What benefits do customers receive in return for the sacrifice they make

when buying a membership at Planet Fitness?

Reasonable membership fees start at $10 per month.

Hygiene and friendly environment specifically for new and non-heavy users

Access to Brand-name cardiovascular and strength equipment

Unlimited fitness training and access to flat-screen televisions.

Large locker rooms for convenience.

Option to upgrade and access additional privileges through PF Black card membership

Receive Pizza and bagels on the First Monday and Tuesday of the month respectively and Tootsie Rolls on
a regular basis.

How does this benefit-sacrifice ratio give Planet Fitness a competitive

advantage in its industry?
Planet Fitness attracts a broader market segment by offering affordable membership starting at $10 and
providing essential but brand-name equipments.

The benefits customers receive outweigh the sacrifices made by customers which leads to higher
customer satisfaction and positive brand perception.

The strategy followed by Planet Fitness positions itself among customers as a no-frill preferred choice.

Given its price strategy, why is it essential for Planet Fitness to

continually attract new members? Do its high-end pricing competitors
face the same need? Why or why not?
Since Planet Fitness follows a low-price, higher-turnover model it is crucial to attract new customers
continuously and retain existing customers to achieve growth and profitability.

It's effective location strategy and marketing efforts that focus on attracting new customers.

Conversely, high-end pricing competitors may not face the same need to attract new members due to
their higher revenue per member from existing customers. However, they might feel the pressure to
maintain customer satisfaction and retain existing customers.