DENVER &mdash ;Fitness clubs are trying to entice consumers in a faltering economy by offering introductory discounts and spending more on advertising and marketing.
Some Denver clubs are reporting decreases in membership during the last year and even profitable clubs like the Minnesota-based Life Time Fitness Inc., are scaling back on planned expansions in the metro area because of the credit crunch.
The YMCA of Metropolitan Denver says memberships are down 3.5 percent this year, and officials at the South Suburban Park and Recreation District’s three recreation centers say less people are going to their facilities.
Sandy McClain, director of membership and marketing at the YMCA, said people are trimming their budgets and keeping only necessities.
“While we like to think we’re a necessity, it doesn’t always pan out that way,” she said.
Life Time chief financial officer Michael Robinson told The Denver Post the company is lowering enrollment fees and increasing its marketing spending.
Robinson said people are now quicker to cancel a gym membership they rarely use.
“When somebody looks at that Visa statement and they know that times are tougher, they’re making a decision a little bit quicker to leave the club if they’re not utilizing it,” he said.
Even so, he said people who attend the gym frequently have continued the habit and are showing up more than ever.
Life Time, which has upscale clubs in Parker and Westminster and one in the works in Centennial, reported last month that memberships grew 13.2 percent during the last year, but posted just a 4.9 percent increase in third-quarter enrollment fees.
Meanwhile, the company’s marketing costs grew to 3.7 percent of revenue from 3.2 percent.
Denver clubs Bally Total Fitness, 24-Hour Fitness and Colorado Athletic Club are all offering membership discounts.
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Information from: The Denver Post,
