I ended up damaging my finger today so typing is bit of a struggle.
I came across this tweet by Moiz Ali, founder of Native. Moiz is known for building a $100M D2C brand that he sold to P&G under 3 years. His company only employed 7 people at the time of acquisition. On his twitter, he likes to give away ideas that he thinks can grow into multi million dollar businesses. Here’s one of his ideas using one of my favorite game-mechanics.
I don’t know much about gym economics, so I don’t know how well this could work. But I do know that gym memberships are sold way beyond the capacity because most members have a poor record of showing up.
If these economics don’t work, I’m sure that a different variant of this same model will definitely work e.g $45/month fee and $1/day waiver so the gym makes $15 even if a member shows up daily. The idea is in the offering and not the pricing.
You’re rewarding your members for showing up daily which encourages them to show up. The statement that you’re making is that your gym really cares about their health as you’re willing to charge less as long the customers are healthier. The attendance rate would still only slightly improve as most members will continue to have attendance rates as before.
In addition, you’re taking 1 year commitment so you’re still likely to make money of your most regular customers.
I think it’s a great idea. What do you guys think?