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Price war wages in Cairns Fitness Clubs

Price war wages in Cairns Fitness Clubs
August 18, 2010

With new club openings set to see 20 fitness clubs operating in and around the city of Cairns, the fight for the fitness dollar has reached fever pitch with gyms offering a range of cut-price deals to attract members.

Reflecting a national trend to non-contract memberships, many Cairns clubs have also scrapped lock-in contracts have been scrapped at many gyms with fierce competition leading to some of the cheapest prices experienced.

Reporting in The Cairns Post, journalist Ben Blomfield found that "a snap comparison of Townsville fees showed savings of more than $3 a week in Cairns while Brisbane centres offered similar rates to the district despite their market being heavily regulated by population growth."

Blomfield also quoted Your Fitness Marketing Manager Michael Crawford as saying that undercutting was damaging the market, "comparing fees with other gyms around Australia, Cairns is definitely below the industry standard.

"I think it's not sustainable the amount of clubs trying to undercut each other."

Your Fitness, which opened in 2007, now has close to 1,400 members.

Cairns clubs, Sportsworld and Pro Balance each offer weekly rates starting at less than $13 with no lock-in contracts while PCYC offers a 12-month membership at a cost of $300.

Pro Balance owner Alissa O'Flaherty was quoted as saying "it's a funny industry in Cairns - everyoneâs ready to undercut and do whatever they can."

Sportsworld owner Gary Bradley believes Cairns' outdoor weather drives more people to the gym than other towns and cities, adding "we are an outdoor town and (people) donât wear many clothes and (their) physiques are on show."

Prue Kellahan of Genesis Health Club Cairns said the company did not enter the price war because it stripped clubs of revenue used to upgrade facilities.


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