If you’re in Australia then of course you can visit the gym at 3am….

One of my favourite countries is Australia. I’ve got some good friends there who are lucky enough to be able to enjoy the sunshine, outdoor life and great food that is present in Australia. They are also a very sporty nation being strong in sports such as rugby, cricket and not to forget surfing!

They were visiting London recently and I was chatting to them (in a coffee shop whilst it was raining outside…) and they were talking about a new chain of gyms that has opened in Australia called Jetts Gym. What was unusual about the gym was that it was open 24 hours a day and was focused on providing great exercise equipment but eliminated the “fancier” parts of a health club such as saunas, Jacuzzis and spas.

They kept the quality of the gyms high but managed to reduce costs by using techniques such as:

  • Locating the gyms in residential areas to encourage people to shower and change at home (save costs by not having large changing facilities).
  • Using full time video surveillance and only using staff during the peak times (save on staff costs).
  • Removing expensive items such as Jacuzzis.

There were clear benefits to the customer in having 24 hour access and the cost of membership was approximately half of the price of the average gym membership in Australia.

Using Bowman’s strategy clock model where does Jetts fit?

I would argue that it’s a low price with a medium to high perceived benefit. Are we looking at a Hybrid on the clock?

Either way, I’m not convinced I’d be using a gym at 3 in the morning!

Rolling in it...
Here’s a question for you – what do you think the average age is of somebody who buys a new Rolls-Royce? Perhaps surprisingly the average[..]
An unexpected ending...
A lot of you may have been on business trips but I bet your trip wasn't as exciting (and tragic) as this gentlemen's trip was.[..]
Would you send a photo?
Picture the scene. You’re one of the largest supermarket chains in the Netherlands employing more than 100,000 people. You’re planning on introducing a new staff[..]
Ericsson fined $1 billion for bribery.
The Swedish telecommunications group Telefonaktiebolaget LM Ericsson (or Ericsson as most people refer to it as and how my spell checker prefers) is an incredibly[..]
Exams for sale....
One of the five fundamental ethical principles is Integrity. Being straightforward and honest is a vital characteristic of being a professional accountant. Most people who[..]
Wave hello to a discount
The accountants amongst you will be well aware of the different methods of setting the price of a product or service. Going rate, cost-plus and[..]