In the past two years, not one, but two budget chain gyms have opened right on the doorstep of Redditch-based gym, The Fit Club. It would have been easy for them to panic, slash prices, or attempt to replicate the 24/7 model. But instead of battling their low-cost, high-volume approach head-on, The Fit Club took a smarter route—one that reinforced their brand, sharpened their focus, and ultimately boosted their profitability. Fit Club Director Toby sat down with us to share five steps that turned increased competition into the perfect opportunity for gym owners.
We Focused on What Makes Us Different
When budget gyms move in, the last thing you want is to be seen as a direct competitor. Instead, we doubled down on what set us apart. Our marketing became laser-focused on highlighting our unique features: our sauna facilities, specialist equipment, and most importantly, our incredible team of trainers.
Rather than trying to match their low prices, we built our brand identity around experience, community, and quality—things budget chains struggle to provide.
How to Stand Out in a Crowded Market
- Highlight Unique Features: Whether it’s boutique-style training, high-end equipment, or expert coaching, emphasise what members can’t get elsewhere.
- Leverage Social Proof: Showcase testimonials from members who love the premium experience.
- Tell Your Story: Budget gyms often feel corporate and impersonal—use your marketing to share the passion, personality, and people behind your business.
Quality wins over quantity…
One of our biggest selling points was our personal touch. While budget chains offer a low-cost, self-service model, we leaned into customer service, trainer-led sessions, and community-building events. We made it clear: if you want cheap, go to them. If you want quality, come to us.
We Put Our Prices Up
This might sound like the last thing you’d do in the face of budget competition, but here’s why it worked. We were never going to win a price war against multi-location operators with deep pockets and large networks. Instead, we did the opposite: we raised our prices to reinforce our position as a premium option.
By increasing our pricing, we made a clear distinction between our offering and that of budget chains. We wanted to attract members who valued quality, service, and experience—not just the cheapest membership available.
How to Price Yourself Confidently
- Don’t compete on price if you can’t win—instead, position yourself as the ‘better’ option, not the ‘cheaper’ one.
- Add value to justify higher pricing—exclusive classes, priority bookings, or even complimentary PT sessions for new sign-ups can help.
- Communicate the benefits—members should understand why your gym is worth the extra investment.
Higher price, higher perception…
When we raised prices, we noticed an interesting shift: members started viewing us as the “quality” option. Instead of being a slightly more expensive alternative to a budget gym, we became the premium choice in the area.
We Removed 24-Hour Access
With two 24-hour gyms in the area, we analysed our usage data through our Ashbourne CRM and saw that late-night and early-morning attendance was minimal. Keeping the gym open all night for a handful of users simply wasn’t justifiable.
By removing 24-hour access, we saved on operational costs and eliminated many of the headaches associated with running a round-the-clock facility, such as increased maintenance, staffing, and security concerns.
Why You Might Consider Removing 24/7 Access
- Assess member usage patterns—if late-night attendance is low, it may not be worth the cost.
- Reduce operational expenses—cut down on staffing, utilities, and maintenance costs.
- Enhance security and member experience—you will have better control over who is using the gym and when.
Sometimes, less is more…
Surprisingly, we didn’t lose many members at all. The small number of night-time users had plenty of alternatives to switch to the budget gyms, and we were able to reinvest the savings into daytime services that benefited the majority of our members.
We Got Organised
It’s easy to get complacent when things are going well. Before the budget gyms arrived, we weren’t as structured as we should have been. We had no clear idea where members were coming from, which sales tactics worked best, or how to track retention effectively.
With competition heating up, we took the time to streamline our operations, implement better outreach strategies, and personalise our member experience.
How to Strengthen Your Business Operations
- Track where your members come from—double down on effective marketing channels.
- Train staff to communicate value—every conversation is an opportunity to showcase your gym’s benefits.
- Focus on retention—identify disengaged members early and re-engage them before they consider leaving.
Organisation breeds opportunity…
Once we had better systems in place, our business ran more smoothly. We weren’t just reacting to competition—we were proactively growing our member base in a structured way.
We Kept Doing What We Do Best
There’s no denying that the two budget gyms impacted our business. But they didn’t destroy it.
At the end of the day, our gym offers something different. We have a strong community, expert coaching, and a level of service that budget chains can’t match. While they rely on low-cost, high-volume memberships, we prioritise quality, experience, and long-term member relationships.
How to Stay Confident Against Budget Competition
- Lean into what makes you special—whether it’s coaching, community, or premium facilities.
- Communicate your value—help potential members understand why your gym is worth the investment.
- Trust your model—don’t dilute your brand trying to compete on price.
The big lesson? Don’t act like a Budget Gym if you are not one.
When budget chains move in, it’s easy to feel threatened. But instead of trying to compete on their terms, focus on what makes your gym unique. Price yourself confidently, streamline your business operations, and lean into the quality and experience that budget gyms simply can’t offer.
The Fit Club didn’t just survive the arrival of two budget gyms—they used it as an opportunity to grow stronger, smarter, and more successful.
And you can too.
