The fitness industry has grown at an average annual rate of 13% over the past five years with an estimated 1.8 million Australians now members of gyms and health clubs. This aggressive growth saw an emergence of a new business model which has been challenging the industry norms.
The 24/7 gym model, also known as “express fitness”, is built on easy access for members, limited equipment and sophisticated security and surveillance systems to enable gyms to operate always, with a skeleton staff. Most of the 24/7 gyms offer month-to-month memberships rather than the 12-month contracts as offered by traditional full-service gyms.
These gyms target the time-poor, cost conscious people by providing access to the club 24/7 and people who do not find time to use all the facilities provided by the full-service gyms.
The introduction to the market of low-cost, small box, 24-hour offerings such as this opportunity which offers limited services is now becoming increasingly popular.
The Gyms attract a significant number of members away from the traditional gyms mainly due to lower costs, no frills, greater membership flexibility and 24/7 availability. By cutting out the many services that traditional full-service gyms provide, overheads are kept low and this in turn is reflected in lower membership price points being passed on to the consumer.
This should be an immediate call to action for any astute investor.
Sub heading here[FORM_HERE]