In my opinion, I think it has to do with getting new members and maintaining them. With so much competition out there, they need to keep coming up with new ideas and training programs that will make their members want to stay there. Also pricing has to be right. Their overhead costs and other expenses can be an issue as well, especially in today’s economy.
I do concur with all the answers so far. Another issue that I would like to add is dealing with competition. In a place like Vegas, where new commercial property is consistently being developed, brand new gyms pop up all over the place. Right now, my gym, being the oldest one on the block (only 4 years old), is now surrounded by 8 sparkling new gyms (this does not include PT studios, or any other specialty fitness studios) just within a 2 mile radius. It is just insane the amount of competition I have to compete with in a developing suburb of Las Vegas. I am sure there is still more to come as there is more commercial properties being developed near by.