Paying Your Dues - Brief Article

Kiplinger's Personal Finance Magazine, Jan, 2001 by Angela Davids

WEEKEND ATHLETE | Negotiating a FITNESS MEMBERSHIP may be a workout, but you can save a ton.

IT TOOK WEEKS of contemplation and a rare burst of motivation, but finally you've walked through the healthclub door. "Yes!" you itch to scream, "I want to join the ranks of those taut, spandex-clad bodies." You are at your most vulnerable, and the sales representative knows it.

And it is now that you need to hear a secret Mr. Spandex hopes you don't already know: Most gym memberships are negotiable. "A good sales rep is going to go for the high point and work down from there," says Jerry Janda, editor in chief of Club Industry, a trade publication.

Occasionally, sales reps will work way down. After a 15-minute tour of a local health club, Marry Sorensen and her boyfriend were offered this deal: a $900 initiation fee for the two of them plus $50 a month each. Sorensen, 32, a freelance writer and editor from Costa Mesa, Cal., had comparison-shopped ahead of time and was prepared. "I laughed and told him I'd done my research and knew he could go a lot lower," she says. It took a half-hour of back and forth, but persistence paid off. The manager proposed a $189 sign-up fee plus $38 a month each for Sorensen and her boyfriend.

What's the plan? In addition to being steered toward an expensive plan, you may not be told about the various membership options--including perhaps cheaper plans that come with restrictions but may suit you fine. Only in Kentucky, Mississippi and Oregon must club employees present a list of all the choices before a Contract is signed, says Bill Howland, director of public relations and research for the International Health, Racquet and Sportsclub Association.

One plan that might not be mentioned is a trial membership, which could be the best bet for many people, who are notoriously fickle about exercise. "Annual health-club turnover rates hover around 30% to 40%," says Harvey Lauer, president of American Sports Data. So while a long-term plan may offer great savings over time, consider going with a trial membership first.

How much should you pay to dip your toe in the whirlpool? For a benchmark, consider the world's largest fitness chain, 24 Hour Fitness, which offers a "90 days for $90" membership over the Internet--and no sales pressure. The cost of the trial membership can be applied to the purchase of a long-term plan.

During those first few months, schmooze with other members. You'll find out not only when the fresh towels arrive, but also what others paid for their memberships and what is included in the plan they picked. You can use that information to help negotiate your own deal.

Another good deal can be a "day-specific" plan. With such plans you typically pick three or four days a week to go. A family plan may also save you money, as can joining with a friend. "It is not uncommon for clubs to have a buddy system," says Janda.

Sweat the small stuff. When comparing the numbers, remember that fees add up over time. To determine hidden costs, Janda recommends checking out the locker room: "Is there a rental fee to use a locker? Do you have to rent a towel? Do they offer soap, lotion or shaving cream? Do they have hair dryers?"

Health clubs may also charge you extra for their most popular classes, or for racquetball, tennis, nutritional counseling, personal training or babysitting. Ask about fees for those activities up front, and try to work a few perks into your sign-up package, such as a couple of free classes or sessions with a trainer.

And if you find out after you've signed on the dotted line that a much better deal was available, remember that the law says you have a three-day grace period to cancel your healthclub contract.

--Reporter: CHRISTINE PULFREY