WASHINGTON — Planet Fitness is raising the cost of its basic membership plan for the first time in 26 years.
The national gym chain has long touted its $10 membership plan for more than two decades, but is now increasing that price to $15 a month for new members. The price hike is slated to take effect this summer.
Current members who signed up for the $10 plan will still have that rate locked in until their membership expires, according to a first-quarter earnings call on Thursday.
"It will take some time for the benefit of the price change to expand our store level margins as the price increase will only be on new classic card memberships," Planet Fitness CFO Tom Fitzgerald said in the earnings call.
Planet Fitness' "classic card," the gym chain's lowest plan, only allows members to use a single gym location. The "Black Club" membership, which allows for multiple gym locations, will remain unchanged at $25 a month.
According to Fitzgerald, more than 60% of Planet Fitness members select the "Black Club" membership plan when signing up.
The decision to raise the basic plan to $15 is a result of "several headwinds" impacting the company's earnings results. The new price was chosen after a series of price-tests in different markets, according to the company.
Executives tested a $12.99, $14.99 and $15 price point starting last fall but ultimately chose the 50% price hike as it " drove the most significant increase to average unit volumes with the least impact to the rate of joins."
Despite no immediate change to the $25 plan, the company noted it would explore price tests for the "Black Card" membership plan.