Fitness studios increase the price of their annual subscriptions by up to 10 percent — the big rate equation

Discounts here, discounts there, discounts everywhere: “Normally, many fitness studios would now advertise special prices,” says Claude Ammann, president of the Swiss Fitness and Health Center Association (SFGV). This represents about 420 of a total of about 1100 providers in Germany, mostly independent individual companies. “But there is currently little evidence of the usual bargain craze.”

Ammann is not surprised by the lack of marketing campaigns. The Covid crisis still weighs heavily on the shoulders of the members of the association. Many are still paying off their corona loans, while sales are still below pre-pandemic levels. A poll by the association in November found that it had reached an average of just 90 percent of its 2019 sales level.

In fact, from the customer’s point of view, it’s not just a lack of promotions. Many existing subscriptions are even becoming more expensive. Industry pioneer Kieser, known for his strength training for the back, recently increased the price for a simple annual membership from 1,090 to 1,200 francs – a surcharge of 10 percent!

In the autumn, the SFGV had recommended to its members a tariff increase of at least 5 percent, partly because of the loss of turnover, but also because of the increased energy costs as a result of the war in Ukraine. “I assume that about 10 to 15 percent followed this recommendation,” says Ammann.

More than every tenth studio has probably raised its prices already. And that’s not all. “I understand from the conversations with our members that more will follow,” says Ammann. He himself plans to adjust the rates in his fitness center in Zuchwil SO by about 5 percent in the autumn.

Because like most of its competitors, the sales volume in the pre-corona comparison was only 80 to 90 percent. “We have to somehow make up for this loss to cover fixed costs.” According to Ammann, 12 percent of Swiss fitness companies that are considered SMEs have gone bankrupt since the outbreak of the corona pandemic.

Reto Conrad, chairman of the Swiss trade association Active, to which the major chains such as Kieser, Activ Fitness and Update Fitness belong, also confirms that some providers have increased their prices. You have no overview. But: “We are currently conducting a market study and will be able to present more precise figures in the summer.”

Unlike the SFGV, Swiss Active has not communicated price increase recommendations to its members, says Conrad. “Each provider must decide for itself based on its economic situation.” In general, however, he has a lot of confidence in the industry. «In recent months in particular, many of our members have been able to book new subscriptions, mainly thanks to younger customers. In that respect, I think that price increases will remain limited.”

In fact, the large well-known chains – with the exception of Kieser – are currently refraining from price increases, according to inquiries from Clever Fit, the Update Fitness chain of Coop and the Migros subsidiaries and Fitnesspark.

How does Kieser explain his extraordinary 10 percent surcharge for the entry-level subscription? After all, inflation in this country was only 2.9 percent. Company manager Michael Antonopolous recently argued in an interview with the “Handelzeitung” with higher wages, energy prices and other costs. And a spokeswoman adds that the prices for the most expensive subscriptions would remain practically the same.

Kieser currently operates 21 studios in Switzerland and 150 abroad. Prices have risen by 5 to 7 percent on average. In Germany and Austria, Kieser has advised its franchise partners to increase prices for the basic subscription by EUR 120 and EUR 60 respectively.

The company is not afraid that Kieser can deter some of the customers with its hefty price surcharge, also because the expensive range is limited to power machines and the basic subscription does not include cardio training or spa offers, a spokeswoman said when asked. However, this could change as existing customers were sometimes offered the 2023 subscription renewal at the old, lower price. So your price shock is yet to come – and should be more painful than the next muscle pain.