NEW YORK — January is for fitness centers what December is for retailers: a bad month makes for a bad year.
And with people spending less and less likely to overindulge this year, some in the fitness business are working harder to make sure they don’t find themselves on the ropes.
“We’re all kind of holding our breath,” says Ben Quist, co-owner of Form & Fitness in Grafton, Wis. He said while his club hasn’t seen a decline in memberships, he is a little nervous. A third of the club’s annual revenue is from new memberships in January, he said.
“You never take anything for granted,” Quist said. “These next three months, I need to take in a handsome chunk of our revenue.”
Historically, January is the single biggest month for new membership enrollment at health clubs, according to the International Health, Racquet & Sportsclub Association. Many fitness centers introduce some of their best deals, hoping to entice new members and lock them into a year-long or even longer contract.
The number of gym memberships dropped 3 percent to 41.5 million between 2006 and 2007, according to the association. At the same time, the number of fitness centers increased.
There were 29,636 commercial fitness centers in 2007, up from 29,357 in 2006, according to the association. And in most big metropolitan markets, every commercial fitness facility has 10 to 25 competitive fitness operations within its prime target area, the association reports.
Attracting consumers
Health club memberships tend to skew toward those earning $50,000 or more, who are not the hardest hit by the economy, according to David Lockwood, director of research at Mintel, a market research firm.
But almost all consumers are cutting spending across the board, and for people with lower incomes, a gym is very likely a first cut, he said.
“We have to assume that the ‘New Year’s Resolve people’ who join clubs en masse in January and others who do so for winter months will be fewer in number this year because of the economy,” Lockwood said in an e-mail.
In part because of the economy, Curves International deepened its discount for new members, according to spokeswoman Kathy Carr.
The original deal was 30 percent off and the first 30 days free.
Now, members who sign up between now and and March 6 get 50 percent off the initiation fee, in addition to the first 30 days for free, Carr said.
And to retain members, Quist, of the Wisconsin club, is offering a month of free semi-private or group personal training sessions to new members, then a reduced rate if they continue with them. He is also slashing the enrollment fee.
But because people have little time to work out these days, lowering membership costs may not be enough, says Cedric Bryant, chief science officer for American Council on Exercise. He said people are also looking for time-efficient workouts, such as boot-camp classes.
Sylvia Camacho, 53, a college administrator in Remsenburg, N.Y., said one reason she canceled her membership to The Firm Fitness in November was because she never used it.
“I started thinking about the time and money that it cost to be a member and me not making it there,” she says. “I figured it would be a good thing to knock off my budget.”
Ken Reinstein, 42, of Scottsdale, Ariz., said his family wasn’t going to Life Time Fitness enough to warrant the $157 a month fee.
He canceled the family membership in December and will use Scottsdale’s cheaper recreational services instead.
“I own my own business,” said Reinstein, who owns blue 22 pr, a public relations agency.
“I have had fewer clients at the end of this year. We definitely wanted to cut that $157 out of our budget.”
None of this is to say that fitness centers are obsolete, says Dr. Pamela Peeke, senior medical correspondent for the Discovery Health National Body Challenge.
Mintel, the research firm, has found that people who join health clubs like the community atmosphere and are quite loyal — even if they stray from time to time, Lockwood said.
“You can’t talk to that person in the DVD,” Peeke says. “It’s nice to have another human being who walks up to you while you’re lifting weights or is in that class for yoga.”
But she said health clubs will have to get creative.
Her suggestions: free lectures on stress management, workouts that focus on relaxation, discounts on massages, babysitting, monthly membership options and, of course, a slash in prices.
