Being required to sign a 12-month contract is standard procedure in the fitness industry. While it might seem like a good idea at the time, oftentimes it’s not long before motivation dries up, and you find yourself trying to break the contract and probably wondering ‘why do gyms make it hard to cancel?’
The truth is, gyms do this for a number of reasons. Some of them, unsurprisingly, serve their own interest, but you might be shocked to find out that these contracts actually benefit members as well.
Benefits of Having a Gym Membership That’s Hard to Cancel
When we think of gym contracts, often what we imagine are the owners of these facilities trying to squeeze every last penny out of their clients. And while this notion might not be far from the truth, getting members signed into longer-term contracts can have its benefits—not only for owners but members as well.
Benefits for Owners
Apart from a desire to keep members around for the long haul, gym owners push for yearly contracts because they provide several benefits. The biggest bonus for gym owners is consistent revenue and a certain level of stability. These contracts protect gyms from loss, help with bookkeeping, and allow owners to prepare for slower months by running promotions and offering discounts.
Benefits for Members
Committing to a contract can hold members accountable to their workout goals and prevent them from stopping their fitness journey altogether. These contracts help members stay motivated and see results by providing a sense of commitment. Additionally, selling long-term contracts allows gyms to offer lower prices for memberships, benefiting members by keeping costs competitive.
Shared Benefits for Members and Owners
By selling long-term contracts, gyms can offer lower prices for memberships, benefiting both members and owners. However, it’s important to ensure that the value provided justifies the commitment and upfront fees.
Negatives of Having a Gym Membership That’s Hard to Cancel
Although there are some positive sides to having gym contracts, there are also undeniable downsides.
Negatives for Owners
Relying on trapping people into long-term contracts as a business model isn’t sustainable or conducive to positive change. Owners should focus on creating an above-average member experience, finding the best teachers for classes, and consistently improving their business to retain members.
Negatives for Members
Many people sign up for gym memberships with the goal of making regular workouts a habit, but life’s challenges and changing circumstances can make it difficult to stay committed. Members should have the right to cancel without facing unnecessary obstacles or exorbitant fees.
So Which Is Really Better?
Using gym contracts to bind people to your gym is never a good idea, especially if done through deceptive tactics. No one wants to support a business that they feel has taken advantage of or trapped them. Focus on creating an above-average experience for your members and stand out among the competition.
If you feel like you don’t have time to focus on member experience, consider implementing a gym management software to streamline your business processes. Click here to learn more!