Bethany Dindorf
Mr. Reuter
Econ A3
4 January 2016
New Year, New Me
Every New Year, almost every individual resolves to better themselves in some sort of way. These New Year's resolutions can be fun to make, however, they are hard to maintain and typically aren’t permanent. I’m sure one of you has already made this resolution for 2016 as it is the most common New Year resolution made: to become fit and healthy. Although cutting out delicious, unhealthy food and finding motivation to hit the gym can be punishing for some, the local grocery stores/markets and gyms absolutely love this time of the year as their profits flourish.
Investments in gym memberships throughout the month of January significantly spike due to wanting to get in shape for the new year. However, how long do these memberships really last and how does this affect the gym? According to the International Health, Racquet & Sports Club Association, nearly 50% of all new health club members quit within the first six months of signing up. When March comes around, new member attendance has diminished. Many fitness clubs do not mind the eventual lack of attendance because they get their money, even if you don’t show up. Because there are so many clubs in the area, there will definitely be some competition between these facilities. Most clubs see the trend of after a few months not using the facility. Because people get tired and lose interest, gyms try to sign you up for a yearly program, just to get your money. The job market of fitness centers definitely peak this time of the year as the new year greatly influences the fitness clubs demand. Although the amount of users will decay for a few months, attendance will spike again in a few months as individuals want summer “beach bodies”, or some will substitute working out in a gym and go outside for a nice run.
Grocery stores are jam packed as well at the start of the year. Everyone tells themselves that they are going to start eating clean and making homemade meals, rather than going through a McDonald's drive thru or eating out a couple nights a week. Not only do gym memberships rise at the beginning of the year, but so do grocery stores. The second day of the new year, I went grocery shopping with my mom at Good Harvest. I noticed the large amount of people shopping organically and healthy to start the new year off right. However, eating clean from grocery store and health food products won’t last long. Groceries are expensive, especially if the desired fruit or vegetable is not in season. Grocery stores will make a large profit and the demand will be at a peak for a few weeks until people slowly start going back to their old ways.
New Year's Resolutions have positively impacted the market not only for consumers, but suppliers as well. At the beginning of each new year, people decide to hit the gym to try to get the body they’ve always wanted, however this goals does not last long due to lack of motivation and laziness. Fitness centers and health stores get richer this time of the year and make their highest profits now.
Works Cited
"Chart of the Day: Retail Sales at Grocery Stores vs. Restaurants - AEI." AEI. Web. 5 Jan. 2016.
"New Year's Resolutions Boost Gym Memberships." New Year's Resolutions Boost Gym
Memberships. Web. 5 Jan. 2016.
"What Percentage of New Gym Members in January Stop Coming after February?" - Quora.
Web. 5 Jan. 2016.
Hey Bethany! I loved the post, it was probably the most interesting posts of the year. The pictures were also hilarious, however I wish you would have stated the real number of gym memberships in December vs after new years. Thanks for the post. Tyler Hull-1/7/2016
ReplyDeleteI really like the concept and the pictures. I also find what you said to be really true, it is really hard to keep eating healthy or to keep working out. After I quit wrestling I had no incentive to work out and because of that I just don't work our at all.
ReplyDeleteIt would be beneficial for gyms to do memberships by a couple of months at a time and not just one month at a time, so they can ensure that they are still making money even though people stop going after a month or two! As for the grocery stores, this is a really good thing because grocery stores really never go out of demand because it's something everyone needs. For fast food places however, I wonder if this puts a dent in some places because of the tendency to be healthier at the beginning of the year.
ReplyDeleteI have noticed that there is quite a difference in the price of organic foods versus non-organic foods, therefore stores that sell these types of healthier foods will gain more profit if more and more people resolve to eat healthier. The consumer has to spend more money on organic foods to make meals at home, but eventually they end up winning because they’re sticking to their resolutions. Gym memberships are paid (usually) by the month, which means they will definitely have many more gym memberships being purchased or continued in the beginning of the year due to resolutions. Lots of companies and brands benefit from people’s resolutions, but there are also places that don’t, such as the fast food places that people are replacing with healthier foods.
ReplyDeleteI think it's so interesting how the majority of people who make the new year's resolution to become fit end up giving up just a few months - or less - into the year. I also bet these people who wish to become fit have this same resolution every single year, but rarely have the motivation to make this their lifestyle for an entire year - or even a lifetime. In January and February I completely avoid going to the gym, simply because I know it's going to be overly crowded with the new year's resolution people who are desperately trying to start the year off right. However, I have definitely seen a decline in people once March rolls around, so that fact is completely true. Very interesting topic and the pictures add a really nice touch!
ReplyDeleteI wouldn't doubt that fitness resolutions are the most common goals of every new year. Fitness facilities could definitely use this trend to advertise around the time of the holidays to peak consumer interests. Including a graph of gym membership purchases or gym attendance rates would have been great evidence of the rising demand for health facilities in the beginning of the year. Overall, the new year is a time where people are highly motivated, and fitness centers are definitely one of the most popular stops in this time of resolution.
ReplyDeleteTotally true!! The amount of people that signed up this month to the gym I go to is crazy, and most of the people I asked, told me they where there because they wanted to loose the weight they gained over the holidays. Yes it's normal, after all we all like to have a good start of year, we're all worked up about accomplishing our resolutions and all that. The problem is to keep that mentality for the whole year, mean while gyms and grocery stores will enjoy all this extra income for a few months.
ReplyDeleteIt is not surprising to see the spike in gym membership sale come the new year. This can because mainly by the fact of new year's resolutions and the companies playing to that by providing “ amazing deals” Consumers are heavily influenced by the media telling them that the new year is the correct time to start getting in shape. Consumers see the opportunity cost in getting a gym membership when they are cheaper because they spend less money.
ReplyDeleteDefinitely, people try to get in better shape to start the year off right. Sadly, unless they really make a change and have the will power to stick to it, they will always fall short. I disagree that these resolutions help both the supplier and the consumer. The consumer definitely has the better half of the deal because even if consumers give up on their resolutions, the gyms and grocery stores still make money off of what the consumer has bought but won't end up using.
ReplyDeleteIt's not surprising that gyms have a growth in membership around this time, and it's great for them but it would be even better if the members decided to stay for the rest of the year. The gyms should encourage making a plan for the new members about their resolution because a lot of people just say they want to become healthier and join a gym but no thought beyond that, so then once the initial motivation is gone they have no desire to go anymore and they won't. But if they had a plan to go specific days of the week they cold feel obligated to go.
ReplyDeleteIt is not a surprise that gyms and grocery stores make more money after the new year. Most people think they are going to get in shape and do for a while and then they just loose the urge to go to the gym or cook a healthy meal. I like how this topic is relatable to almost everyone that made a new years resolution. Personally I think you should have added the gym membership increase, unless you couldn't find it. By the way The pictures were pretty funny.
ReplyDeleteThese New Year's resolutions cause an increase in demand to places like gyms and grocery stores. When I went to the gym a few days into the New Year, it was packed and there were no empty machines to use, contrasting to what it was like a few weeks before that. This proves that not only were you correct, but it is true that the demand will eventually decrease as people become discouraged and lazy and fall back into their normal ways. In addition to this, stores and companies will also increase advertising of their healthy options both making commercials and placing the healthy stuff in store windows hoping to draw people in.
ReplyDeleteI believe that the companies (i.e. gyms and grocery stores) benefit the most after new year's. Everyone is excited to start the new year of right by eating healthier and working out more, thus many, many people are spending money on gym memberships and fresh produce. Gyms know of the New Year's cycle, buy a membership and quit a month later, so instinctively they put restrictions on the memberships, so that costumers have to pay for several months before they can quit. This enables gyms to profit more and buy new equipment with out losing money. For grocers, they increase the price of produce slightly, knowing that consumers want healthy items, thus profiting more for being in demand.
ReplyDeleteNew Year's resolutions definitely have a huge impact on the economy. The effect of these resolutions is something I even see at my job. At Walgreens, we have put up a whole display in our promotional aisle containing daily fit planners and nutrition fact trackers, food scales, and weight scales, all because of "get fit" resolutions. I'm sure other stores, such as Walmart, are also increasing the supply of their fitness products to meet the rising demand. Stores like Dick's Sporting Goods and Sports Authority also likely have seen an increase in sales.
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