Not going to lie, I have little experience with such gyms so please correct me if I am wrong, but they are not too dissimilar from gift certificates. So it’s still a call option contract, just not on a monthly expiration but an annual basis. And the beauty of this is they can expect that there is a chance you will forget about a ticket or two or you just give up on going to the gym in general. Tickets are often used as a try before you buy method for a gym, but many traditional gyms offer a day free to convince people to get the membership. The idea is still that they are trying to attract subscribers, but not people who will overwhelm or wear out their gym.
I thought some more on this and I thought i could add a bit more in that many smaller gyms do seem like they really want their members to become fit, because gym rats don’t cancel memberships, usually. But those smaller gyms often charge more than large gyms because they have fewer non users subsidizing their gym rats. Essentially, this is a question of how tightly coupled the profit motive and the fit consumers variables are for a gym. Gyms are relatively tightly coupled on this, and the difference between these two competing optimizing goals only really shows up occasionally on larger gyms. Sorry if I rambled. Hope I made sense.
What about the gyms that offer a number of “tickets” usable for a year?
Where does the “ticket” model fit into your theory of gym pricing?
Not going to lie, I have little experience with such gyms so please correct me if I am wrong, but they are not too dissimilar from gift certificates. So it’s still a call option contract, just not on a monthly expiration but an annual basis. And the beauty of this is they can expect that there is a chance you will forget about a ticket or two or you just give up on going to the gym in general. Tickets are often used as a try before you buy method for a gym, but many traditional gyms offer a day free to convince people to get the membership. The idea is still that they are trying to attract subscribers, but not people who will overwhelm or wear out their gym.
I thought some more on this and I thought i could add a bit more in that many smaller gyms do seem like they really want their members to become fit, because gym rats don’t cancel memberships, usually. But those smaller gyms often charge more than large gyms because they have fewer non users subsidizing their gym rats. Essentially, this is a question of how tightly coupled the profit motive and the fit consumers variables are for a gym. Gyms are relatively tightly coupled on this, and the difference between these two competing optimizing goals only really shows up occasionally on larger gyms. Sorry if I rambled. Hope I made sense.