Planet Fitness is cheap because it operates on a High-Volume, Low-Price (HVLP) business model that functions closer to an insurance policy than a traditional service. They sell thousands of memberships per location on the statistical certainty that the vast majority of members will rarely, if ever, show up.
While the average gym relies on active members who pay higher fees to cover wear and tear, Planet Fitness aggressively targets people who don’t like gyms, keeping operational costs low and member counts high.
The “Overselling” Strategy
The core of their profitability is selling 10–20 times more memberships than their facilities can actually handle.
- Member Count: An average Planet Fitness location has about 6,500 members.
- Facility Capacity: Most locations can only physically hold around 300 people at once.
- Usage Rate: Roughly 60% of members do not visit the gym at all in a typical 30-day period.
If even 10% of their members showed up simultaneously, the gym would be unusable. The business model essentially collapses if everyone works out.
Comparison: Planet Fitness vs. Traditional Gyms
The following table shows how their metrics differ from a standard fitness facility.
| Metric | Planet Fitness Model | Traditional Gym Model |
|---|---|---|
| Monthly Price | ~$15 USD (Classic)* | $40 – $70+ USD |
| Members per Location | ~6,500 | ~1,000 – 1,500 |
| Active Usage | ~20–25% active | ~40–50% active |
| Target Audience | Casual / First-timers | Fitness enthusiasts |
| Primary Equipment | Cardio & Machines | Free weights & Classes |
*Note: In mid-2024, Planet Fitness raised its classic membership price for new members to $15 USD, though the brand was built on the $10 price point.
How They Keep Costs Low
Planet Fitness reduces overhead in ways standard gyms cannot:
- Equipment Mix: They fill the floor with cardio machines and selectorized weight machines. These are cheaper to maintain and safer than heavy free weights (squat racks, Olympic platforms), which require more supervision and insurance.
- No “Lunks”: By banning “grunt-heavy” lifting and removing heavy dumbbells (often capped at 60-75 lbs), they discourage bodybuilders and powerlifters. These serious trainees wear out equipment faster and intimidate the “casual” target demographic.
- Minimal Amenities: The basic membership includes no pools, saunas, steam rooms, or towel service, which are the most expensive items to operate and clean.
While the base membership gets people in the door, Planet Fitness makes significant profit on the “Black Card” membership ($24.99/month). This tier includes access to tanning beds, massage chairs, and guest privileges. These perks are automated (requiring no extra staff) and encourage members to pay double the base rate for services that have high perceived value but low marginal cost.
