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In December, as I was looking at my receivables for January, February, March, I decided it was time to implement an austerity plan. It included putting my membership at Lifetime Fitness on hold with the hope that once things improve, I will reinstate. This was not a decision I made lightly.
But, between my travel schedule and the fact that I can technically workout at home-- I have a body bars,DVDs's,a Pilate's machine, bands,exercise balls and the requisite yoga equipment--it seemed like a good idea at the time.
If I were judging the decision based on my budget alone it has been a smart financial decision. But, if I am judging the decision about the amount of time I have devoted to fitness -- not so good.
As disciplined as I was in going to the gym and taking classes, I am equally as undisciplined when it comes to doing the same exercises at home.
Mickey, at No Pink Dumbbells,who owns a fitness center, says I have it all wrong.
I’m totally confused by some people’s priorities. Healthy, fresh food is “too expensive” but they eat out multiple times a week. A $20 - $40 gym membership gets the ax but they continue to pay over $100 for cable TV. People are absolutely entitled to spend their money any way they see fit but shouldn’t health take precedence?
Getting and staying fit should not even be close to the top of the list of budget cuts.
Folks in New Zealand share Mickey's approach to budget cutbacks. In a recent survey by MasterCard Worldwide on what spending consumers were willing to cutback on, fitness and wellness scored a high "Consumer Purchasing Resilience"
The research shows that New Zealanders view spending on categories such as fitness and wellness and personal travel, which rates second, as more important categories than, say, fashion and accessories, where we scored a lower Resilience Index (38). We will be interested to see whether this category retains its inelasticity in these uncertain times.”
Fitness Centers usually see a spike in membership in January and February. This year, many are reporting that membership numbers are "stagnant." And,there are a couple of studies which indicate these businesses -once considered recession proof-- should be concerned.
Susan Reda, Executive Editor for an on-line marketing news service, NFR's Stores, recently released a report on a study conducted by BIG research and Stores called,
"Cash Strapped Customers Are Cutting Back on (Almost Everything." The report provides information on what consumers say they must keep in this economy.
Writing about the report on the Wharton Website Marketing Blog,Christi writes that many businesses are making the mistake of building their business models on consumers' attitudes from three years ago.According to the report, three years ago most median income households believed the best way to stay in shape was to join a fitness center.
But as this study points out, guess what consumers have decided isn’t as important anymore? You got it…they can save money by:
* not renewing their membership to the fitness center and just work out at home,
Opinion Research and Anytime Fitness( a low cost alternative exercise facility also released a report on the state of consumer's commitment to fitness centers.
A recent consumer survey found that 60 percent of fitness club members nationwide plan to keep their memberships despite the economic downturn. The survey, conducted by Opinion Research Corp. and Anytime Fitness, a national fitness chain, also found that 23 percent plan to join more affordable gyms, while 17 percent will drop their memberships.
For that 17 percent who feel they can't afford to keep there membership there are now a slew of new on-line opportunities in addition to the traditional DVDs to workout with includingpodcasts for Pilate's and Credit Crunch Yoga.
Meanwhile fitness centers are offering promotions to attract new members. So far they don't seem very different than promotions that they've used for the past several years. A fitness chain in New Orleans is offering a free week - that is something I've definitely seen clubs do in good economic times and a quick look at my own fitness center shows their specials are pretty much in line with what they offered me when I joined several years ago -- no initiation fee.
What about you? Are you keeping your membership? Are you using your membership? Or, to save money,are you going to make some changes.
Elana writes about business culture at FunnyBusiness
