Advertisement - Click to support our sponsors.
Editor's note: Star-Bulletin reporter Rob Perez, wanting to join a health club in or near downtown, recently visited six to compare their membership programs. He joined Clark Hatch Fitness Center. None of the clubs knew he was doing a story until after he evaluated them. Here are some of his observations.
Survival WHEN the double whammy of an economic slowdown and increased competition hit Oahu's health club industry in the 1990s, it was like a stiff punch to the gut -- except the pain lasted well beyond the initial blow.
of the Fittest
Oahu's health clubs lower
their fees and offer more amenities
in a feverish fight for customersThe hunt: Reporter Rob Perez shops around
By Rob Perez
Star-BulletinClub profits fell, in some cases dramatically. Owners were fortunate if they didn't have to eliminate or lower some fees. Attracting and keeping members was a constant battle.
Today, while the clubs still are feeling the economic pinch, Oahu consumers never have had it better.
They have more choices than ever before, and many clubs are pushing promotion after promotion to attract new members.
"From the consumer's perspective, it's the best time," said Bill Monsen, president of Clark Hatch Fitness Center, which two years ago dropped its $150 initiation fee to remain competitive. The downtown club also has kept its monthly dues at $58 for the past three years.
Even the upscale Honolulu Club, which in the 1980s had an enrollment fee as high as $1,500, has gotten into the act. As part of an anniversary special, new members can join until year's end for as little as $250, half the regular enrollment fee of $500 --and a far cry from the $1,000-plus days of the 1980s. Monthly dues are $111."We're affected by the economy like everyone else," said David Shell, general manager of the Honolulu Club, which has seen its overall membership, including social and out-of-state clients, remain relatively flat in recent years.
If the economy wasn't challenging enough, a new entrant in the Honolulu market in 1996 raised the competitive stakes even more.
In the midst of the economic slowdown, 24 Hour Fitness Inc., now the world's largest fitness chain in terms of number of clubs, acquired Gym Masters Inc., operator of three Gold's Gym outlets on Oahu. Pleasanton, Calif.-based 24 Hour Fitness, known for its aggressive marketing practices, has since expanded to seven Oahu sites and one Maui outlet and plans to open additional clubs during the next two years.
Rival businesses have taken notice.
"It's unbelievably more competitive now," said Bryan Martines, manager for The Gym in Kakaako. "When someone walks out my door (without signing up), you bet I'm worried because I know 24 Hour Fitness is just licking its chops to get at that person."
Crowded market
The beefed-up competition has meant a rise in advertising as clubs try to woo what industry executives believe is a growing number of isle residents interested in pumping iron.Reliable membership statistics are hard to come by. The International Health, Racquet & Sportsclub Association, the trade group considered the best source for industry data, only tallies the number of clubs in Hawaii. As of July, the state had 73 clubs, up 40 percent since 1990, according to IHRSA.
The growing number means owners have a tougher time spreading the word about their clubs in an increasingly crowded market. One way to do that: more marketing.
Martines said The Gym has tripled its frequency of advertising compared with three years ago.Even the YMCA of Honolulu, a nonprofit organization with four fitness centers on Oahu, took the unusual step earlier this year of running print ads and mailing thousands of fliers to homes to attract new members.
It previously ran campaigns focused on the YMCA's overall image or child-care services, but highlighting the fitness programs illustrates how competitive the marketplace has become, said Roz Hamby, executive director of the organization's Nuuanu branch.
For many clubs, the ads typically publicize discount specials that seem to be offered all the time.
The Gym for weeks has been marketing a $19-a-month program. Throughout August, 24 Hour publicized its offer to waive enrollment fees for anyone who joined during the month. Likewise, Spa Fitness Centers advertised an August enrollment deal of only $1.
High-pressure sales pitches
The stiff competition for new members has given rise to concerns about high-pressure sales tactics. Some clubs won't give fee information over the phone and insist that prospective members meet with a sales associate -- who usually is paid partly on a commission basis -- to go over options and try out the facilities.The sales pitches can be "really highly charged emotionally, and that's something consumers have to factor in," said Anne Deschene, president of the Better Business Bureau of Hawaii, which takes complaints against health clubs.
She advises consumers not to make rash decisions and to fully understand a membership contract before signing.
Under Hawaii law, customers have five days to cancel such contracts should they change their minds.
Given the size of the industry locally and the rising interest in fitness programs, regulators say Hawaii clubs have generated surprisingly few complaints.The state Office of Consumer Protection, which investigates such complaints, has received two through July of this year. From 1996 through 1999, it averaged 10 a year.
"The fact that people aren't complaining is a good sign," said Steven Levins, acting director of the state office.
Still, Hawaii's industry doesn't fare nearly as well as the national average.
At the local Better Business Bureau, 16 complaints were registered last year -- an average of roughly one for every four clubs in Hawaii. The numbers can vary widely from year to year, Deschene said. In 1997, for instance, about 100 complaints were recorded -- or more than one per club, according to industry statistics.
By contrast, the national average in 1999 was one for every seven clubs, according to IHRSA and Better Business Bureau data.
Complaints and violations
The most common complaints locally involve credit or billing issues or alleged misrepresentations by club personnel.Among the more egregious ones filed with the state over the past several years involved a Hilo resident who joined a club that suddenly closed three weeks later -- with no advance notice. Customers of Leisure Time in Hilo were told in early 1996 that the exercise equipment had been moved to a shed next to the club operator's residence. They were permitted to work out at the shed, which was built without a permit and which did not have a bathroom or running water, according to state files. Eventually, the operator, Greg Payne, got out of the business.
The state accused Payne of numerous violations, but it didn't prosecute him because of a lack of resources, according to the case file. Payne couldn't be reached for comment.
Another complaint involving 24 Hour Fitness was filed last year by a woman who discovered that nearly $1,000 had been deducted from her bank account without authorization. The woman said she authorized her club to deduct only one payment, or $45. Yet 24 Hour was still collecting monthly dues almost two years after her membership expired in August 1997, according to the case file. She eventually received a $945 refund -- but only after complaining to several company employees and then filing the state complaint.
24 Hour Fitness blamed the problem on a processing error and apologized to the woman.
Regulators, consumer advocates and industry executives offer these tips before you join a health club: Before you join
From 1997 through July 2000, 24 Hour was named in 26 complaints filed with the state, the most of any company, according to a Star-Bulletin review of state data.
Given that 24 Hour deals with thousands of members in eight clubs, the most of any fitness company in the state, 26 complaints over a 3 year period is low and only amounts to about one complaint per club annually, said Andrew Dewey, district manager for 24 Hour Fitness in Hawaii.
"We would love to please all the people all the time," he said, but that isn't possible.
Dewey said the company tries to resolve all complaints to customers' satisfaction -- something supported by the case of local attorney Phil Nerney, who filed a complaint in April over inadequate hot-water facilities at the chain's downtown club. When he initially raised the issue with a company employee, he didn't get a satisfactory response.
"My issue was addressed once I spoke with the right person," Nerney said. "Unfortunately, I had to file a complaint to make that contact."
For his trouble, Nerney was given an upgraded membership.
Cleaning up the industry
Club executives and regulators say one factor that has helped prevent consumer problems is Hawaii's law dealing with club marketing practices. Among other things, the law prohibits selling of lifetime memberships, a practice that was common in the 1970s and early 80s.The law helped clean up an industry that had been hurt by a series of high-profile cases in which financially troubled clubs suddenly shut their doors. One of the more prominent cases occurred in 1989 when International Fitness Center closed its Kapiolani location without warning, angering several thousand members. Hundreds filed complaints with the state.
With such a checkered past largely behind it, the industry today is dealing with the challenges of a more competitive marketplace and the remnants of Hawaii's decade-long economic troubles.
That means having to closely watch expenses, right down to how long a bottle of liquid soap or a box of pens lasts, owners say.
"We run a very lean ship here, as most businesses have done in this economy," said Clark Hatch's Monsen. He said profit margins have fallen substantially -- a lament echoed by several other clubs.
At the same time, consumers have become more aware of their choices -- and more demanding, club executives say.
"We understand that if we don't give members what they want, they can take their business elsewhere," said 24 Hour's Dewey.
For 29-year-old Laura Gorka, a newcomer to weight training, the heightened competition has worked to her advantage. She ended up joining The Gym in April after comparing offerings at three different clubs.
The level of service -- a feature that clubs are paying special attention to in today's market -- is what sold her on The Gym.
"To me, cost wasn't an issue," Gorka said. "It was about being able to learn" in a comfortable environment with helpful trainers.
If you're thinking of joining a health club, brace yourself for some confusion. Persistence, patience key
to evaluating club optionsBy Rob Perez
Star-BulletinTrying to compare membership offerings from club to club can be an exercise in frustration -- especially if you start by gathering information over the phone.
Some clubs, such as 24 Hour Fitness, won't give prices over the phone. Some provide only vague quotes. Others, such as Clark Hatch Fitness Center and the Honolulu Club, will tell all.
One reason it can be difficult to get straight answers is because the price of a membership depends on many variables -- and they differ from club to club. What you're paying for (daily vs. three-day-a-week gym usage, for example), how you're paying for it (automatic payment vs. credit card), and whether you're paying in advance or committing to a specified period (one-year agreements lower the price) are among the factors that can affect the bottom line.
Some clubs will explain the variables over the phone. Others want you to meet personally with a salesperson, check out the facilities and, the club hopes, sign up that day.
24 Hour Fitness, which has eight clubs in Hawaii, more than any other company, falls into the latter category. Of the six clubs I visited (Clark Hatch, 24 Hour Fitness, The Gym, Honolulu Club, Spa Fitness Centers and Hawaii Athletic Club), 24 Hour was the most aggressive in trying to get me to sign up on the spot.
EVEN though I told the sales associate I wouldn't be making a decision that day, he asked several times whether I would join if he was able to get the cost lowered. He suggested, for instance, that his manager might waive a $99 enrollment fee if I signed up that day -- a tactic similar to what car salesmen use.
Andrew Dewey, district manager for 24 Hour Fitness in Hawaii, said his sales associates use "friendly persuasion" to try to get prospective customers to join during initial visits.
If people aren't persuaded to do something right away, they tend to procrastinate and might not even start an exercise program, Dewey said.
"Hopefully, it never comes across as high sales pressure," he said of the company's marketing practices.
When evaluating different clubs, make sure you compare like programs. Don't, for example, compare the price of a month-to-month program at one club with a one-year plan at another. It's not "apples to apples."
One-year agreements generally come with lower monthly dues, but if you cancel before the year is up, you likely will pay a cancellation fee of roughly $50 to $200. With the pay-as-you-go programs, you can stop anytime without penalty, as long as you give the required advance notice, usually no more than a month.
SOME of the clubs don't volunteer such information, so be sure to ask lots of questions.
Also, the enrollment or processing fees, if they aren't already discounted or waived, are the ones most likely to be negotiable. Monthly dues usually aren't.
When checking out the clubs, most will encourage you to spend time -- at no charge or obligation -- working out at their locations.
The idea is to determine whether you would be comfortable exercising at a particular facility.
Clubs tend to cater to different kinds of customers and have different "atmospheres." One location may have many intense bodybuilders, an environment that could intimidate novices, while another club might cater to more casual fitness buffs.
As you ponder your choices, there's one other thing to brace yourself for: a small dose of humiliation.
After a buffed-up trainer takes your measurements and completes your initial fitness evaluation, he or she likely will utter those three dreaded words:
"Excess body fat."
Eventually, your psyche will recover.
The cost of an individual membership -- based on a month-to-month, pay-as-you-go program -- can vary greatly at local health clubs. The monthly fee generally is lower if you sign up for a one-year contract or pay for a year's membership in advance. The rates below include any specials that were available as of the week of Aug. 21: Fitness fees and amenities
CLARK HATCH FITNESS CENTER
745 Fort St.Downtown
Monthly dues One-time fees* Hours Main amenities** Extras*** $58 None M-F: 6 a.m.-8 p.m.
Sat: 7:30 a.m.-5:30 p.m.
Sun: ClosedWeights, cardio machines, group classes, pool, whirlpool, sauna, steam room, racquetball, workout clothes, towels Personal training, massage
THE GYM
768 South St.
Monthly dues One-time fees* Hours Main amenities** Extras*** $35 $75 M-F: 5 a.m.-11 p.m.
Sat: 6 a.m.-9 p.m.
Sun: 7 a.m.-8 p.m.Weights, cardio machines, group classes Personal training
HAWAII ATHLETIC CLUB
432 Keawe St.
Monthly dues One-time fees* Hours Main amenities** Extras*** $80 None M-F: 24 hours
Sat: 12 a.m.-8 p.m.
Sun: 7 a.m.-6 p.m.Weights, cardio machines, group classes, sauna, basketball, towels Personal training, auto wash/detailing
HONOLULU CLUB
932 Ward Ave.
Monthly dues One-time fees* Hours Main amenities** Extras*** $111 $250 M-F: 4:30 a.m.-11:30 p.m.
Sat: 5 a.m.-11 p.m.
Sun: 5 a.m.-10 p.m.Weights, cardio machines, pool, group classes, racquetball, squash, whirlpool, sauna, cold plunge, steam room, basketball, tennis, towels Spa services, personal training, child care
SPA FITNESS CENTER
1212 Punahou Ave.
Monthly dues One-time fees* Hours Main amenities** Extras*** $30 None M-F: 6 a.m.-10 p.m.****
Sat: 6 a.m.-6 p.m.
Sun: ClosedWeights, cardio machines, group classes, pool, whirlpool, steam room, sauna, cold plunge Personal training
24 HOUR FITNESS
1000 Bishop St.
Monthly dues One-time fees* Hours Main amenities** Extras*** $43 $69 Open 24 hours Weights, cardio machines, group classes, sauna, steam room Personal training
YMCA
1441 Pali Hwy.
Monthly dues One-time fees* Hours Main amenities** Extras*** $39 $100 M-F: 5 a.m.-10 p.m.
Sat: 6 a.m.-7 p.m.
Sun: 10 a.m.-5 p.m.Weights, cardio machines, group classes, pool, whirlpool, sauna, racquetball, basketball Child care * Includes enrollment, processing and maintenance fees
** Amenities available at no extra charge
*** Services available for a fee
**** The club alternates the days in which it is open to men only and women only, other than some limited areas designated co-ed at certain times each day.