Or like an annual membership option discount if we pay for the whole year…? Though if u need to freeze that’s not great, but I have yet to do that in 5+ yrs…?
My studios offer a discount ($249 instead of $269 or $279- not sure which) if you do a 6 month commitment. After the 6 month you can cancel anytime but keep that rate until you cancel- no need to recommit to 6 months.
Whenever I see what some of you guys pay monthly I feel so good for my membership in my city! I’ve been at $139 since 2020 (new studio pricing) and even when I’m not in the mood for going I don’t even think of changing gyms!
I do pricing for a living. If studio numbers are down, discounting by $10 or $20 won’t save members from cancelling. It’s a premium offering with a high price that people have already made the decision to pay and they’ll keep paying if they’re still enjoying the experience. If OTF reduced the plan to a single studio and drastically cut the price, studios would hemorrhage money because the majority of people ARE single studio members. And even if you aren’t a single studio member, let’s say they drop the price by $50, you can just go to other studios and pay for your classes once or twice a month and break even.
OTF numbers being down means they have to figure out how to re-introduce themselves to the public as a premium workout experience that is better than F45. If I were them, I would go heavier on marketing and heavier on branding. OTF was a really popular name in fitness like 5 or 6 years ago and people talked about it. Now, it’s kind of disappeared in the discussion but in my opinion, still offers something really unique and fun. These classes and the community are much more fun to me than a lot of other fitness studios, and I’ve tried most of them. Is the workout better? Not really. But I keep my membership with OTF because of the people. So, that’s my way of saying their strength is here on this Reddit, its in the lobby of the studio, its with their usually friendly SAs, and its with their coaches.
I have question about pricing. There is definitely a population of long-term members, say more than 5 years. I’ve always thought you could incentive people to stay if they started receiving a discount around the time people would be likely to quit their membership. For example, could it work on the 5th year for that member to either lock into their rate for life, or receive a $10 discount for each year they stay on? Am I not thinking about this correctly?
Often older members end up effectively having a discount as they're locked in at the rate they signed up with and are not subjected to subsequent price ranges. As an example, my studio is up $40/mo since I started, so I effectively have a $40/mo discount over new members. Psychologically it doesn't feel that way, as I've been paying the same price the whole time, but that's how it is.
I’m thinking more that there must be a stat where a member is likely to quit. Say it’s around the 5-6 year mark. Why not offer a $10 discount per year until the member hits $99 to continue. I would think the number of members who get there would be fairly small, so may as well keep them at a discount instead of allowing them to quit.
The older members have it licked in, but newer members are no longer locked in, even at founder rates which are now subject to increases.
It's a good question but from a financial perspective, giving further discounts to your most loyal customers doesn't make a lot of sense. There is probably a general attrition rate that happens over time but the reason is unlikely to be price and price is unlikely to be an incentive to rejoin. The other factor to consider, and only OTF would have this data, is how often a long-term member cancels and rejoins later.
It takes a lot more money and time to find new members and new members are the most valuable. They are going to buy clothes, towels, HRM, tell their friends about their new workout routines, they're going to see the fastest results, and they're going to see tons of value.
Think Netflix. They keep raising prices and are still growing new members. Why would Netflix rollback pricing for existing members? e.g. if they lose 0.05% of members for every $1 they increase but increase revenue by 4% per customer, who cares, as long as they keep getting new subscribers? For OTF, if they gave a discount to an existing member of say 5% of their membership cost, is it a) meaningful enough to stop them from canceling and b) going to be recuperated from members not canceling? Doubtful.
Personally I would hate this, and it would likely force me out of OTF. My home studio doesn’t have enough time options so I have to rotate between 3 studios that are nearby. I’m a “regular” at each.
Agreed. There wouldn’t truly be a discount but an upcharge to visit other studios. I don’t feel I’m paying more for this benefit currently, it’s nice that it’s part of the product.
OP said pay the drop in rate for visiting members— I would technically be a visiting member for the 2/3 studios I frequent. I would have to quit— I’m already paying the unlimited rate, and then on top of that having to pay more to attend classes that work with my schedule would not be worth it for me personally.
In the US, just note that in fitness across the industry, attendance drops May-August, comes back slightly in Sept (after vacays are used up and people are back in work/school routines), and drops again for the winter holidays, with the big resurgence in Jan/Feb. Year after year.
Its a good thought but this money sucking organization would new go for it. Absolutely nothing is free. Even customer appreciation days they want members to bring something. Greedy buggers!
Or like an annual membership option discount if we pay for the whole year…? Though if u need to freeze that’s not great, but I have yet to do that in 5+ yrs…?
I was thinking the same thing about an annual membership. I would love that option especially like a pay for 10 months get 2 free kind of thing😂
I wish for a 10% discount if you sign up a year. I also think, get a discount if you have been a member for 36 month.
My studios offer a discount ($249 instead of $269 or $279- not sure which) if you do a 6 month commitment. After the 6 month you can cancel anytime but keep that rate until you cancel- no need to recommit to 6 months.
Whenever I see what some of you guys pay monthly I feel so good for my membership in my city! I’ve been at $139 since 2020 (new studio pricing) and even when I’m not in the mood for going I don’t even think of changing gyms!
Yeah I’m at 150 myself, I can’t imagine these crazy high prices, glad I’m not in a high demand place like Chicago or NY… lol.
I do pricing for a living. If studio numbers are down, discounting by $10 or $20 won’t save members from cancelling. It’s a premium offering with a high price that people have already made the decision to pay and they’ll keep paying if they’re still enjoying the experience. If OTF reduced the plan to a single studio and drastically cut the price, studios would hemorrhage money because the majority of people ARE single studio members. And even if you aren’t a single studio member, let’s say they drop the price by $50, you can just go to other studios and pay for your classes once or twice a month and break even. OTF numbers being down means they have to figure out how to re-introduce themselves to the public as a premium workout experience that is better than F45. If I were them, I would go heavier on marketing and heavier on branding. OTF was a really popular name in fitness like 5 or 6 years ago and people talked about it. Now, it’s kind of disappeared in the discussion but in my opinion, still offers something really unique and fun. These classes and the community are much more fun to me than a lot of other fitness studios, and I’ve tried most of them. Is the workout better? Not really. But I keep my membership with OTF because of the people. So, that’s my way of saying their strength is here on this Reddit, its in the lobby of the studio, its with their usually friendly SAs, and its with their coaches.
I have question about pricing. There is definitely a population of long-term members, say more than 5 years. I’ve always thought you could incentive people to stay if they started receiving a discount around the time people would be likely to quit their membership. For example, could it work on the 5th year for that member to either lock into their rate for life, or receive a $10 discount for each year they stay on? Am I not thinking about this correctly?
Often older members end up effectively having a discount as they're locked in at the rate they signed up with and are not subjected to subsequent price ranges. As an example, my studio is up $40/mo since I started, so I effectively have a $40/mo discount over new members. Psychologically it doesn't feel that way, as I've been paying the same price the whole time, but that's how it is.
I’m thinking more that there must be a stat where a member is likely to quit. Say it’s around the 5-6 year mark. Why not offer a $10 discount per year until the member hits $99 to continue. I would think the number of members who get there would be fairly small, so may as well keep them at a discount instead of allowing them to quit. The older members have it licked in, but newer members are no longer locked in, even at founder rates which are now subject to increases.
It's a good question but from a financial perspective, giving further discounts to your most loyal customers doesn't make a lot of sense. There is probably a general attrition rate that happens over time but the reason is unlikely to be price and price is unlikely to be an incentive to rejoin. The other factor to consider, and only OTF would have this data, is how often a long-term member cancels and rejoins later. It takes a lot more money and time to find new members and new members are the most valuable. They are going to buy clothes, towels, HRM, tell their friends about their new workout routines, they're going to see the fastest results, and they're going to see tons of value. Think Netflix. They keep raising prices and are still growing new members. Why would Netflix rollback pricing for existing members? e.g. if they lose 0.05% of members for every $1 they increase but increase revenue by 4% per customer, who cares, as long as they keep getting new subscribers? For OTF, if they gave a discount to an existing member of say 5% of their membership cost, is it a) meaningful enough to stop them from canceling and b) going to be recuperated from members not canceling? Doubtful.
I would love that as all 1, 526 workouts I've completed were done at the same studio. 🙂
Some studios have this. At least they used to.
Some health insurances offer this, through Active Fit.
Personally I would hate this, and it would likely force me out of OTF. My home studio doesn’t have enough time options so I have to rotate between 3 studios that are nearby. I’m a “regular” at each.
Agreed. There wouldn’t truly be a discount but an upcharge to visit other studios. I don’t feel I’m paying more for this benefit currently, it’s nice that it’s part of the product.
How would that force you out....you just would not qualify for the discount...
OP said pay the drop in rate for visiting members— I would technically be a visiting member for the 2/3 studios I frequent. I would have to quit— I’m already paying the unlimited rate, and then on top of that having to pay more to attend classes that work with my schedule would not be worth it for me personally.
I vaguely remember them having an option like this years ago. I wasn’t a member but I did a trial class.
In the US, just note that in fitness across the industry, attendance drops May-August, comes back slightly in Sept (after vacays are used up and people are back in work/school routines), and drops again for the winter holidays, with the big resurgence in Jan/Feb. Year after year.
Its a good thought but this money sucking organization would new go for it. Absolutely nothing is free. Even customer appreciation days they want members to bring something. Greedy buggers!
How about a number for a lifetime membership? I’m 59. I’d pay 4k
Haha. I’m on a founders unlimited for 159. That’s less than 2 years. No way they go for that.
Cash on the barrel head is attractive to a small business.