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They Have 10,000 Members On Average?

Name: They Have 10,000 Members On Average?
Uploaded: 2025-06-11T03:00:32+00:00
Duration: 41 s
Channel: Shanli Liu, CPA, CTP
Description: In this commentary, the speaker explains how Planet Fitness built a highly profitable business model by deliberately attracting members who rarely use…

11 Jun 2025 · 1 min

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In this commentary, the speaker explains how Planet Fitness built a highly profitable business model by deliberately attracting members who rarely use the gym. He notes that about 92% of its members never go, and the chain identified the small segment of hardcore gym‑goers who use heavy equipment. By removing barbells and other heavy‑weight gear and focusing on easy‑use machines and amenities like pizza, Planet Fitness makes the facility unattractive to serious lifters while appealing to casual users. This strategy allows each location to maintain an average of 10,000 members, generating revenue from membership fees despite minimal actual usage, illustrating a clever customer‑selection and product‑design approach.

Chapters

92% of members at Planet Fitness never go to the gym. And so one of the brilliant parts of their business model was finding out who is least likely to use the gym and who's most likely to use the gym. And then what they did is they figured, oh, all these people who come to the gym all the time, they use heavy weights, they use barbells. Those are the hardcore gym goers. What if we remove all the things that those people use and then we can get way more people who never use the facility at all? And then what do all these people want? They want pizza. They only want the easy equipment. And so they catered something for everybody else and everybody else doesn't use the gym. And so they made an unbelievably profitable model where The average Planet Fitness has 10,000 members. And if people actually use the gym, they wouldn't be able to do it. And it only works because no one uses it because of how smart they were about how they pick their customers.