How does this benefit–sacrifice ratio give Planet Fitness a competitive advantage in its industry? Planet Fitness: Pricing for Success22 How does going completely against the grain of a typical fitness club strategy lead to success? That’s the question that Planet Fitness appears uniquely positioned to answer. Most health clubs provide members with vast and seemingly valuable extra amenities such as child care, juice bars and protein supplements, on-staff professional trainers, and a broad range of fitness classes.23 But many customers find the prices too high because they see little value in some of these amenities. Further reducing the value of traditional gym memberships, many consumers regard the social aspects unpleasant and offputting—whether that means observing others with nearly perfect bodies posturing in the mirror or listening to grunting exercisers huff with every lift.

While its competitors target upscale fitness buffs working on their six-pack abs, Planet Fitness successfully pursues an entirely different market: those who do not really enjoy going to the gym but know they need to do so to stay healthy.

These exercisers are unlikely to hit the gym five or six times a week, making conventional gym memberships, which demand yearly contracts and fees of $49 to $95 per month, appear more expensive on a per-visit basis. Planet Fitness’

formula is different: At $10 a month, the membership offers good value even if customers get to the club only a couple of times each week.