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?
For the full article go to:
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,
I think it’s a great idea. There are so many people who join a gym and they just quit going after sometime, but their gym keep billing them anyway. I doubt anyone from the gym call them and follows up with them to see why their stopped coming because as long as they have their CC on their file they can keep charging them. This new idea is great because it holds the people accountable and gives them a reason not to quit.
I actually think that these guys have figure out a way to keep their members motivated and engaged into a healthy lifestyle. If you are going to join their gym, you better be sure that this is what you are looking to get out of that place. Money can be a great motivator for many people. And if you can pay less while you get all the benefits in a gym, then it’s a great deal. I personally don’t see any downfalls from this idea.
Thanks for posting this question.
please note that the link does not work.
I had heard of this concept a while back, and then never heard of it again. I am not sure how one can enforce payments of such a virtual contract.
I think that gyms can do better by creating incentives for members to attend classes or by rewarding gym attendance.