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Jetts The Latest No Frills Health Club Chain from Australia
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(10/16/09) Following the airlines model, Planet Fitness blazed the way in the U.S. for no frills gyms, now it appears the concept is taking off in Australia with Jetts Gym. No saunas, no group classes, shower at home, but members like to keep the fees down.
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October 16, 2009 -- Back in February 2006, FitCommerce.com originally reported on the rise of Planet Fitness, the first no frills health club chain to hit the U.S. market, and it has taken off by storm. It now has 280 locations in 32 states.
It appears there is another franchise chain in Australia, Jetts Gym (www.jetts.com.au), that is replicating the no frills model and also replicating the success. Although they're just beginning, they now have 37 clubs across Australia and seem to be gaining momentum. |
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Positioning themselves as a no frills gym, Jetts is proud they don't offer amenities like pools.
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Jetts Gym offers cheaper memberships mostly by cutting costs and shirking little-used or unnecessary services such as steam rooms and group fitness classes. A monthly membership runs about $40 AUD per month. Members can use any of the gym facilities and there is no contract.
It's designed so that members can work out around busy schedules and night shifts, or can hit the gym when there won't be a crowd. By eliminating the fluffier gym facilities, Jetts is able to offer cheaper membership rates than most gyms.
By Jetts' accounting only 10% of health club members typically participate in the group classes, and the pool, sauna and fancy spa. By eliminating those amenities, they could offer a lower cost model. |
Jetts Gyms are located in residential areas, close to members' homes. Consequently, they encourage people to change and shower at home and thus take the pressure off limited facilities at the gym.
They're open 7 days a week and 24 hours a day with very limited staff. With advances in technology, personnel costs have been cut by using full-time remote surveillance technology, meaning staff is only needed on site for the 6 busiest hours of the day.
Planet Fitness Was the Originator in the U.S.
Planet Fitness, the leader of the U.S. no frills clubs, has made the Inc. 500 magazine's list of America's fastest-growing private companies. From 2005 to 2008, annual revenue jumped 551%, from $15.2 million to $99.4 million.
"It indicates we've truly developed a game-changing business model in the fitness industry," said Planet Fitness CEO Michael Grondahl. "We've had our naysayers, but we've arrived."
Planet Fitness had just 4 locations, all in New Hampshire, when it began franchising in 2003. It now has 280 locations in 32 states, including 11 in New Hampshire
Following in the footsteps of airlines and hotels, Jetts Gym and Planet Fitness appear to prove the concept that practically any service, even health clubs, can be distilled to its essential qualities and offered at a discounted rate.
More Like This…
Low Price No Frills Works for Airlines, Will it Work for Fitness Club Franchises?
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