I have recently read an article about 2 Harvard grads starting a company called Gym-Pact. The concept is to charge motivational fees only. Thus, if you stick to your weekly workout schedule, you will not be charged. If you fail to or leave the “pact” / program for reasons other than injury or illness, then a larger fee will be assessed.
What do you think of this?
Would this be a good program/membership for gyms or personal trainers to promote at the beginning of the year?
What would be the downfalls?
Any suggested pricing?
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This is an excellent question and concept. Back to behavioral economics with Kahneman & Tversky’s Prospect theory. Although, this may makes sense initially, I doubt its long-term success. The reason being is this theory is based on the value of losses and gains relative to the individual. While certainly losing money may be a motivation to act – I believe implementing this plan would require a number of different prices to reflect each individuals value system. For example, losing 20 for missing a workout may inspire me to workout but the clients I deal with could care less. The value from exercise has to outweigh the loss of money. Everyone will ultimately have a price point but to find a universal price point that works for everyone would be impossible.
Excellent Question & Thanks for sharing.
Fuel the Movement,