Friday, October 16, 2009

Staying Fit Can Be Stressful



Choose something consumers can relate to.
Warn consumers.
Protect consumers.
Inform consumers.

In my advertising class we were put into groups and asked to
choose a topic to further investigate sort of like a consumer
report.

Lindsey, Shelley, Nicole and I investigated the ins and outs
of local gym contracts/memberships.

Our goal was to make consumers more aware of how contracts work
and which local gyms are the best choice.
We chose this topic because we often hear people complain about
how hard it was to cancel their gym contracts. Plus, we thought
it would be interesting to compare gyms and see which ones can be deceitful.

First, we did a survey within Red River College on Princess Street.
The survey was non-gender specific and non-age specific.
We randomly surveyed 60 people. Twelve of those 60 said they have had
trouble exiting a gym contract at one point in their life.
Half of those 12 said their bad experience was at Shapes.

Survey Results
Mode average:7
Mean average:7
Median:7

Our next task was undercover field work.
Each of us chose a local gym to research.
The gyms we investigated were Shapes, Curves, Good Life Fitness, and the YMCA-YWCA.
Each group member assumed the role of a potential customer and
walked into their gym with the "intention" of purchasing a membership.

Here are some of our findings:

Curves

  • Is a womens circuit gym. You cannot work out on your own agenda.

  • $51.45 monthly ($617.40 annually)

  • $100 start-up fee

  • Duration of membership: one year

  • Cancellation of membership before the end of the year: $52.50

  • Friendly customer service

  • We were not able to get a copy of a contract




Good Life Fitness


  • Many programs offered with a membership

  • $19.00-$24.50 bi-weekly ($456-$588 annually)

  • No start up fee

  • Duration of membership : one year

  • Cancellation of memberhip before the end of the year: $99.00 with 30 days notice

  • After one year, cancelling is free

  • Very friendly customer service

  • We were not able to get a copy of a contract


Shapes


  • Many classes to join offered with membership

  • $22.84 bi-weekly ($548.16 annually if paid up front)

  • $50 start up fee, unless there is a promotion

  • Duration of membership: locked in for one year

  • Cancellation of membership before the year is over is not possible.

  • After the first year you must submit a written letter with 30 days notice

  • Unwelcoming service, deceitful and pushy.

  • Was not allowed to look at a contract, but managed to get one from someone who works there



YMCA-YWCA

  • Has a pool, waterslides, steam room and rock climbing.

  • Cheap babysitting rates

  • Charitable organization

  • $38 monthly ($456 annually)

  • Offers Membership Assistance program for those who can't afford the entire membership fee

  • $50 startup fee

  • Can cancel at any time with a written letter

  • Exceptional customer service

  • Was given a copy of a contract when asked

Interview With Former Shapes Employee

I stumbled across a 23-year-old woman who used to work at Shapes, and she agreed to do an anonymous interview about her horrible experience at Shapes two years ago.

She started working in front desk sales as a receptionist and then quickly ‘moved up the latter’ to work behind the scenes at the head office as an administrative assistant. She claims that during her employment with Shapes, she witnessed many tactics that Shapes employees used to deceive and manipulate customers, and potential customers.
“Shapes doesn't operate on customer satisfaction,” She says. “It's all about profit.”

She hated her job at Shapes, and said that she was happy when they laid her off. She informed me that every January employees would be let go for no apparent reason.


“It's a revolving door, the staff there is always changing.”

She believed it was so that the owners could hire inexperienced workers and not have to pay them as much. Also, she says the owners don't want their employees to learn too much about the corrupt system. The anonymous Shapes worker says the reason why people find it so difficult to get out of their contracts has a lot to do with the unorganized head office and sloppy communication problems. She explains that many letters don't even get read. The sales people at Shapes are told exactly how to sell memberships and are told to never use the word contract, and instead “use the word agreement, because people are scared of contracts.”

She goes on to say that sales people at Shapes are very pushy, and for a reason. She explains that when they start working they receive an hourly wage plus commission. Once they make “too much money” they get a very low salary instead of an hourly rate. And she says the salary is so low the sales people must try to sell as many memberships as possible so that they can make enough money on commission.

She says, “I don't agree with a lot of the things they do. They are very pushy.”



CONCLUSION:

We decided that based on our field work, surveys, research and an interview with a former employee, the Shapes Fitness Centre scored the lowest in terms of customer service and business antics, contract flexibility.



In terms of best facility, we all agreed that the Y was the most efficient in meeting their customer’s needs both financially and amenity-wise. As well, we also agreed that the Y scored highest on customer service, largely based on the fact that they were willing to let us have a copy of their contract.


But, remember each fitness facility offers different services that meet different people's needs.
Each gym has its pros and cons, but in terms of 'most bang for you buck' we believe the YMCA-YWCA is the best choice for someone in Winnipeg looking to join a gym.

We rated each gym out of five pairs of sweaty gym socks.

YMCA-YWCA: 5 pairs
Shapes: 1 pair
Good Life Fitness: 3 pairs
Curves: 2 pairs


When you consider joining a gym remember: it's important to do some background research before choosing which fitness centre you are BOUND TO FOR THE REST OF THE YEAR.

And remember: salespeople can be very deceiving. WATCH OUT!





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