The Health Club Dilemma…become boutique-y or become budget.

At DavidBartonGym, people who aren’t members of the gym pay $25 per CYC class, while members get a reduced rate of $20 per class. Stephen Nitkin, CYC’s CEO, says the studio is able to keep prices below the $30-40 price of most cycling classes in Manhattan because the location at DavidBartonGym costs CYC a third of what it would have cost to build and operate its own space.

And while the price of many fitness classes in Manhattan may seem outrageous, much like the cost of real estate in the city, many consumers seem willing to pay a premium for the cutting-edge workouts and the attention of instructors who have built up personal brands through widely-followed Instagram accounts and best-selling DVD sets.

In fact, on a national scale, boutique fitness facilities earned more than twice the amount commercial health clubs earned per customer in 2013, according to a report released this month by the International Health, Racquet and Sportsclub Association and ClubIntel, a health club consulting firm.

The report’s authors slice the industry as a whole into three segments. There is the commercial fitness-only facilities and nonprofit gyms like the YMCA which comprise 80% of facilities in the U.S. These two segments have “adopted a strategy that embraces a low price point,” the study found, with nearly 50% of members paying under $25 a month and less than 10% of members pay over $75 a month.

On the other other end of the spectrum, representing approximately 20% of the market, “are the boutique fitness facilities that are pursuing a high price value proposition,” with between 20% and 40% of customers paying over $100 a month.

“Members appear willing to pay more for the personal interaction and sense of community that comprises many of the studio models,” the study’s authors wrote. “Facilities that are all about the equipment and access, basically renting out space to work out appear to be doomed to compete on price, essentially on the lowest price possible.”

In other words, today’s commercial health clubs are seemingly faced with two paths forward: become boutique-y or become budget.