Fitness market 'past its saturation point'

Competition is heating up in Tauranga's gym market as two new 24-hour cut-price franchises come to the Bay.
Jetts opens in Tauranga on Saturday, while Snap Fitness will open in Papamoa in August.
Lisa Chan, owner of The Gym in Tauranga, said the gym industry was already "hugely" competitive in the city.
The number of gyms in the Western Bay was already past saturation point, Mrs Chan said, and it was unlikely the new gyms would spark a pricing war.
"The pricing is already really competitive.
"I think everyone will review their prices but because it's already such a saturated market we are doing that anyway.
"If you look at [Tauranga] prices compared to Auckland and costs compared to Auckland, our costs are not that different [but prices are much cheaper]."
But Mrs Chan said she was not concerned about the effect of increased competition by the presence of two new 24-hour gyms, because of their lack of service.
Both will not be staffed at night.
"I'm hoping that the clients will see that they need that human interaction to keep them coming to a gym, they need the knowledge and assistance with programmes and classes.
"I wouldn't go to the dentist and fix my own teeth."
Ian Stevenson, principal of Bodyzone, said Tauranga gyms were already affected by pricing at the council-owned gym at Baywave.
In 2009 Mr Stevenson told the council ClubFit's annual membership, which included free admittance to Baywave's pools, was unfairly undercutting professional rivals.
This week, Mr Stevenson told the Bay of Plenty Times Weekend that situation had not changed.
But when it comes to the new wave of 24/7 gyms, Mr Stevenson believes they will compete mainly with each other. "It's a niche market, [whereas] with Baywave we are dealing with a big beast. What they are adding on and offering, that is the really big threat."
While Mr Stevenson agreed the number of gyms in Tauranga was already at saturation point, he was not concerned about the impact of the new gyms.
"It's a self-service kind of thing they are aiming at. It appeals to some but not to all.
"We have not indulged in any [price war] anyway, we wouldn't want to.
"People will go and check them out and do what they want to do, that's business.'
Marc Patel, owner of Oceanblue in Papamoa, also described Tauranga's fitness industry as extremely competitive, with several well-established gyms.
And while he welcomed "healthy competition", standards of service could be lowered if existing gyms engaged in a price war with the newcomers, he said.
"In our industry far too much is compromised when the underlying business premise is based on reducing operating costs as opposed to enhancing facilities and services."
While the new 24/7 gyms were not staffed at night, Mr Patel said a recent incident in his gym highlighted why adequate staff was crucial.
When gym-goer Mark Walley collapsed during a workout last month, Oceanblue staff saved his life with an AED (automated external defibrillator).
"It's absolutely vital that a gym ensures the exercise environment is as safe and comfortable as possible, and it is impossible to do this without adequate staffing."
Daniel Flynn, manager of Jetts Tauranga, said he realised the Tauranga gym market was saturated but felt Jetts was different enough to do well here.
"It's just the fact we have no locked-in contracts, we are 24/7 with state of the art security systems."
The response so far had been positive - 250 members had joined two days before opening.
Claire Attard, director of Jetts Fitness New Zealand, said competition was an issue for any business.
"It's up to Jetts to ensure that we continually offer a high level of customer service, cleanliness and understanding of the needs and wants of members so that they can achieve their goals."
Prices start from $19.95 per fortnight or $368 for the year.
Korey Gibson, New Zealand franchisor for Snap Fitness, said the company had already attracted interest from the Papamoa area.
The gym tended to attract shift workers who enjoyed working out during the night.
Prices start from $12 a week.