Is there room in the marketplace for both small box and big box facilities?

Is there room in the marketplace for both small box and big box facilities?

Whether there is room for both I believe is one of the most important questions the industry will need to answer over the next five years. For many years we saw the dominance of larger athletic facilities and big box fitness clubs. However, over the past 10 or more years, we’ve seen a slight newcomer in the small box, low-price market.

Initially, as the small box, low-price companies entered the market, one could clearly see a differentiating factor — less amenities, and a “why pay for what you don’t use” mentality. The bigger clubs could easily show a greater self worth, and even strategize sales around the differentiating factors.

However, over the past four to five years, we’ve seen quite a change in the low-price, small box model. In fact, many of the amenities that were absent in a small box model, available only in big box clubs, have started to cross over.

At first, small box facilities would have never used Group X, personal training or small group training. But, as more and more people began searching for group exercise opportunities, clubs of all sizes began to implement classes and trainers.

When the initial cost of the gym membership is low, it allows for members to spend more on ancillary services, such as Group X, personal training and small group training. Which tends to drive the overall membership down through competition. Also, with the development of Group X technology in the form of Fitness on Demand and Fitness on Request, it has allowed small facilities to compete with bigger facilities on a certain level.

My argument would state that there will always be a difference between working out at an athletic center or big box facility, over that of a small box facility. However, I see the opportunities in both, and how if you are attempting to cut cost out of your budget, a small box, low-price option can be alluring.

Regardless, what do you believe will be the final judgment in compatibility? With more small box franchises opening in a multitude of areas, will big box facilities be able to compete, not only on price, but also on services? In the next 10 years, when a consumer compares the big box option to the small box option, will membership price be the only deciding factor?

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Whether there is room for both I believe is one of the most important questions the industry will need to answer over the next five years. For many years we saw the dominance of larger athletic facilities and big box fitness clubs. However, over the past 10 or more years, we’ve seen a slight newcomer in the small box, low-price market.

Initially, as the small box, low-price companies entered the market, one could clearly see a differentiating factor — less amenities, and a “why pay for what you don’t use” mentality. The bigger clubs could easily show a greater self worth, and even strategize sales around the differentiating factors.

However, over the past four to five years, we’ve seen quite a change in the low-price, small box model. In fact, many of the amenities that were absent in a small box model, available only in big box clubs, have started to cross over.

At first, small box facilities would have never used Group X, personal training or small group training. But, as more and more people began searching for group exercise opportunities, clubs of all sizes began to implement classes and trainers.

When the initial cost of the gym membership is low, it allows for members to spend more on ancillary services, such as Group X, personal training and small group training. Which tends to drive the overall membership down through competition. Also, with the development of Group X technology in the form of Fitness on Demand and Fitness on Request, it has allowed small facilities to compete with bigger facilities on a certain level.

My argument would state that there will always be a difference between working out at an athletic center or big box facility, over that of a small box facility. However, I see the opportunities in both, and how if you are attempting to cut cost out of your budget, a small box, low-price option can be alluring.

Regardless, what do you believe will be the final judgment in compatibility? With more small box franchises opening in a multitude of areas, will big box facilities be able to compete, not only on price, but also on services? In the next 10 years, when a consumer compares the big box option to the small box option, will membership price be the only deciding factor?