3 Jan 2016
New Year’s Resolutions
Everyone wants to start the New Year off right. We all make our New Year’s resolution to improve something about ourselves. Whether it is to volunteer more and help others, go to college or find a job in someway we make a promise to ourselves to improve.
One of the most popular resolutions is to get fit. The first step to getting in shape is to work out and to do this many people decide to get a gym membership. In January of every new year, it is estimated that this is when about 30-40% of new gym memberships begin. Because of these resolutions the second week of January is the busiest time of the year for gyms.
Since getting in shape is in demand, workout facilities need to make sure that they have all the equipment needed to supply to the people. While many people have resolutions like this to get fit, in many cases they actually don’t follow through and end up dropping out be the end of February. This cases a spike on the demand side but then quickly it lowers again. When there is a quick demand, gyms invest money into improving the equipment but it doesn’t take long before people end up ending their membership.
In the end, with everything there is always an opportunity cost. When someone makes the resolution to get fit but they need up wasting their money on a gym membership they don’t use. On the other hand, when someone signs up for the facility, the gym then feels they have money to invest but really once the people with new memberships drop out, they will lose money as well.
"What Percentage of New Gym Members in January Stop Coming after February?" - Quora. N.p., n.d. Web. 04 Jan. 2016.
Feature, Neil Osterweil WebMD. "New Year's Resolutions: In One Year, Out the Other." WebMD. WebMD, n.d. Web. 04 Jan. 2016.