13 Why is there an annual fee at Planet Fitness?
Why is there an annual fee at Planet Fitness if you are no longer locked into an annual contract and are paying month by month?
Gyms are notorious for coming up with different ways to charge you as often as they can and making it as difficult as possible to cancel or even to get some straight shooter answers.
It would make sense that you wouldn’t need an annual fee, but according to them, it’s for new equipment and upkeep. So you have to beat them at their own shit game and cancel your membership right before you get charged the annual fee. Remember to give yourself about 7–10 days to cancel because you are cancelling on the same day. That makes TOO MUCH sense. Guess what you get charged during that 7–10 day cancellation period. That’s right, they sneak in the annual fee for one good ramming for the road. If not complete, then at least half the annual. They don’t care as long as they get something out of you. Also, 🖕🏻🖕🏻 if you were one of the people who gave my phone# away to 24-hour Fitness back in the day so you could get a “free pass”. They still call me once every three months. Those brown holes
What month does Planet Fitness charge its annual fee? The fine print keeps changing to the next month each time I look on the website.
The fine print keeps changing because it’s based on when you sign up. The annual fee is first charged within 60 days of your sign-up, on the first of the month. And it will stay that first of the month for however long you have the membership. So if you sign up in June, your annual fee is due August 1 and will stay that day for however long you stay a member. Sometimes, if you change your membership (upgrade or downgrade), your annual fee may change. In this case, it will stay the new day until you either change your membership again or cancel.
Regardless of when you sign up, your annual fee is always charged on the 1st of the month, and your monthly fee is charged on the 17th.
What month does Planet Fitness charge its annual fee? The fine print keeps changing to the next month each time I look on the website.
Planet Fitness offers membership at a low price, such as Planet Fitness’s Black Card membership, which costs $ 22.99 per month, while the classic membership costs $ 10. In contrast, Planet Fitness’s No Commitment Membership costs $ 15 per month.
How the hell does Planet Fitness make any money!?
I’m very qualified to answer this as my dad is a franchisee of 11 Planet Fitness gyms. Pete has the best answer here. Planet Fitness’ target market is the 80% of the population that has never been to a gym before. Each gym has, on average, 6300 members. There are two types of memberships offered, one for $10 a month and one for $19.99, so on average, let’s say the total revenue per member is somewhere around $15; on top of this, there is a $29 annual fee paid by each member. So you have $100,00 per month just in monthly fees, then another $200,000 in annual fees. IMO, they are revolutionizing the fitness industry, and their margins are incredibly high. The only actual high expense is equipment, which must be replaced every five years. But these gyms are pulling in 30% net profit margins, which is unheard of in this industry. Hope this helps
How the hell does Planet Fitness make any money!?
Planet Fitness has a brilliant business plan. Their entire marketing angle focuses on a “comfortable, judgement-free workout environment”. They continue to fortify this concept by adamantly harassing the typical meathead (who wears jeans, beanies, and tiny tank tops to the gym), therefore removing the threat.
Since their target market is (no offence) obese, low-confidence, pseudo-gym-goers who won’t go to the gym consistently, they reap the benefits of having a potentially huge client base of people who are paying $10 per month to NOT GO to the gym.
The concept of only charging $10 is critical to this idea. If it were even $20, most people would cancel the membership once they realize that they won’t go consistently. $10, though, is a small enough amount of money that can easily be forgotten about on your monthly credit card bill.
How the hell does Planet Fitness make any money!?
Think of it this way. Say you have 1000 members paying $10 each, but you only need 50 pieces of equipment because they show up at different times or, for most, not at all. The equipment lasts four years, and you get it wholesale for $2000 per.
In those four years, you will have grossed $480,000. Equipment was $100,000. The rent was about $200,000. Employees, insurance and other bills were $200,000.
This scenario shows a slight loss, but some customers buy platinum plans and the like, getting you over the top.
Planet Fitness has a formula that works.
How do gyms like Planet Fitness make money at $10 a month?
Gyms make a ton of money simply because they only pay for essential building and equipment maintenance, AND they know you probably won’t show up to use it. Some other fun facts that I learned while managing/coaching at a large box gym:
- It is really cheap to rent a place to hold equipment that rarely fails. Places with nothing but free weights have to pay someone to clean. (Think Crossfit.)
- Less than 10% of people who have memberships use the gym. This means if you can run a gym on the dues of the 10% alone, you are making a 90% margin before you need to pay for building and equipment maintenance.
- About 10% of people buying gym packages also buy expensive, monthly personal training packages for hundreds of dollars a month.
- Less than 10% of people who have personal training packages use personal training. This means that if you sell a lot of training packages, you significantly increase your profit margins without having to employ more people to train clients.
- If they do sell a 240-dollar-a-month package in exchange for, say, 8 – 30-minute sessions, the gym is usually paying the trainer $6 per session or $12 per hour. This means if the gym sells ten packages at $240 per month, they are making a 3,302 dollar profit before building maintenance.
How did I come up with those numbers?
One hundred members have to pay $10 a month in order to sell ten training packages, so there is $1,000 in monthly dues.
$240 training sessions X 10 = $2,400
Minus $5 for each package sold paid in commissions – yes, it can be that low, for a loss of only $50
Minus eight sessions X $6 each, because only 1 out of 10 of those packages purchased will actually show to workout with a trainer.
The gym pocketed $3k, and that isn’t even a day of work. Some of the gyms I worked in had 15,000 monthly paying members, using the same scenario. And most of those gyms had dues upwards of $50 a month, not $10.
A HUGE amount of this money comes in January. That is when people flood the gym with New Year’s Resolutions, buy expensive memberships and packages, give up on their goals within the first 30 days, and don’t visit the gym all year because of simple embarrassment.
I should have mentioned the money made from yoga classes people do not attend, spin classes people don’t show up for, or any number of classes a gym could have with a monthly due involved.
What is the lesson here? There are two:
- Gyms make a lot of money because out of every 100 people paying for something, only 10 or fewer are using any of it.
- A lot of that money is profit because people need to stick to their health and fitness goals.
P.S. – After I read this to my mom, she told me a story of how her old employer got a cheap $9 per month rate for the 1,600 employees at her old company. She also mentioned how they complained about and eventually cancelled this benefit after five years because only 25 total employees used the benefit. That is $824,000 paid to a gym over five years with only $13,500 of the benefit used.
That is just one employer. Think about that.
What’s really cool, though, is one of my brands allows someone to receive revenue like they own multiple gyms without having to own anything at all.
How can Planet Fitness afford the bills with a $10 monthly membership?
Just a guess here
With low fees and the “everybody” marketing, they pull in as many people as possible who aren’t really fitness fanatics but people who want to go through the motions. People who can surround themselves with other people who are like them and are intimidated by people who look like they’re in shape or do loud, complex lifts.
The Planet Fitness near me has one set of every machine lift, a weird set of stretching calisthenic apparatuses, and a bunch of treadmills. Everything is spotless…because it’s never complete.
Some interesting general gym facts: half the people who have gym memberships go on a regular basis. Gym owners expect that only 18% will be regulars and often have to book ten times the number of members as will fit in the club at any time to pull a profit. I’m guessing Planet Fitness’s numbers are far more skewed than that.
Update: I just took a look at their site; they have the $10 plan that gets you in the door at a single club and lets you work out. Then they have the $20 plan that gets you in any club and lets you:
- workout
- tan
- cheaper vending machines
- massage chairs
- other benefits depending on location.
- Membership Types
On top of that, the only classes that most of the locations offer are general weight training classes: “This is how you work chest, this is how you work shoulders”, etc.
They also have a marketing machine, charging tons of money for cheap exercise crap like bags and towels.
My guess? They charge $10, but most people go for the $20 package instead of using it. The $20 package is a little less, but it gets you a ton more in little check boxes on their types webpage. People are suckers like that. Everyone rolls in, buys up $20 packages and then doesn’t take advantage of it, so they’re making double what I assumed above.
People stay members longer than at regular gyms (5-month average) because it’s so cheap and fewer people than most gyms usually go. As a result…the bills get paid.
How can Planet Fitness afford the bills with a $10 monthly membership?
As Bart Loews says, I have only an educated guess. I agree with his position that only some people are going to take advantage of that $10 membership, thereby subsidizing the cheap memberships of those who do.
I do know, however, that some people sign up for this $10/mo benefit to take a shower. They’re homeless. They live most or all of the year in cars or on the street. Even a homeless person can afford $10 to use a toilet, shower and shave, and sauna. (Do they have saunas?)
Are monthly membership fees waived for specific individuals at Planet Fitness?
Planet Fitness is a franchise, so the policies for waiving monthly membership fees may vary depending on the specific location. In general, most Planet Fitness locations have a policy of waiving the monthly membership fee for specific individuals, such as active duty military members, first responders (police, fire, and EMTs), and full-time students.
In order to have your monthly membership fee waived, you typically need to present a valid ID or other proof of your status as an active-duty military member, first responder, or full-time student. The club may ask for specific documentation such as ID cards, badges or student IDs.
It’s worth noting that some locations may also offer waived fees for specific individuals with financial hardship or disabilities or have special programs or promotions that waive the monthly fee, depending on the location. It’s best to check with your local Planet Fitness club or its website for the specific policies that apply to your location.
How much does it cost to join Planet Fitness? Is there a monthly fee or an annual membership fee?
$10/month + signup fee from .25 to a few dollars + $40 annual fee. They also offer a black card membership that’s $25/month. The black card gets you access to Planet Fitness gyms nationwide, discounts on drinks and swag, access to the tanning booth and the water table massager, and video on some of the machines like steppers and treadmills.
Why is Planet Fitness cheap compared to other gyms?
Because they market to people they know won’t show up.
Those” no lunkhead” commercials are meant to drive out people who actually lift in favour of people who never go.
They only have a little equipment, and the fact that no one comes keeps maintenance costs down.
They sell way more memberships than could ever fit in the gym.
People look at the cost and don’t figure it’s worth it to quit because: hey, I might go someday.
What is the early termination fee for cancelling a Planet Fitness membership before the end of the year?
Planet Fitness’s yearly fee
Planet Workout is American amateur gym enthusiasts’ most popular workout location. Additionally, they currently have a staggering 15 million+ subscribers nationwide.
The fact that Planet Fitness offers a judgment-free workout atmosphere and, of course, memberships at reasonable rates has made it a well-liked destination for fitness enthusiasts.
Planet Fitness Membership Cost
A basic Planet Fitness membership costs as little as $10 a month and has higher plans. You may not find a cheaper gym membership at any other club.
Planet Fitness only charges an annual fee to its customers in addition to the reasonable monthly rate. Like most other gyms, Planet Fitness does charge a yearly fee.
How much would the annual charge cost you, then? They advertise as a cheap gym, so why do they charge a yearly fee? And you might have a few other questions about the annual price of Planet Fitness.
To support you in this, we’ll walk you through everything you need to know about Planet Fitness’s annual dues and more in this post.
Is there an annual fee for Planet Fitness?
Yes, Planet Fitness has an annual membership fee. Most of the cost will go into developing other facilities or purchasing, maintaining, and updating the equipment.
You may always speak with the front desk staff at your local Planet Fitness club for more information on the annual cost; they will provide all the necessary details.
What Is Planet Fitness’ Annual Fee?
At Planet Fitness, a yearly membership typically costs $39. All membership types, including the black card, classic, and no-commitment membership, have the same annual price.
What is the cost of a Planet Fitness Black Card annually?
You must pay the $39 yearly for the Planet Fitness Black Card eight weeks after joining the facility.
Does Planet Fitness impose an annual fee?
Yes, Planet Fitness has a yearly membership fee. The annual charge is now $39, but they reserve the right to change it in the future.
In most clubs, the annual charge is the same. So, call your organization to find out about any revisions to yearly fees.
When will Planet Fitness impose the annual fee?
Eight weeks after you join the club, Planet Fitness charges the annual fee. Therefore, it makes no difference when you sign up, or, to put it another way, there is no set time when Planet Fitness invoices the annual cost.
Some of you may thus be considering delaying your enrollment until “the annual fee billing date” to save $39 on your membership. But that will not work. The gym will charge your annual subscription eight weeks after your joining date.
Why do they charge an annual fee at Planet Fitness?
Planet Fitness’s annual membership fee primarily aims to upgrade the facilities. Adding new equipment, maintaining the ones already there, upgrading other amenities, etc., are all ways to improve the gym facilities.
Final Reflections
The annual cost of Planet Fitness is $39, which is equivalent to your $10 monthly fee for four months (assuming you choose the basic membership). If you rigorously adhere to a budget, the annual cost could be excessive.
However, except for Planet Fitness, you seldom find a gym membership for less than $10. So, the annual Planet Fitness membership fee is reasonable.
Does Planet Fitness charge a cancellation fee?
Depends on your membership. If you signed up for a membership with a 12-month commitment and are still within the first year, you have a $58 cancellation fee. If you signed up for a no-commitment or have been a member for longer than a year, there is no fee. If you manage to catch a deal and pay a year in advance, you’re out of the money.
You have to either go into your home gym and cancel in person or send a letter. You have to go in, or they have to receive the letter by the 10th of the month to guarantee you won’t be charged for another month. If you try to cancel on the 11th-16th, there’s no guarantee you won’t be charged for the next month as the system is already preparing to withdraw the funds from your checking account.
Infrequent exceptions can be made. I had a guy cancel over the phone after he moved to Thailand and forgot to cancel before he left. Also, if you’re on the fence about signing up because of the commitment and cancellation fee, SOME (not all) managers will waive the fee, and a note will be made in your account saying you have a ‘no commitment’ membership.
Does Planet Fitness charge a cancellation fee?
If you have a membership with a 12-month commitment and you want to cancel the membership prior to your twelfth month or billing cycle, then yes, the cancellation fee is $58 (I haven’t worked for the company in a little over two years, but I somehow doubt they would have increased it). After the twelfth billing cycle, your membership converts to month-to-month, and you can cancel for free. The same goes for memberships that do not have a minimum term (typically the $10 membership).
How does Planet Fitness only charge members $10/month and remain a profitable business, while most other gyms quickly charge 3-5x more?
They run on the model of being geared towards first-time gym goers or people who need to be more motivated to stick it out for long. They want people to sign up and not cancel their memberships when they quit going to the gym. The location I work at has over 8,000 members, but pre-Covid, we maybe saw 800 people in 24 hours during our busiest seasons (New Year, late Spring for “Swimsuit Season”, late fall when it’s too cold to work outside). 75% of our members hadn’t stepped foot in the gym in a couple of months. I once had a woman call up to ask about her father’s membership (she wanted to try to move it to her name) and saw it was still active despite him not coming in over six years. He just kept paying the $10/mo because he didn’t want to go through with the hassle of coming in to cancel.
How does Planet Fitness only charge members $10/month and remain a profitable business, while most other gyms quickly charge 3-5x more?
Because you get what you pay for? Now, I’m not in America, but assume Planet Fitness is like the pure gym in the UK, which has a £10 a month membership fee; for that, you get 24-hour access to any pure gym in the country that you know ain’t bad they have all the essential equipment and some free weights.
My gym membership costs me £50 a month. It is smaller than virtually every pure gym, but it doesn’t get nearly as busy, it has all the same gear plus a few other bits that are more specialised, it has a swimming pool, steam rooms and sauna, has free access to any of several classes run by personal trainers and several personal trainers on site all week if you’ve got any questions about your work out, it also has on-site physiotherapists on-site private practice gp… and that’s all I can remember off the top of my head
Why does Planet Fitness need to charge members an annual fee every year? When you first sign up, you pay the upfront fee of about $49 (USD) and then the monthly fee of $10/month. But why do they need to collect $49 every year after that?
Planet Fitness, like many other gyms and fitness facilities, charges an annual fee in addition to the monthly membership fee. While some members might find this practice confusing or frustrating, there are valid reasons behind it. To understand why Planet Fitness, or any gym, needs to charge an annual fee every year, we should consider several factors.
- Maintenance and Upkeep: Gyms, including Planet Fitness, require constant maintenance and upkeep. The equipment, facilities, and amenities must be kept in reasonable condition to ensure a safe and comfortable environment for all members. The annual fee contributes to the cost of maintenance, including cleaning, equipment repairs, and general facility upkeep.
- Operational Costs: Beyond maintenance, gyms have other operational costs. This includes paying the staff, utilities, insurance, and rent or property costs. The annual fee helps cover these expenses and keep the gym running smoothly.
- Profit Margins: Gyms, including Planet Fitness, are businesses. Like any business, they need to generate profits to stay afloat and invest in improving their services. The annual fee adds to their revenue, allowing them to invest in upgrades, expand their facilities, and provide better services to their members.
- Pricing Model: Planet Fitness, in particular, is known for its low monthly fees. The annual fee is a way to maintain this low monthly cost. By distributing some of the expenses to the annual fee, they can keep their regular fees competitive and appealing to a broader range of potential members.
- Member Commitment: Charging an annual fee can also serve as a way to ensure that members remain committed to their fitness goals. The psychology behind this is that people are more likely to stick with their fitness routine if they feel financially invested in it. The annual fee can serve as a motivator for members to use the facilities regularly and get value for their money.
- Preventing Overcrowding: Gyms need to strike a balance between providing access to their facilities to a large number of members and preventing overcrowding. By charging an annual fee, they can discourage members who may not use the gym frequently from joining, thus ensuring that the facilities are available to those who are more committed to their fitness journey.
- Membership Retention: An annual fee can also help with member retention. When people pay an upfront fee in addition to the monthly fee, they are more likely to continue their membership to get the total value of what they have paid. This can reduce the churn rate and help gyms maintain a stable member base.
- Discounted Services: In some cases, the annual fee is a way to offer discounted services or perks. For example, Planet Fitness may use a portion of the annual fee to provide benefits such as free fitness training sessions, tanning, or massage chairs to its members.
- Marketing and Promotions: Gyms often use the annual fee as part of their marketing strategy. They may advertise low monthly fees and highlight the annual fee separately. This marketing approach can make their pricing structure more attractive to potential members.
- Cushion for Unforeseen Expenses: An annual fee can also serve as a cushion for unforeseen expenses or economic downturns. Having this additional revenue stream allows gyms to weather unexpected financial challenges and continue providing services to their members.
- Aligning with Industry Standards: The practice of charging an annual fee is expected in the fitness industry. Gyms often benchmark their pricing models against industry standards and best practices to remain competitive.
- Transparent Pricing: By breaking down the costs into a monthly fee and an annual fee, gyms can provide more transparent pricing to their members. Members can clearly see the annual cost of their membership and understand what they are paying for.
- Cancellations and No-Shows: An annual fee can help cover the cost of cancellations and no-shows. Members who sign up and then cancel shortly afterwards can still impose costs on the gym, including the administrative work required to process cancellations.
In conclusion, the annual fee charged by Planet Fitness and other gyms is a multifaceted practice with various motivations. It contributes to covering operational costs, maintenance, and profits while serving as a marketing tool and encouraging member commitment. While it might be seen as an additional cost, gyms need to maintain their facilities and continue providing services to their members. Understanding these reasons behind the annual fee can help members appreciate the value it brings to their fitness experience and the sustainability of the gym’s operations.
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