Thursday, January 8, 2009

Health Clubs Take On Flabby Economy

“With a slumping economy and rising unemployment, the region's gymgoers (and aspiring gymgoers) will face an added challenge this year - actually affording their memberships. And club owners are concerned. ‘People have money. It's just that they are more cautious now with their money,’ said Laury Hammel, co-owner and founder of the Longfellow Clubs, a chain of tennis and fitness facilities with locations in Franklin, Natick and Wayland. ‘So we have to show that this has a good value and will add benefit to their lives.’ This month, Hammel is offering a new special to prospective members - a free two-week membership, with a hitch. Customers must attend six supervised classes during the two weeks. They pay $25 upfront, and upon completion of the six sessions, which can range from personal training to Zumba, they get the money back. The hope, said Hammel, is that customers will see the benefits of the club and decide to sign up for a year, with dues ranging from $450 for an individual to $2,350 for a family. Across the region, gym owners are coming up with similar deals. ‘Honestly, I believe that if people started losing their jobs, they would stop coming in to our gyms and studios,’ said Rob Shapiro, who founded BodyScapes, a small gym with outposts in Southborough and Brookline. ‘I'd think about it if I lost my job.’ Like Hammel, Shapiro recently rolled out a plan to get new members into his clubs. In November, Shapiro began offering a discount - no initiation fee, $10 monthly charge - for existing or new clients who recently lost their jobs. Monthly rates in Brookline are normally $89 and are $65 in Southborough, he said, while initiation fees range from $99 to $199, depending on the plan. ‘It shows our clients we understand the recession is here and it's going to stay for a while,’ Shapiro said. ‘Look, I'd rather have a member who's paying $10 a month that will continue to come to the club. In six months, maybe they'll have a job and will resume their membership. Or maybe they'll decide they don't want to participate. Either way, we've kept that client for six more months. To me, it's almost like a no-brainer.’ Gyms and health clubs tend to fare well during recessions, said officials at the Boston-based International Health, Racquet and Sportsclub Association. ‘Some of the things we've been hearing from clubs is that things are advantageous in these down times,’ said Rosemary Lavery, a spokeswoman for the industry organization. While the official numbers for recent months aren't available yet, she said, in the past, the fitness industry has stayed healthy even during an ailing economy.”

http://www.boston.com/business/articles/2009/01/08/health_clubs_take_on_flabby_economy/?page=2

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