HOW DO GYMS MAKE MONEY

@step

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Selling · Mobile App

Step

https://linktr.ee/step.mobile ↗

Why it worked

The video provides a counter-intuitive, 'insider' fact about a common consumer experience, which encourages high engagement and shares.

Summary

The creator explains the business model of gyms, highlighting how they rely on unused memberships to remain profitable. The video uses a gym setting to provide financial education, with a subtle mention of the Step mobile app in the caption.

Structure

1Hook posing the question about gym profitability
2Highlighting the discrepancy between membership fees and equipment costs
3Explaining the business model of relying on unused memberships
4Providing a concrete example with Planet Fitness capacity
5Concluding with a takeaway about gym attendance

Product placement

The product 'Step' is mentioned in the caption and linked in the bio, though not explicitly mentioned in the video content.

On-screen text

HOW DO GYMS MAKE MONEY You're only paying $30 a month.... Product Code: freemotion-i22-9-inc Price: $10,899.00 Not Yet Rated Product Code: FreeMotionEXT Price: $5,999.00 Well that's because... NEVER GO TO THE GYM 70% of memberships COMPLETELY UNUSED 300 PERSON CAPACITY 6,500 MEMBERS = no ONE SHOWS UP

Original caption

If everyone who signed up for the gym actually went it would be a disaster! #stepmobile #PersonalFinance #LearnOnTikTok #teenbanking #moneytips

More from @step

Their other posts in the index, biggest breakout first.

Transcript

How do gyms make money? You're only paying $30 a month to use equipment that's worth tens of thousands of dollars. The math is not adding up. Well, that's because the vast majority of people who sign up never go to the gym. In fact, almost 70% of memberships go completely unused, and gyms bank on that to make money. For example, a Planet Fitness can only fit like 300 people, but they have an average of 6,500 members per club. So next time you're mad that the gym is packed, just be happy that most of the members never even show up.