The fitness sector, both locally and globally, presents endless opportunities. Proof of them is a large number of value propositions that are emerging in the sector. First came the low-cost gyms, which have been gradually consolidating, and now the boutique gyms, which are aimed at a more exclusive audience, with a higher purchasing power and who do not mind paying more to enjoy more workouts customized and in small groups.
But, although they are opposite models, the low-cost gym and the boutique gym have points in common: they focus on customer service and the use of technology such as gym management software and website. The point is that boutique centers are entering a market where low cost has taken a strong position in recent years.
The point is that, in this context, where competition is so high and where low-cost gyms enjoy a very strengthened position, boutique gyms have appeared, as a way of differentiation to attract new customers and gain an advantage. Offering new disciplines that adapt to the needs of consumers such as music flow yoga or crosspilates, a new concept aimed at true sports enthusiasts who do not go to the gym just to train, but to relax and release tension, and of course, they are not willing to wait to use the machines. It first emerged in New York and that in a short time has spread throughout the world.
What is a low-cost gym?
The low-cost gym appeared in response to the crisis, between 2008 and 2009. In fact, without the economic crisis, things like Dream fit would not exist. And, although they lived their golden moment in 2015, they are still experiencing significant growth of around 17.5% per year. And it is that this type of centers have managed to attract a large population that was previously passive, managing to open a wide range of possibilities so that anyone can exercise without paying a high cost for it. They offer excellent value for money that helps increase customer loyalty.
Low-cost centers are usually located in places with easy access, with a large influx of people, close to large towns and well connected by road or public transport. In addition, in the area, there are usually nearby car parks or even private parking within the facilities themselves.
The low-cost gyms offer a training service for a very economical price, available to any pocket since their rates are usually on average about 22 euros. Its management model is based on obtaining a cost leadership strategy that is, achieving the highest possible profitability by creating a large volume of customers.
However, in recent times, to adapt to the reality of the market so as not to compromise their profitability, they are going from 20 euros on average to about 25 or 30 euros per month. Despite this, they remain a very economical option.
But this price increase has also translated into an improvement in the quality of services and classes offered. In addition, many of them have ended up opting for the rate without the permanence and without enrollment to attract new subscribers, which does not necessarily imply customer infidelity. The key is to provide an added bonus to the customer through the generation of new experiences and technology.
Their policy is to minimize costs to offer its customers a price below what their competitors usually offer but provide, at the same time, a good service. For which, the client pays a very low rate, but if he wants to enjoy other services or classes, they must be paid separately.
The work teams and machinery they own are of the latest generation and most of them offer very innovative training experiences. In addition, many of them are connected to a mobile application, so together they allow you to enjoy a healthier lifestyle.
Low-cost gyms need to have a large volume of customers to be profitable and offer a wide variety of machines and collective activities to be attractive. Therefore, they usually have large facilities with many square meters and very well equipped.
Wide variety of collective classes
As a general rule, sports centers have a wide variety of group activities, which helps to influence their customers’ perception and build loyalty. Each member can choose the activity or activities they prefer based on their interests, their objectives, and their physical form, and go to them when it comes best. And if you get bored, you know you can change at any time.
In general, low-cost gyms open their facilities every day and have very flexible schedules. They open from very early in the morning until late at night. Some of them even remain open 24 hours a day. This allows those people who have a very complicated schedule for work or personal reasons, can go to exercise.
What is a boutique gym?
The boutique gyms first emerged in the United States, where they have experienced incredible growth in recent years. Today, there are already chains that have hundreds of stores throughout the country.
Boutique gyms are centers of a few square meters that offer collective classes in small groups of generally less than 12 people. They transmit that halo of exclusivity of small groups that make them an object of desire.
In addition, they stand out for their high level of specialization, since their sessions are based on one or two types of very specific training. Always taught by instructors with a very high qualification whose main objective is to offer a memorable experience and a personalized service to their students.
A new trend that is based on the combination of different disciplines with personal training in small groups, but also includes other services related to nutrition, beauty treatments or physiotherapy. It makes them a place that offers to transform both the body and the mind.
Most boutique gyms have higher prices than conventional gyms since their target audience is willing to pay more to enjoy more personalized workouts, with instructors who are attentive to their movements and who take care that they reach their objectives.
Unlike conventional gyms, in the boutique gym, a closed rate is not usually paid every month, but customers pay only for the services they use or for the number of sessions they will train. The members of this type of center prefer to pay a little more in proportion for each class or for using the machines in exchange for being able to choose with total freedom what they want at each moment and receive a better service.
Technology is a key element in the gym boutique. Customers can book their classes or a specific machine such as a treadmill or a bicycle from their gym management software online. In this way, they ensure that they will have a place and that they will not have to wait. But in addition, classes are usually enlivened by music, light games, and sound effects to create unique experiences.
High level of specialization
Unlike low-cost gyms, where dozens of activities and training programs are offered, boutique centers specialize only in one or two activities. Thus, we can find gyms that focus solely on cardiovascular training sessions, on Pilates, yoga, boxing, indoor cycling or dancing. It is precisely this high degree of specialization that makes trainers complete experts in the classes they teach.
Boutique gyms have smaller facilities than low-cost centers because they don’t need so many customers to be profitable. This avoids overcrowding and allows the possibility of training classes in small groups, offering members a more individualized treatment.
Each trainer explains in detail how the equipment should be used and how to do each exercise correctly, minimizing the risk of injury. In addition, the sessions are very intensive so that customers can improve and achieve their goals in a faster and easier way. In this way, it is much easier to maintain motivation and reduce the dropout rate. In addition, users motivate each other and feel they are part of a community with similar interests, which reinforces their commitment to the center.
Gym boutique facilities are designed entirely for the class or sessions that will be held in them. They are very well set and in some cases with certain privileges that other gyms do not offer such as a bath kit, avant-garde equipment or complimentary drinks.