Tuesday, August 17, 2010

Goldman's Tiered Gym Pricing Raises Eyebrows on Wall Street

“Here is the latest in creative financing from Goldman Sachs: the prices it charges its own employees to use the gym at its West Street headquarters. It's asking its highest-ranking employees to pay $81 more a month than its lowest-ranking staff, Reuters' Felix Salmon reports. While the bank can argue that it is just charging based on what the market will bear, others are already launching conspiracies. ‘Is it a Pigovian tax aimed at minimizing the number of healthy employees?" Salmon asks. "Is it an attempt to stop the unfit from complaining about having to cross-subsidize those who work out?’ Planet Money l...

http://www.npr.org/blogs/money/2010/08/16/129234269/goldman-s-tiered-gym-pricing-raises-eyebrows-on-wall-street

1 comment:

Hossein Noshirvani said...

I recently wrote a blog about pricing and various strategies that gym owners can use to set pricing.

http://www.motionsoft.net/blog/2010/07/the-price-is-right

Corporate wellness is still in its infancy and the fact that Goldman is offering to this service to its employees is great. I think only time will tell if this pricing strategy will work or not, in the meantime more corporations should take a cue from GS and all companies that implement corporate wellness - healthy employees lead to a healthier business!

Hossein Noshirvani
Motionsoft