This is how Planet Fitness came in and dominated the gym industry...

0:00They learned this in the gym space, which was if you had a rack of all court and a pool and all these things, people actually perceive that they were getting a lower percentage of the value because they only came for the pool or they only came for the basketball court. And so, even though it was like an all-in-one price, they were like, "Well, I'm only using 8%." And so, the reason Planet Fitness was able to come in and wedge themselves in the market is they just removed all the other stuff and said the vast majority of people use cardio and some people use [music] weights. And so, they just made the gym that way, priced it way lower, and then everyone's like, "Okay, cool. I use this." [music] I'm not even going to get into the consumption model of fitness, but like from the purchasing perspective, they're like, "Okay, I'm not going to waste my money by not using all these other features." [music]