Every January, it’s packed in the gym.
Scant space. Claustrophobia central.
Also known as: Sardine January.
The gym business model is crazy. Since I learnt about it, I have yet to come across another one like it.
“Let’s sign up tonnes of people in January, and make our money when most of them don’t turn up for the rest of the year but continue to pay,” said the honest gym owner.
Under this model, members who don’t use the gym subsidise the ones who do. All gym owners have to do is get through a packed and miserable January.
But February is just around the corner. When resolve wanes, the gym will go back to being a pleasant, spacious place.
And for those keen to continue their gym streak, they’ll get a cracking, subsidised deal.
There is no deeper lesson or idea here, it’s just a fascinating look into a weird business model. Although, I am left with a question: does a better gym business model exist?
Note: I listened to this excellent Planet Money podcast episode last year on this topic (for those interested in learning more). It was only when I couldn’t comfortably make my way round the gym this past week that I decided to write on the subject.