The Fitness Industry Landscape and How It Impacts Your Health and Body

Fitness trends are always fun to talk about…like is the bosu ball dead and is HIIT still hot? But, these are easy, high-level topics to explore. Today, I’d like to take you deeper. I’m using my inside knowledge of the industry to explain how the overall landscape impacts you, the fitness enthusiast. These are not trends, they are industry truths, and they have stronger implications for your health and body than the latest craze or funky piece of exercise equipment.

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Market Competition is High but Barrier to Entry is Low

Opening up a fitness business isn’t the most complicated thing in the world. Personal trainers and “fitpreneurs” open their own studios all the time. In urban hubs it may even feel like new gyms pop up every season…and just as quickly shut down. Startup costs for a gym or studio space don’t have to be astronomical, especially for exercise formats like yoga and dance which don’t require costly equipment. This makes it easy to enter the fitness industry market.

Although, just because it’s easy to play the game, doesn’t mean it’s easy to win it. Most studios and gyms have to make a solid return on investment within the first two to three years to stay fiscally fit. Marketing dollars must be spent wisely and word-of-mouth reputation counts a lot towards success in this industry. A lot of fitness professionals turned small-business owners lack marketing and IT support, and spread themselves too thin trying to learn new skills to grow their businesses. In short, if a gym isn’t growing, it’s probably going…down the drain, that is.

What does this mean to YOU, the consumer?

If you’re in love with a gym or studio, invite friends to work out with guest passes and/or invest in a special training promotion from time to time. Even the most impressive establishments can go belly-up in this competitive industry. Success almost entirely rides on how well an establishment is supported by the community it serves (and vice versa). Unfortunately, the less financial flexibility a gym has, the longer it will take to refurbish worn out equipment and the less likely it is to offer fun membership perks and add-ons which can enhance your experience and encourage you to attend more regularly. And regular attendance is key to your fitness goals’ success! 

Industry Concentration is Low

As much as the household names of Anytime Fitness, Gold’s Gym, Planet Fitness, Equinox and CrossFit are top-of-the-mind in the fitness community, these companies don’t entirely run the show. The top 50 fitness companies have less than 30% market share. This means that there are a LOT of individually operated businesses or “one-offs” and small chains. It’s hard to project what direction the industry is headed, but it’s interesting to know that right now even the top dogs are battling to get ahead.

What does this mean to YOU, the gym member? 

There are going to be more fitness establishments with less brand recognition than there are well-known chains to choose from. This means that you need to do your due diligence and research them wisely. Your fitness decisions should be made based on convenience, cost, time, enjoyment, motivation, efficiency, community and/or professionalism and knowledge of instructors/trainers. I know, that’s a LOT of information to process. 

Your body and health will benefit most when the majority of the aforementioned factors are satisfactory or excellent in your eyes. You won’t reach your goals very quickly if you hate the workout program you’ve committed to. You will quickly lose out on a fitness community if you invest in a gym outside of your budget and quit it within six months. You won’t be intrinsically motivated to participate in group classes if you lack respect for the instructors who are teaching them. You get the idea. Do your homework on both the well-known chains and lesser-known “mom and pop” studios so that you find one that will harmonize with all (or at least most) of your needs. That’s the first step to ensuring you stick to your fitness aspirations.

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Boutique Studios Rival Big-Box Gyms

Over the last five years, the fitness industry landscape has undergone a major overhaul. Big-box gyms with all-inclusive monthly memberships were rivaled for the first time by boutique fitness studios specializing in exercise-specific formats. Boutique studios opened doors for fitness fans eager to participate in everything from barre class to pole-dancing and Zumba to trampoline workouts! The studio offerings grew more diverse and expansive by the season (or so it seemed).

Studios offer fitness enthusiasts low-commitment participation. In other words, people can usually pay for a single class pass (instead of a monthly membership) or a discounted bundle of classes, without any other fees or obligations. This is highly desirable to the growing crop of millennials who seek diversity in their workout regimens. This trend has given rise to ClassPass and has forced big-box operators to carefully consider investments in technology and marketing campaigns to remain competitive. Small studios, with their lower overhead costs and pay-as-you-use plans, have certainly stirred the pot.

What does this mean to YOU, the exerciser?

For starters, you definitely have a LOT of options these days when it comes to fitness. No longer are you relegated to the treadmill. With so many choices, some individuals enter “decision paralysis.” They have a hard time deciding which environment and type of exercise is best for their fitness goals. While it’s definitely worth checking out a couple of studios and comparing pros/cons and overall costs to their big-box competitors, it’s also a good idea to make a firm commitment. Choose carefully and wisely, but at the end of the day, choose!!!

In order to see results from your sweat, you need to be in a consistent routine. Oftentimes, a consistent routine is best established when you have a “home base” or at least a written plan of how you will juggle time split between the private yoga studio down the block and the 24/7 all-access gym at your office. Don’t be dismayed by the options at your disposal – be empowered by them! Give any routine at least three months of solid effort to see if it works or if you need to scrap it and capitalize on some more free trials at other gyms (always fun).

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Loose Industry Regulations

Some industries are tightly regulated…the fitness industry is not one of them. While this affords professionals and businesses some degree of flexibility, it carries implications for quality assurances. For example, CrossFit, a gym with over 10,000 affiliates that boast unique high-intensity workouts, is a licensed operation, not a franchise. What this means is that at one location you may have outstanding fitness professionals who know how to design excellent exercise programs and who are capable of coaching proper form for Olympic lifts (frequently used by CrossFits) and at another location you may have inexperienced or underqualified professionals. There are many governing bodies, doctors and exercise physiologists who are concerned by these discrepancies in professionalism and, in Washington, DC, these concerns have spawned discussions to enact regulatory measures on fitness operations. But, it’s not just a “CrossFit problem,” it’s the whole industry…

A lot of boutique brands train their professionals in-house, harvesting new instructors from their most loyal members. By training and converting devoted members and exercise participants into the leaders of the workouts, the fitness businesses are keeping pace with one of the most challenging aspects of operations; staffing. Unfortunately, this means that the instructor coaching you through a superset may only have a month’s worth of training under his or her belt, and the level of sophistication of that training is questionable too. As a professional who has held eight different widely recognized certifications in the industry, I can tell you firsthand that it’s too easy to get certified….way too easy. I’m ashamed to say it, but it’s true.

What does this mean to you, the gym rat?

I’m not sure that widespread regulations are the perfect answer to tighten up who operates in the fitness industry. I believe there are a lot of professionals out there who share this sentiment too. So, in the near term, it’s likely going to be left up to individual business owners to properly vet and monitor their instructors and trainers. While some will do a good job of this, others won’t. This puts the responsibility on you.

Gym rats and group exercise participants have every right to demand excellent instruction. If you don’t feel like you’re getting a safe and high-quality experience in your exercise setting, let a manager hear your complaint or concern. Don’t be afraid to speak to the instructor about their choices during or after class too. They will probably be happy to explain things and educate you! If they flounder in the face of a tough question, they probably aren’t very experienced or qualified and it becomes your responsibility to decide whether or not you can live with that. Personally, the second that I can tell an instructor is underqualified, I’m out the door. My hard-earned cash can go into someone else’s hands!

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Personal Trainers Lack Stability 

Personal trainers are rarely salaried employees. The vast majority of these professionals are compensated by the hour, based on commission. While some experienced professionals can pull six-figures in less than 30 hours of work a week, most professionals have challenges keeping a steady income. For example, a trainer can project that he is going to train 25 hours one week. Let’s say he only has a couple of years’ experience and is compensated $30/hour for his clients (his gym is skimming a lot more off the top from what the client pays). Based on these figures, he seeks to earn $750 for the week. This equates to a salary of $39,000 for the year, not including bonuses or performance incentives. Let’s pretend that he puts in a full 40-hour work week (not very commonplace in the industry). At full-time, he seeks to earn $1,200/week or $62,400.

To put it simply, the vast majority of trainers struggle to maintain schedules of 20+ hours of clients a week…and what happens when two or three clients who train twice a week each go on vacation? What about the fact that training under 30 hours a week leaves these professionals without time-off and health benefits? As you can see, while trainers are often envied for their “cool” jobs, they lack a lot of stability. For this reason, the turnover of professionals at any given establishment is pretty darn high.

What does this mean to YOU, the client?

To be honest, there isn’t a whole lot you can do except express a little bit on empathy and understanding. If you’re a paying client, try to show respect for your trainer’s time just as they show respect for yours. If you’re leaving town for a few weeks, give them as much advance notice as possible so that they can try to fill your training time slot with another person.

Moreover, as someone who pays for personal training, you have to decide whether or not you’re comfortable placing your investment into the hands of a newbie. As mentioned, the turnover of trainers is outstanding (in a crazy, not-so-wonderful way). Ask yourself if you want to give a worthy, aspiring professional a leg up or if you feel more comfortable with a professional who has been working in the industry for at least a few years. The choice is yours. Ultimately, if you find someone you jive with and respect, the decision should be seamless, in spite of how long they’ve been a fitness pro. For the record, I will always appreciate the people who were willing to take a chance on me when I entered the industry. 

Yours in health and wellness,

Maggie

wellnesswinz blue sea

 

2 thoughts on “The Fitness Industry Landscape and How It Impacts Your Health and Body

  1. Karen Irish

    Excellent and thought-provoking, as usual, Maggie! Happiest New Year wishes to you – hope this finds you well, happy, healthy (of course…), and engaged in all sorts of interesting projects and plans for 2016!

    Reply

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