The CEO of Planet Fitness has confirmed that the company will increase member prices.
It’s the first time the iconic gym chain has increased its workout costs in more than two decades.
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The last time Planet Fitness increased the Classic Card membership fee was before the turn of the century, in 1998, for USA today.
Classic Card members will see a five-dollar increase this summer – from $10 to $15 per month.
Those with the higher-tier Black Card at $24.99 per month may also see an increase as there will be “price tests” for it.
Classic Card members can only go to the location where they have a subscription and cannot bring a companion, while the Black Card allows them to bring a companion and have access to any Planet Fitness.
Planet Fitness CEO Craig Benson said the rising cost of Classic Card membership shouldn’t come as a big surprise to customers, given its constant price for decades.
“It’s not going to be a shock to anyone that we’re changing a price that’s been in place for a long, long time, 25 years,” Benson said on a quarterly conference call with investors.
“We think this is the right time to do this.”
Benson added that the Black Card increase was still tentative.
“We also think the time is right to look at different options on the Black Card, which may or may not change,” he said.
Supposedly, there will be “a few different iterations” of Black Card membership that gym-goers will be able to see soon.
Thomas Fitzgerald, Planet Fitness’ chief financial officer, also emphasized that current Classic Card members would be eligible for the price change.
This means that members who currently pay $10 per month will only pay that amount.
New members will have to shell out the $15 fee increase.
Benson did not provide an exact date when the new prices will take effect at Planet Fitness.
WHY THE CHANGE?
With inflation still high and other considerations, Benson noted that it is starting to cost Planet Fitness more to provide its services to customers than before.
CPI and inflation explained
The Consumer Price Index is how the federal government measures inflation.
Every month, the Bureau of Labor Statistics shares its CPI numbers with breakdowns of which items have variable prices.
The CPI shows how much prices have risen or fallen over the previous 12 months.
The calculation process is complex, but it measures price changes for urban consumers, those who live or work in an American metropolitan area.
Although it does not cover everyone, it measures prices for around 90% of the population.
The increase to $15 is necessary, according to the CEO, who said on the earnings call that inflation would bring 1998’s $10 adhesion closer to today’s $20.
Additionally, the company had fewer new members around the New Year than expected, around 900,000.
Benson attributed the lack of new members to the higher number of infections and respiratory illnesses during the month of January.
For more related content, check out The US Sun’s coverage of the beloved fitness brand closing a store in a major American city.
US Sun also tells the story of the brand paying exes $1,000 to work out at different gyms.
This story originally appeared on The-sun.com read the full story
