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Actually, they may not be making ANY money off of his friend. Most 'charter' deals and seasonal specials are loss-leaders for gyms. The former, as part of the initially pre-financed membership drive and the latter when they're already below break-even capacity on a per-membership basis.

Keep in mind he's asking for more than a 8.5% discount on the stated price even before excluding the bogus initiation fee.

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Dan was not a charter member. But I think you're right about "lull period." Yes I understand the whole 80/20 usage scenario.

My point is just that it's price discrimination that doesn't work. Soda at a supermarket vs. restaurant works because of location. This is just a bluff on the gym's part.

I was actually a charter member at the Union Square Crunch gym (the one on 3rd anyhow). Quitting was easy though, they only asked why (because I hadn't been going) and that was that.

Yes but the vast bulk of costs for a gym are fixed costs. You've got large fixed costs in the form of rent, machines and staff just to have the doors open.

Sure there's the idea that he'll be taking up space in the gym, but, statistically speaking, that's unlikely after the first couple of weeks.

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