing standard equipment like treadmills, treadmills that can be adjusted to any speed are provided as part of their core package, which can be purchased by anyone who joins their club or who is a member-in-good-standing.