HEALTH CLUB PROMOTIONS

An unexpected guest is coming to the NBA playoffs this weekend — Weight Watchers. Yes, squeezed between ads urging men to drink this beer, buy that car and bank here will be one that tells them how to lose weight.
Advertising Age Embedded Player
Watch a spot from the new Weight Watchers campaign
Buzzkill? The folks at Weight Watchers don’t think so, which is why they are putting some $10 million behind their first ad campaign targeted specifically at men. “Although we are predominantly female, we do have a decent percentage of men following the program,” said Chief Marketing Officer Cheryl Callan. Since launching a men-only website in 2007, “we’ve seen a lot more male success stories come though,” she added. “And that inspired us to think we have an opportunity here.”

Weight Watchers, the biggest player in the $3.3 billion commercial-weight-loss category, is following the lead of its smaller competitors, which have been after men for a while. Nutrisystem has for years relied on celebrity spokesmen, such as former NFL greats Dan Marino and Don Shula. And Jenny Craig last year added actor Jason Alexander to its stable of star endorsers, joining Valerie Bertinelli, Sara Rue, Carrie Fisher and others.

The companies are all trying to move the needle in a category that has leaned heavily on women. Roughly 90% of clients are female, according to Marketdata Enterprises, which tracks the category. “It’s been like that because men tend to want to lose weight on their own by working out in a health club or designing their own exercise program, and they are less likely to join groups or seek counseling,” said John LaRosa, president of the Florida-based market researcher.

But Weight Watchers — whose customer base is 90% female — says it has noticed an uptick in male interest. For instance, Ms. Callan said the marketer got encouraging feedback when a man made a cameo in an ad geared at women. And Weight Watchers thinks men are more apt to use its mobile tools, including its iPhone and Droid apps.

But the marketer is taking baby steps into the male market, choosing to plug its website, instead of its meeting-based business, which according to Marketdata generates most of the company’s $1.46 billion in yearly revenue. (Nutrisystem had $509 million in revenue in 2010 and Jenny Craig had $432 million, according to Marketdata Enterprises.)

Weight Watcher’s new campaign, which debuts Sunday, is by roster agency Interpublic Group of Cos.’ McCann Erickson. Ads will air mostly during news and sports programming, including the NBA playoffs on ABC and NHL playoffs on NBC. The spots attempt to be, well, manly. Real-life users plug a special men-only Weight Watchers website, which was first launched in 2007. The ads tout features such as a “Beer Cheat Sheet,” which details the Weight Watcher point values of various beers. The site is not “rainbows and lollipops,” says one guy on the ad. Another spot tries to urge men that it takes more than working out to lose weight: “All the guys think, ‘Do some crunches, that will make you thin right away.’ That just doesn’t work,” one user says.

Weight Watchers spent $132 million in measured media in 2010 on its various products, according to estimates from Kantar Media.

Convincing men that diet — and not exercise alone — is the secret to weight loss might be the biggest challenge the category faces. Guys tend to recall their younger days, when they were perhaps more active, and think “all I have to do is go back to that lifestyle,” said Karen Miller-Kovach, a registered dietitian and Weight Watcher’s chief scientific officer. But “it doesn’t work that way. You have to run a mile to burn 100 calories. You can eat a Double Stuf Oreo, and that 100 calories is gone.”

But the good news for guys? They get higher point allowances under the Weight Watchers system, even if they are the same size and weight as their female counterparts. That reflects the fact that men, on average, tend to have more “lean body mass,” or muscles, meaning that males have a higher metabolism on average, according to Weight Watchers.

There are also differences in how men and women approach dieting. “Men tend to be top-down thinkers,” said Ms. Miller-Kovach, author of “She Loses, He Loses,” a book on men, women and weight loss. “Their approach is ‘tell me what I’ve got to do and I don’t want to know all the details,’” she said. But, women “want to know every detail.” So on the Weight Watchers website, for instance, a man might pull up a quick “cheat sheet” to discover that a slice of Domino’s pizza would cost him six to seven points, while a woman might hunt around in the more extensive food database and find she could have a CiCi’s Pizza Buffet Pizza Chicken Pizza for just four points.

Nutrisystem — whose 28-day diet plans rely on special foods delivered to a customer’s doorstep — first launched its men’s program in 2005. The company late last year rolled out a general-market campaign that features real people. It was first launched by indie shop DonatWald & Haque of Santa Monica, Calif., but the two parties have now parted ways, according to a person familiar with the matter. Nutrisystem declined to comment other than to say it works with “several agencies.”

For guys, Nutrisystem focuses on “low-glycemic good carbs” including “man food” such as burgers, pizza and hearty beef stew to “keep them satisfied while losing weight,” a company spokesperson said. In a video posted on the brand’s YouTube site, Mr. Marino seems to be taking Weight Watchers on, saying: “Guys don’t want to go to a meeting. They don’t want to read stuff in books and worry about counting calories. You tell ‘em you eat this food, you eat it the right way and you stay on it and you’re going to lose weight.”

Ms. Callan countered that with Weight Watchers, “you can actually eat real food in the real world” vs. a “boxed burger and microwave pizza.”

Jenny Craig, meantime, seems to be combating one of its natural disadvantages in the men’s game — that it’s named after a woman. Mr. Alexander is the face of a campaign launched in February called “Jen Works for Men.” In one ad called “Line of Men”, he appears with 10 male clients who have lost weight in the program. Mr. Alexander, who says he lost 30 pounds in the program, wrote and directed the ads.

An unexpected guest is coming to the NBA playoffs this weekend — Weight Watchers. Yes, squeezed between ads urging men to drink this beer, buy that car and bank here will be one that tells them how to lose weight.
Advertising Age Embedded Player
Watch a spot from the new Weight Watchers campaign
Buzzkill? The folks at Weight Watchers don’t think so, which is why they are putting some $10 million behind their first ad campaign targeted specifically at men. “Although we are predominantly female, we do have a decent percentage of men following the program,” said Chief Marketing Officer Cheryl Callan. Since launching a men-only website in 2007, “we’ve seen a lot more male success stories come though,” she added. “And that inspired us to think we have an opportunity here.”

Weight Watchers, the biggest player in the $3.3 billion commercial-weight-loss category, is following the lead of its smaller competitors, which have been after men for a while. Nutrisystem has for years relied on celebrity spokesmen, such as former NFL greats Dan Marino and Don Shula. And Jenny Craig last year added actor Jason Alexander to its stable of star endorsers, joining Valerie Bertinelli, Sara Rue, Carrie Fisher and others.

The companies are all trying to move the needle in a category that has leaned heavily on women. Roughly 90% of clients are female, according to Marketdata Enterprises, which tracks the category. “It’s been like that because men tend to want to lose weight on their own by working out in a health club or designing their own exercise program, and they are less likely to join groups or seek counseling,” said John LaRosa, president of the Florida-based market researcher.

But Weight Watchers — whose customer base is 90% female — says it has noticed an uptick in male interest. For instance, Ms. Callan said the marketer got encouraging feedback when a man made a cameo in an ad geared at women. And Weight Watchers thinks men are more apt to use its mobile tools, including its iPhone and Droid apps.

But the marketer is taking baby steps into the male market, choosing to plug its website, instead of its meeting-based business, which according to Marketdata generates most of the company’s $1.46 billion in yearly revenue. (Nutrisystem had $509 million in revenue in 2010 and Jenny Craig had $432 million, according to Marketdata Enterprises.)

Weight Watcher’s new campaign, which debuts Sunday, is by roster agency Interpublic Group of Cos.’ McCann Erickson. Ads will air mostly during news and sports programming, including the NBA playoffs on ABC and NHL playoffs on NBC. The spots attempt to be, well, manly. Real-life users plug a special men-only Weight Watchers website, which was first launched in 2007. The ads tout features such as a “Beer Cheat Sheet,” which details the Weight Watcher point values of various beers. The site is not “rainbows and lollipops,” says one guy on the ad. Another spot tries to urge men that it takes more than working out to lose weight: “All the guys think, ‘Do some crunches, that will make you thin right away.’ That just doesn’t work,” one user says.

Weight Watchers spent $132 million in measured media in 2010 on its various products, according to estimates from Kantar Media.

Convincing men that diet — and not exercise alone — is the secret to weight loss might be the biggest challenge the category faces. Guys tend to recall their younger days, when they were perhaps more active, and think “all I have to do is go back to that lifestyle,” said Karen Miller-Kovach, a registered dietitian and Weight Watcher’s chief scientific officer. But “it doesn’t work that way. You have to run a mile to burn 100 calories. You can eat a Double Stuf Oreo, and that 100 calories is gone.”

But the good news for guys? They get higher point allowances under the Weight Watchers system, even if they are the same size and weight as their female counterparts. That reflects the fact that men, on average, tend to have more “lean body mass,” or muscles, meaning that males have a higher metabolism on average, according to Weight Watchers.

There are also differences in how men and women approach dieting. “Men tend to be top-down thinkers,” said Ms. Miller-Kovach, author of “She Loses, He Loses,” a book on men, women and weight loss. “Their approach is ‘tell me what I’ve got to do and I don’t want to know all the details,’” she said. But, women “want to know every detail.” So on the Weight Watchers website, for instance, a man might pull up a quick “cheat sheet” to discover that a slice of Domino’s pizza would cost him six to seven points, while a woman might hunt around in the more extensive food database and find she could have a CiCi’s Pizza Buffet Pizza Chicken Pizza for just four points.

Nutrisystem — whose 28-day diet plans rely on special foods delivered to a customer’s doorstep — first launched its men’s program in 2005. The company late last year rolled out a general-market campaign that features real people. It was first launched by indie shop DonatWald & Haque of Santa Monica, Calif., but the two parties have now parted ways, according to a person familiar with the matter. Nutrisystem declined to comment other than to say it works with “several agencies.”

For guys, Nutrisystem focuses on “low-glycemic good carbs” including “man food” such as burgers, pizza and hearty beef stew to “keep them satisfied while losing weight,” a company spokesperson said. In a video posted on the brand’s YouTube site, Mr. Marino seems to be taking Weight Watchers on, saying: “Guys don’t want to go to a meeting. They don’t want to read stuff in books and worry about counting calories. You tell ‘em you eat this food, you eat it the right way and you stay on it and you’re going to lose weight.”

Ms. Callan countered that with Weight Watchers, “you can actually eat real food in the real world” vs. a “boxed burger and microwave pizza.”

Jenny Craig, meantime, seems to be combating one of its natural disadvantages in the men’s game — that it’s named after a woman. Mr. Alexander is the face of a campaign launched in February called “Jen Works for Men.” In one ad called “Line of Men”, he appears with 10 male clients who have lost weight in the program. Mr. Alexander, who says he lost 30 pounds in the program, wrote and directed the ads.

Just turn on your TV and check out the annual barrage of resolution-exploiting ads from health-club operators such as Bally Total Fitness and Life Time Fitness. And, indeed, the first week has been no different, except that virtual health clubs have entered the fray as well in a play to steal would-be weight losers from their bricks-and-mortar competitors.

NBC
WHO’LL BE THE BIGGEST LOSER? Web programs such as that of ‘Loser’ trainer Jillian Michaels are a cheaper alternative to gyms. On its face, the trend creates some awkward dynamics: Consider the ad onslaught for an online weight-loss program from NBC’s “Biggest Loser” trainer Jillian Michaels, which touts a gym-free program of dieting and exercise to drop pounds. Surely that’s unwanted — not to say cheaper — competition for, say, the biggest sponsor of the “Biggest Loser,” gym chain 24-Hour Fitness, no?

Tony Wells, chief marketing officer at 24-Hour Fitness, thinks otherwise. “We don’t view it as competitive,” he said, adding that “Biggest Loser” has been an “incredible partner.” “Fitness isn’t just what happens when you’re inside a gym.”

The show’s executive producer, Mark Koops, concurred, noting robust sales of Ms. Michaels’ DVDs throughout the show’s six-year run on NBC. “There’s a larger agenda to the show than just the commercial interests, although those are certainly important,” he said. “We’re trying to encourage people to adopt a healthy lifestyle any way we can.”

Analysts, for their part, largely agree, noting that because only 18% of U.S. adults belong to a health club, the online programs may actually be expanding the potential customer pools for health clubs by selling new consumers on a more-active lifestyle.

‘Social aspect’
Tom Shaw, who covers publicly traded club chains for Stifel Nicolaus, said the online plays appeal directly to consumers who — like Ms. Michaels’ trainees on “Biggest Loser” — may be intimidated by crowds of more-fit people in a gym setting.

For those who aren’t intimidated, Mr. Shaw said, there’s a reason countless workout DVDs — and VHS tapes before them — haven’t hurt the health-club business. “There’s a social aspect to going to a health club that you can’t get through a computer or a television,” he said.

While that certainly is the case when considering workout videos, it’s not necessarily so online.

Nike proved as much with its Nike Plus sports kit, which measures, records and shares running times and distance in a manner that allows users to compete in virtual global road races, and compare running notes while connecting on online forums. (It also allows runners to share their times and distances on social-media sites such as Facebook.)

Ms. Michaels’ program tries to create online social networks, offering people a list of people by age, fitness level and geography to help them find “weight-loss buddies” and through online message boards.

Cutting back
It’s unclear as of yet whether users will find that social aspect as satisfying as a health club, but, from the industry’s perspective, it’s surely a less-than-opportune time to welcome cheaper competitors. While health-club membership rolls have been surprisingly resilient to date, there are clear signs that members are becoming increasingly cost conscious.

Life Time Fitness, one of two publicly held chains, saw membership rolls increase during the third quarter, but the average “in-center” revenue per membership declined by $104 during that time, meaning members are paying their dues but cutting back on personal training and other goods and services sold at the gym.

The other public company in the category, Town Sports International, saw a similar trend of member cutbacks, but also saw a 3.3% total revenue decline during the first nine months , as memberships fell.

But if industry types are concerned about clubs’ vulnerability to cheaper, online alternatives during these tough economic times, they’re not admitting it.

“When you look at the videos and things that have come before, I don’t think it’s incrementally a new challenge,” said Sharon Zackfia, a Chicago-based analyst for William Blair. “Paying for it is the motivation to do it.”

Wii Fit
“The next [online site] that does [pose a threat] will be the first,” said Michelle Boyko, VP-Wally Boyko Productions, which publishes the National Fitness Trade Journal. “If they have the motivation to work out at home, they don’t need a computer to do it.”

Mr. Wells, of 24-Hour Fitness, said younger workout enthusiasts were increasingly open to non-gym alternatives. He pointed to the success of Nintendo’s Wii Fit workout system, which 24-Hour sells branded workout kits for.

“If you look at Generation X and Generation Y, they’re open to fitness delivery not being confined to one space,” he said. “So we’ll see what role other forms of fitness instruction and advice will play.”

Just turn on your TV and check out the annual barrage of resolution-exploiting ads from health-club operators such as Bally Total Fitness and Life Time Fitness. And, indeed, the first week has been no different, except that virtual health clubs have entered the fray as well in a play to steal would-be weight losers from their bricks-and-mortar competitors.

NBC
WHO’LL BE THE BIGGEST LOSER? Web programs such as that of ‘Loser’ trainer Jillian Michaels are a cheaper alternative to gyms. On its face, the trend creates some awkward dynamics: Consider the ad onslaught for an online weight-loss program from NBC’s “Biggest Loser” trainer Jillian Michaels, which touts a gym-free program of dieting and exercise to drop pounds. Surely that’s unwanted — not to say cheaper — competition for, say, the biggest sponsor of the “Biggest Loser,” gym chain 24-Hour Fitness, no?

Tony Wells, chief marketing officer at 24-Hour Fitness, thinks otherwise. “We don’t view it as competitive,” he said, adding that “Biggest Loser” has been an “incredible partner.” “Fitness isn’t just what happens when you’re inside a gym.”

The show’s executive producer, Mark Koops, concurred, noting robust sales of Ms. Michaels’ DVDs throughout the show’s six-year run on NBC. “There’s a larger agenda to the show than just the commercial interests, although those are certainly important,” he said. “We’re trying to encourage people to adopt a healthy lifestyle any way we can.”

Analysts, for their part, largely agree, noting that because only 18% of U.S. adults belong to a health club, the online programs may actually be expanding the potential customer pools for health clubs by selling new consumers on a more-active lifestyle.

‘Social aspect’
Tom Shaw, who covers publicly traded club chains for Stifel Nicolaus, said the online plays appeal directly to consumers who — like Ms. Michaels’ trainees on “Biggest Loser” — may be intimidated by crowds of more-fit people in a gym setting.

For those who aren’t intimidated, Mr. Shaw said, there’s a reason countless workout DVDs — and VHS tapes before them — haven’t hurt the health-club business. “There’s a social aspect to going to a health club that you can’t get through a computer or a television,” he said.

While that certainly is the case when considering workout videos, it’s not necessarily so online.

Nike proved as much with its Nike Plus sports kit, which measures, records and shares running times and distance in a manner that allows users to compete in virtual global road races, and compare running notes while connecting on online forums. (It also allows runners to share their times and distances on social-media sites such as Facebook.)

Ms. Michaels’ program tries to create online social networks, offering people a list of people by age, fitness level and geography to help them find “weight-loss buddies” and through online message boards.

Cutting back
It’s unclear as of yet whether users will find that social aspect as satisfying as a health club, but, from the industry’s perspective, it’s surely a less-than-opportune time to welcome cheaper competitors. While health-club membership rolls have been surprisingly resilient to date, there are clear signs that members are becoming increasingly cost conscious.

Life Time Fitness, one of two publicly held chains, saw membership rolls increase during the third quarter, but the average “in-center” revenue per membership declined by $104 during that time, meaning members are paying their dues but cutting back on personal training and other goods and services sold at the gym.

The other public company in the category, Town Sports International, saw a similar trend of member cutbacks, but also saw a 3.3% total revenue decline during the first nine months , as memberships fell.

But if industry types are concerned about clubs’ vulnerability to cheaper, online alternatives during these tough economic times, they’re not admitting it.

“When you look at the videos and things that have come before, I don’t think it’s incrementally a new challenge,” said Sharon Zackfia, a Chicago-based analyst for William Blair. “Paying for it is the motivation to do it.”

Wii Fit
“The next [online site] that does [pose a threat] will be the first,” said Michelle Boyko, VP-Wally Boyko Productions, which publishes the National Fitness Trade Journal. “If they have the motivation to work out at home, they don’t need a computer to do it.”

Mr. Wells, of 24-Hour Fitness, said younger workout enthusiasts were increasingly open to non-gym alternatives. He pointed to the success of Nintendo’s Wii Fit workout system, which 24-Hour sells branded workout kits for.

“If you look at Generation X and Generation Y, they’re open to fitness delivery not being confined to one space,” he said. “So we’ll see what role other forms of fitness instruction and advice will play.”

As noted by AppleInsider and Patently Apple, the U.S. Patent and Trademark today published a patent application from Apple describing an iOS application designed to support Health Club / Fitness Center, fitness and personal training functionalities. The integrated application can provide a full fitness center experience by introducing potential new customer to a Health Club / Fitness Center and then motivating them to return to the Health Club / Fitness Center as active members. For example, the integrated application can provide functions to introduce new customers to a Health Club / Fitness Center , can provide functions to motivate customers to join and actively visit the fitness center, can provide in-gym motivation, and can provide post-workout motivation. Apple breaks the application down into four categories: introducing users to fitness facilities in their areas, encouraging them to join and participate, motivating them while using the facilities, and post-workout motivation to return and continue their fitness program. The application offers capabilities to permit Health Club / Fitness Center to reach out to potential customers with introductory offers and coupons, potential integration with fitness equipment for tracking performance, and social aspects to allow users to motivate each other.
The patent application was filed in October 2009 and is credited to Stan Ng, a longtime Apple product manager and marketing director, and Michael Hailey, a former Apple marketing manager who is now employed at Nike. Apple of course has a long-standing partnership with Nike dating back to pre-iOS iPods to offer Nike+ running and training integration. Apple has also previously expressed interest in developing digital fitness companion software for its portable devices, indicating that the company has been working through a number of concepts for how to potentially enter the market.

As noted by AppleInsider and Patently Apple, the U.S. Patent and Trademark today published a patent application from Apple describing an iOS application designed to support Health Club / Fitness Center, fitness and personal training functionalities. The integrated application can provide a full fitness center experience by introducing potential new customer to a Health Club / Fitness Center and then motivating them to return to the Health Club / Fitness Center as active members. For example, the integrated application can provide functions to introduce new customers to a Health Club / Fitness Center , can provide functions to motivate customers to join and actively visit the fitness center, can provide in-gym motivation, and can provide post-workout motivation. Apple breaks the application down into four categories: introducing users to fitness facilities in their areas, encouraging them to join and participate, motivating them while using the facilities, and post-workout motivation to return and continue their fitness program. The application offers capabilities to permit Health Club / Fitness Center to reach out to potential customers with introductory offers and coupons, potential integration with fitness equipment for tracking performance, and social aspects to allow users to motivate each other.
The patent application was filed in October 2009 and is credited to Stan Ng, a longtime Apple product manager and marketing director, and Michael Hailey, a former Apple marketing manager who is now employed at Nike. Apple of course has a long-standing partnership with Nike dating back to pre-iOS iPods to offer Nike+ running and training integration. Apple has also previously expressed interest in developing digital fitness companion software for its portable devices, indicating that the company has been working through a number of concepts for how to potentially enter the market.

Gold’s Gym at 2701 Black Road closed Thursday without giving notice to members.

Harris Bank initiated foreclosure proceedings against Gold’s in November and a receiver was appointed about three weeks ago, said Joliet attorney George Barr, whose company Barr Group also owns space in the commercial condo complex that houses the gym.

In 2005, Gold’s bought 35,000 square feet of space, which housed the former Charlie Club, of 2701 Black Road LLC, which founded the development about 30 years ago, said Barr, one of the LLC investors.

There was confusion Thursday morning when office workers and gym customers seeking an early-morning workout all found locked main doors to the building. Gym staff used to unlock the doors to the building when they opened because there were no separate doors for Gold’s, Barr explained.

That situation was rectified later Thursday when a temporary wall was erected to block access to the gym and the main doors were opened.

Matthew Nix, the court-appointed receiver, said he is referring customers with inquiries about membership refunds or personal property left in the gym to the gym’s owner.

“We just directed people to the Gold’s Gym phone number and ownership,” he said. “We’re just responsible for the mortgaged property.”

Calls to the Gold’s Gym number were answered by a recorded message that said staff was busy “assisting other customers.”

Nix said he did not close the business, but it was closed by the gym’s owner. Barr said the business is owned by Fitness Enterprises. No one from the company could be reached for comment Thursday.

The original Gold’s Gym was founded in Venice Beach, Calif., in 1965. It offers franchise ownership opportunities and has more than 600 locations around the world, according to www.goldsgym.com.

Gold’s Gym at 2701 Black Road closed Thursday without giving notice to members.

Harris Bank initiated foreclosure proceedings against Gold’s in November and a receiver was appointed about three weeks ago, said Joliet attorney George Barr, whose company Barr Group also owns space in the commercial condo complex that houses the gym.

In 2005, Gold’s bought 35,000 square feet of space, which housed the former Charlie Club, of 2701 Black Road LLC, which founded the development about 30 years ago, said Barr, one of the LLC investors.

There was confusion Thursday morning when office workers and gym customers seeking an early-morning workout all found locked main doors to the building. Gym staff used to unlock the doors to the building when they opened because there were no separate doors for Gold’s, Barr explained.

That situation was rectified later Thursday when a temporary wall was erected to block access to the gym and the main doors were opened.

Matthew Nix, the court-appointed receiver, said he is referring customers with inquiries about membership refunds or personal property left in the gym to the gym’s owner.

“We just directed people to the Gold’s Gym phone number and ownership,” he said. “We’re just responsible for the mortgaged property.”

Calls to the Gold’s Gym number were answered by a recorded message that said staff was busy “assisting other customers.”

Nix said he did not close the business, but it was closed by the gym’s owner. Barr said the business is owned by Fitness Enterprises. No one from the company could be reached for comment Thursday.

The original Gold’s Gym was founded in Venice Beach, Calif., in 1965. It offers franchise ownership opportunities and has more than 600 locations around the world, according to www.goldsgym.com.

General Manager J.R. Ruis understands how tough it is for some of his longtime members at YouFit Health Club in Miami to pay even the rock-bottom monthly fee of $10.

“The unemployment center next door is busy all the time,” Ruis said. “And the center for children and families upstairs is real busy, too.”

The recession hasn’t spared swanky health clubs, either, including the Downtown Athletic Club on the 15th floor of Miami’s Wachovia Tower, which last year lost 200 to 300 members as nearby law offices, banks and architectural firms laid off employees.

In the 2005-2006 fiscal year, there were 393 licensed health clubs and fitness centers in Miami-Dade and Broward counties. Now there are 349, a drop of 44 or 12 percent.

It has become survival of the fittest in the $19.5-billion health-club industry.

The result: a buyer’s market for those wanting to sweat away stress and get healthy — especially important if you’ve lost your job and health insurance.

To keep members and lure new ones, many South Florida fitness centers have cut membership costs and waived initiation fees. But the biggest gain for gym consumers is a new industry trend: elimination of long-term contracts.

“They’re doing that for survival purposes,” said Terry McElroy, spokesman for the Florida Department of Agriculture and Consumer Services, which licenses and regulates health clubs.

“The fact is people used to be perfectly willing to pay for a year membership,” McElroy said. “They are not now for obvious reasons. They do not know if they will be working and do not want to lay out all that money at once.”

Michael Collier, general manager of 2-year-old Snap Fitness 24-7 in North Miami, agreed: “The last thing a lot of people want to do now is be locked into a contract when they don’t know what tomorrow will bring.”

Snap is waiving its $60 initiation fee and running a $1-a-day promotion, which is paid $30 per month, a $9 savings over its usual monthly fee.

YouFit, a St. Petersburg-based chain with five South Florida locations, charges $10 a month with no contracts for basic facilities offering lots of cardio equipment.

“Our goal is to be the best value in fitness,” said J.J. Creegan, director of brand development. “It’s easy to join, easy to cancel.”

LA Fitness, with 20 Miami-Dade and Broward gyms, has done away with contracts and begun offering family memberships that cover up to four people for $90 a month.

Gold’s Gym, with five South Florida outlets, has cut its membership fees by about 20 percent and begun offering month-to-month plans.

“I do think the industry had to remold itself during the recession,” said Anthony Johnson, manager of Gold’s Fort Lauderdale gym, which did a $500,000 upgrade last year, adding personal televisions and iPod docks on the cardio-training machines.

“People just couldn’t afford to keep coming.”

Membership is climbing again, Johnson said, after dropping about 25 percent in early 2009.

Fitness aficionados who’ve kept their gym memberships are using them more. Average health club attendance increased to an all-time high of 102 days , according to the International Health, Racquet & Sportsclub Association.

“In hard times, people need something to break the stress and exercise becomes your ally,” said Bill Higgs, general manager of Shula’s Athletic Club in Miami Lakes.

Nonetheless, Higgs said, revenues are down about five percent at the gym named for former Miami Dolphin coach Don Shula.

“When it comes down push to shove, and your home is foreclosed or something like that, you might not have much of a choice,” said Higgs, who has added kids’ programs and sponsored a weight-loss contest open to the community. “It’s still tough out there.”

Some South Florida clubs have gone the extra mile for unemployed members, allowing them to slide a month or two on payments or even work out for free.

“I have a very personal gym where everybody knows everybody,” said Chris Russo, owner of Miami Shores’ MPower Project Fitness.

“If somebody who’s worked their [butt] off for years and finds themselves in a crappy position, I’ll tell them: `Come in and pay when you can.’ ”

The 14-year-old gym is running a sale, offering membership for $99 down and $29.95 month.

“Would I have done that three years ago?” Russo asked. “Probably not.”

Loyalty can be a two-way street. Adrienne Jarrett, 55, an administrator at the University of Miami Center on Aging, said she began taking her lunch to work and shopping for clothes at thrift stores, but won’t skimp on workouts at MPower Project.

“It makes me feel fantastic and healthy,” Jarrett said. “I walk a little taller. Smile a little more.”

Harold Stowe, 59, said he’s being eating out less to afford his MPower membership. He lifted his shirt to reveal a six-inch scar on his chest.

“Quadruple bypass,” said Stowe, who is retired. “My doctor said I should exercise 30 minutes a day and I don’t have the will power to do it at home.”

The 26-year-old Downtown Athletic Club took a proactive approach to its declining membership. It offered two-month free memberships to laid-off members, pumped about $500,000 into a new cardio center and bolstered its classes and basketball league.

At the same time, new downtown condo buildings began filling with residents and Wells Fargo moved into Wachovia Tower.

The net result: “We’ve picked up what we lost and added 15 to 18 percent,” said Bryant Samson, general manager of the gym with a bird’s-eye view of the city. “We’re now ahead of our best year ever.”

Then there’s the über-upscale Equinox Fitness Clubs, which costs about $135 a month and is banking on members’ vanity.

Equinox’s three South Florida clubs have not slashed prices, said chief operating officer Scott Rosen, and instead have upgraded with the newest generation in spin bikes, eco-friendly towels and high-end shampoo, conditioner and body wash.

“In Florida, a lot of people are body conscious,” Rosen said. “You can do without another meal at China Grill, but you can’t do without Equinox if you want to look good on the beach.”

General Manager J.R. Ruis understands how tough it is for some of his longtime members at YouFit Health Club in Miami to pay even the rock-bottom monthly fee of $10.

“The unemployment center next door is busy all the time,” Ruis said. “And the center for children and families upstairs is real busy, too.”

The recession hasn’t spared swanky health clubs, either, including the Downtown Athletic Club on the 15th floor of Miami’s Wachovia Tower, which last year lost 200 to 300 members as nearby law offices, banks and architectural firms laid off employees.

In the 2005-2006 fiscal year, there were 393 licensed health clubs and fitness centers in Miami-Dade and Broward counties. Now there are 349, a drop of 44 or 12 percent.

It has become survival of the fittest in the $19.5-billion health-club industry.

The result: a buyer’s market for those wanting to sweat away stress and get healthy — especially important if you’ve lost your job and health insurance.

To keep members and lure new ones, many South Florida fitness centers have cut membership costs and waived initiation fees. But the biggest gain for gym consumers is a new industry trend: elimination of long-term contracts.

“They’re doing that for survival purposes,” said Terry McElroy, spokesman for the Florida Department of Agriculture and Consumer Services, which licenses and regulates health clubs.

“The fact is people used to be perfectly willing to pay for a year membership,” McElroy said. “They are not now for obvious reasons. They do not know if they will be working and do not want to lay out all that money at once.”

Michael Collier, general manager of 2-year-old Snap Fitness 24-7 in North Miami, agreed: “The last thing a lot of people want to do now is be locked into a contract when they don’t know what tomorrow will bring.”

Snap is waiving its $60 initiation fee and running a $1-a-day promotion, which is paid $30 per month, a $9 savings over its usual monthly fee.

YouFit, a St. Petersburg-based chain with five South Florida locations, charges $10 a month with no contracts for basic facilities offering lots of cardio equipment.

“Our goal is to be the best value in fitness,” said J.J. Creegan, director of brand development. “It’s easy to join, easy to cancel.”

LA Fitness, with 20 Miami-Dade and Broward gyms, has done away with contracts and begun offering family memberships that cover up to four people for $90 a month.

Gold’s Gym, with five South Florida outlets, has cut its membership fees by about 20 percent and begun offering month-to-month plans.

“I do think the industry had to remold itself during the recession,” said Anthony Johnson, manager of Gold’s Fort Lauderdale gym, which did a $500,000 upgrade last year, adding personal televisions and iPod docks on the cardio-training machines.

“People just couldn’t afford to keep coming.”

Membership is climbing again, Johnson said, after dropping about 25 percent in early 2009.

Fitness aficionados who’ve kept their gym memberships are using them more. Average health club attendance increased to an all-time high of 102 days , according to the International Health, Racquet & Sportsclub Association.

“In hard times, people need something to break the stress and exercise becomes your ally,” said Bill Higgs, general manager of Shula’s Athletic Club in Miami Lakes.

Nonetheless, Higgs said, revenues are down about five percent at the gym named for former Miami Dolphin coach Don Shula.

“When it comes down push to shove, and your home is foreclosed or something like that, you might not have much of a choice,” said Higgs, who has added kids’ programs and sponsored a weight-loss contest open to the community. “It’s still tough out there.”

Some South Florida clubs have gone the extra mile for unemployed members, allowing them to slide a month or two on payments or even work out for free.

“I have a very personal gym where everybody knows everybody,” said Chris Russo, owner of Miami Shores’ MPower Project Fitness.

“If somebody who’s worked their [butt] off for years and finds themselves in a crappy position, I’ll tell them: `Come in and pay when you can.’ ”

The 14-year-old gym is running a sale, offering membership for $99 down and $29.95 month.

“Would I have done that three years ago?” Russo asked. “Probably not.”

Loyalty can be a two-way street. Adrienne Jarrett, 55, an administrator at the University of Miami Center on Aging, said she began taking her lunch to work and shopping for clothes at thrift stores, but won’t skimp on workouts at MPower Project.

“It makes me feel fantastic and healthy,” Jarrett said. “I walk a little taller. Smile a little more.”

Harold Stowe, 59, said he’s being eating out less to afford his MPower membership. He lifted his shirt to reveal a six-inch scar on his chest.

“Quadruple bypass,” said Stowe, who is retired. “My doctor said I should exercise 30 minutes a day and I don’t have the will power to do it at home.”

The 26-year-old Downtown Athletic Club took a proactive approach to its declining membership. It offered two-month free memberships to laid-off members, pumped about $500,000 into a new cardio center and bolstered its classes and basketball league.

At the same time, new downtown condo buildings began filling with residents and Wells Fargo moved into Wachovia Tower.

The net result: “We’ve picked up what we lost and added 15 to 18 percent,” said Bryant Samson, general manager of the gym with a bird’s-eye view of the city. “We’re now ahead of our best year ever.”

Then there’s the über-upscale Equinox Fitness Clubs, which costs about $135 a month and is banking on members’ vanity.

Equinox’s three South Florida clubs have not slashed prices, said chief operating officer Scott Rosen, and instead have upgraded with the newest generation in spin bikes, eco-friendly towels and high-end shampoo, conditioner and body wash.

“In Florida, a lot of people are body conscious,” Rosen said. “You can do without another meal at China Grill, but you can’t do without Equinox if you want to look good on the beach.”