How Equinox Turned Fitness Into a $4,000-a-Year Habit

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SoundTikTok sound · original sound - wallstreetjournal

Promoted product

Equinox

Equinox+ | Health & Fitness App

4 videos4 creators

Why it worked

The video effectively breaks down the high cost of Equinox membership and ancillary services, making the "$4,000-a-year habit" relatable and understandable to viewers interested in fitness and luxury lifestyles.

Summary

This video explores how Equinox has transformed fitness into a luxury habit, costing members around $4,000 annually. It details the company's strategy to increase revenue through ancillary services and expansion into wellness offerings, despite a crowded market.

Structure

1Introduction to Equinox's luxury fitness model
2Market competition and Equinox's strategy
3Member spending breakdown and future projections
4Detailed monthly spending calculation by a member

Original caption

Equinox was a pioneer in luxury fitness, turning the traditional gym into a social club where members pay a premium for status and amenities. But as competitors crowd the high-end market, the brand is under pressure to maintain its dominance and increase member spending.

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Product placement

WSJ: This is a logo that appears in the corner of the video. Removing it would not change what happens in the video. Equinox: This is a fitness company. The video discusses its business model and member spending. Removing it would change what happens in the video. Celsius: This is an energy drink. It is mentioned as something the speaker does not include in their spending calculation. Removing it would not change what happens in the video.

On-screen text

WSJ How Equinox Turned Fitness Into a $4,000-a-Year Habit WSJ WSJ WSJ Equinox locations WSJ WSJ WSJ WSJ WSJ WSJ WSJ Equinox Member Spending Dues ~70% Ancillary Revenue ~30% - Personal Training - Spa Services - Smoothies - Other Purchases Total $4,000 Per Year Equinox Member Spending (Projection In 5 Years) Total $6,000 Per Year Harvey Spevak Executive Chairman, Equinox Group WSJ WSJ WSJ WSJ WSJ WSJ WSJ Typical monthly spending Membership $350 Personal Training 3 Sessions / Week @ $150 / Session $450 / Week @ 4 Weeks / Mo. Total ~$2,150 WSJ

Transcript

When you say oh I gotta go to Equinox people are like oh there's some money there. There definitely is a little bit of a allure to it. Equinox was a pioneer of luxury fitness. But today, the company operates in an increasingly crowded landscape, battling rival clubs for customers with lots of discretionary income. To stay ahead of the competition, the brand is looking to enter new areas, double down on existing markets and get members to spend more. I probably come about 5 days a week and on my off days, sometimes I'll come and I'll use the amenities like the sauna or I'll stretch. An average Equinox member spends a little bit over $4,000 a year with us. About 30-ish percent is what we call ancillary revenue. So it's the non-dues part of that revenue pie. And then what we believe is over time that $4,000 can grow probably around 50% to $6,000 in the next by both kind of normal increases in people buying more from us in terms of the personal training, the spa, the retail. But then in addition to that, we believe our offering will expand through more wellness and longevity offerings, and so that will increase what people will spend with us. My membership is about $350. My sessions, I usually do 3 sessions a week. So $150 times 3 equals $450, $450 times 4 equals $1,800, plus $350. I spend about $2,100 here, but that does not include— Wow, it's weird to say that. —it does not include protein shakes, my Celsius (energy drink), a random T-shirt if I find it.