Mr. Reuter
Economics- A1
11/4/18
Fitness Centers and Their Cost
Many people of all ages like to take some time out of their day to exercise to stay healthy or shed a few extra pounds. A luxury that many citizens of the United States have come to use is private fitness centers or workout facilities because those places have a large rage of equipment to use and provide many accommodations that most people do not have at home. Additionally, it has been found that if one works out around others they will be more motivated to continue to workout. Personally I agree and find that statement to be true. I feel that I am held more accountable for actually completing a workout when I am at the gym, rather than just in my basement alone. In the last 18 years there has been an increase in the amount of people who use these facilities, but there has also been an increase in the cost of them.
According to Statista there has been nearly a double in the amount of gym memberships since 2000. This graph shows the number of gym memberships in millions each year since 2000. Clearly, there is a large population of Americans that spend the money to belong to the gyms and there is a demand to have them in all communities, but like all things the supply is limited, so the memberships tend to come at a high cost.
According to Carlo Dellaverson from CNBC the average cost of gym membership in the US is 40-50 dollars a month. As seen by the constant growth of memberships, people are willing to pay the high price. Also because of the constantly increasing demand, the price fitness centers have almost entered a price war with each other based on their offerings and plans. Centers know that there is a demand so they take advantage of it and try and lure the memberships in at what may seem to be a lower price, but then they add many additional fees to their plans. For example, you may have a basic membership, but then fitness classes or specific times at the facility cost more.
This is essentially a good thing for the United States because of the high rates of obesity that America tends to be known to have. More memberships across the board mean that more people are taking initiative to become fit. However, that is where the social inequality comes in. There are still very high rates of obesity in children and adults in lower income areas, that may be due to the fact that these fitness center memberships are pricey. The higher rates of obesity in lower income areas is most definitely due to many other factors besides the high cost of a fitness center, but it is still a factor since the people do not have the access to the equipment to help stay fit.
The fitness center industry is definitely a growing one because of the demand across the country placed on citizen by doctors and just the want to be fit and healthy. Many people do find it helpful to have the membership to hold them accountable for their workouts, so they pay the high price. Also, since the supply of nice fitness centers is limited the companies are able to increase their prices and make members pay quite a bit. This increase is a good thing but the question is the price worth it, leaves many pondering.
Works Cited
“Gym Memberships in the U.S. 2000-2017.” Statista, www.statista.com/statistics/236123/us-fitness-center--health-club-memberships/.
“Raising the Federal Minimum Wage to $10.10 Would Lift Wages for Millions and Provide a Modest Economic Boost.” Economic Policy Institute, www.epi.org/publication/raising-federal-minimum-wage-to-1010/.
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With the demand of gym memberships across the country and there ever increasing costs, I wonder if this could be a chance for home gym equipment companies to lower their costs. If the prices for gym equipment was cheaper, more people would build home gyms and therefore drive the prices of a gym membership down. But, clearly people want the memberships and the gyms are taking advantage of this, as they should. If they continue to drive prices up, people will still workout there because they like going to the gym.
ReplyDeleteAgastya Asthana,
ReplyDeleteI work out in my house without any gym membership. I practice lots of calisthenics which can have the same effect as lifting weights. Gyms should value their customers because they are the people who keep the business running and if they find out that they can get the same benefit at home by using just their body weight, they would consider that option which is free and fun. Calisthenics is more enjoyable because there so many things to do with just your body weight. If gym membership costs were to be reduced then it would allow more people to use the gym and get access add to their repertoire of exercises to perform.
If some fitness centers decided to lower their prices, I wonder if there would be even more interest in them. Most people may be able to spend $40-50 a month on a gym membership, however, those who don’t have as much money probably don’t count that as a necessity. By lowering the prices, more people would be able to buy memberships which would still get them a pretty high profit and a higher interest rate. People are also starting to make home gyms, so will that cause the price of the gym memberships to drop?
ReplyDeleteIs the increase of price really a good thing? For those in our country who are obese, would the higher prices not drive away those people who are on the brink of deciding whether or not they need to help themselves and get into better shape? Yes more people are buying gym memberships, we do not know what percentage of these people are obese. By raising prices with the increasing demand, we may also be turning away those who need it the most.
ReplyDeleteIt is very interesting to see the amount of people with gym memberships going up, especially when the obesity rate only seems to be getting larger. I think many people get gym memberships, but then commonly get rid of them after a very short period of time. I myself have 2 gym memberships, one for the rock climbing gym and one for the WAC. I always find it interesting how many people decide to show up at the gym at the beginning of January. It gets super busy and it becomes near impossible to find parking. This is because the demand for gym memberships increases a lot after new years because a lot of people's new year's resolution is to get back in shape; But then come February, and you are guaranteed to get a good parking spot and an open treadmill. The demand drops back down and people usually get rid of their gym memberships. Even when people do keep their gym memberships after January, less than half of them go to the gym regularly.
ReplyDeleteI loved reading this article and seeing how much it related to our past two lessons in Economics! Anyways, it’s crazy how local gyms are using this high demand to raise their prices in a large quantity. It makes sense but it’s sad how expensive it can cost just to try and remain healthy. A lot of people go to the gym to remain heart healthy and that’s it! Personally, I have a gym membership to keep in shape and I think they are very expensive. However, where I go it comes with a ton of amenities and the space is huge which makes me feel comfortable when I am working out instead of a small space surrounded by many people. I could see the high price because of everything offered at my gym. However, I think it’s crazy how expensive gym memberships are becoming!
ReplyDelete-Anika
I think your take on fitness centers was really interesting because I wouldn’t think that it affects the economy as much as it does. Fitness centers and gyms are constantly competing with each other on who has the best facilities compared to the price. A gym with the latest equipment will probably cost more than a gym with only a few machines, and it is up to the people to weigh the benefits and trade offs to pick a gym. I did disagree with you when you said that obesity is more common in low income areas because gym memberships are pricey. Exercise is free, and while a nice gym can help someone work out, it is not required.
ReplyDelete- gina
This article was written very well I like how you showed the competition between different fitness centers. I also never would have thought about how they can effect the economy. The only thing I wonder is if a price increase at gyms is really a good thing? There are many people who would love to be able to afford these gyms but can't. Wouldn't it be more beneficial to our country as a whole if we could all afford to be healthy? Other wise I thought your article was very good and informative of the economic point of view.
ReplyDeleteI agree with what you are saying, I have a gym membership that is very expensive each month to keep. Even though you can go whenever they are open, it is hard to make the most of the money you spend on memberships. Also most people don't have enough money to have a gym membership so they don't workout at all. There would be a great benefit to many teenagers and adults if the prices of gym memberships were lower. There would be less obese people and more healthy people.
ReplyDeleteI think that the social inequality aspect of this is very interesting in how economics affects obesity and health. In older societies, overweight people were usually rich and were envied by the poor, but as food giants begin to dominate the food industry and make their unhealthy products more and more attainable while making healthier products less attainable, the rate of low-level income families affected by obesity has skyrocketed. This paired with the inaccessibility to spaces and time to exercise has lead to the exacerbation of the rates of obesity in America.
ReplyDeleteThis is an interesting article to read, as it is very common nowadays. Families who belong to a health club have increased by 10% in the last three years, showing the rise in demand for gym memberships. Many ask the question that you were referencing, "is it worth the high price?", and when you think of all the possible opportunities that are present at most health clubs, they outweigh the cost. For example, many gyms also have things such as a basketball court, track, different instructed classes (yoga, pilates, etc.), and much more, which allow you to maximize your satisfaction at the gym. Therefore, personally I believe that gym memberships are worth the high price, and the economy seems to be moving in that same direction, as memberships are continuing to increase in demand.
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Most people choose a fitness gym membership for the benefits of a regular workout and the social aspect of being a member. In addition, being around others is beneficial for one's health and keeps one accountable for working out regularly.
ReplyDelete