Exclusivity in gyms and boutique studios is one of the most popular trends in the fitness industry this year. The intrigue of a curated community with flashy benefits, merch, private classes and the potential of spotting a celebrity at Pilates has been enough to make gym-goers crave this type of membership.
From an operations perspective with a members-only business model, members are less likely to freeze or cancel because they’re paying a premium. It’s also easier to manage costs, capacity and financial forecasting because exclusive brands tend to be less vulnerable to fluctuating demand. The concept works well in cities like Miami, LA and NYC where there are large populations happy to pay more: Members love the VIP experience, lavish incentives and privacy.
Luxury equipment and amenities are key for any gym or studio considering going exclusive. Multiple modality facilities offer amenities like massages, saunas, functional medicine and other recovery services. The prestige that comes with exclusivity also enables the facility to recruit top-tier talent, helping attract those wanting to train with the best in the business.
There are ways to adopt elements of exclusivity and avoid alienating potential customers. Some studios are experimenting with limited-time-only pop-up classes and other incentives like exclusive events, priority booking and access to popular classes and instructors. This adds intrigue and value and fosters loyalty without having to fully commit to members-only.
But exclusivity has its disadvantages. Limiting the customer base could breed resentment; there are higher up-front costs to establish a business; and premium-paying members have higher expectations when it comes to instructors, facilities, equipment, customer service and ancillary services.
Exclusivity for a fitness brand may be a good choice for those who have a strong community and enough resources to stimulate demand and deliver a premium experience; it is not for everyone.
Shannon Tracey is VP of Strategic and Enterprise Sales at Xplor Technologies.
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