A Study On The Current State Of Price And Pricing Strategies For Profitable Fitness Clubs In China

Fitness Clubs have a short history in China; its market is not very mature and there is a lack of rational thinking in its theory. So at present, the price of Fitness Clubs becomes the primary standard when evaluating the quality of its service products, because it is quite new to the consumers and they cannot pre-evaluate their exercising effects.From the angle of economics, the moving of price is closely related to costs, profits and currency, following economic rules.At one hand, the studies of price is not unified among the economists, especially the sports theorists, because of the short history of market economy in China; on the other hand, for a long period, the charge of mass sports in China is free, so the coming of profitable Fitness Clubs leads to the problem of evaluating the pricing of fitness services.The services of Fitness Clubs have its own features distinguished with the common commodities and services: the need of active participation of the consumers and the difference with the sports service markets. So it has become the most urgent need to consummate the pricing strategies for Fitness Clubs in China.This study is carried out applying methods of literature reviews, statistics, logical inducing, on spot and Internet investigations and interviews. The primary finds are listed here, including the characteristics of service products, management and pricing theories and strategies of Fitness Clubs in China:1. The evaluation of values of Fitness Club service should base on the theory of "Utility-Value Theory", which emphasizes the subjective feelings and evaluation of the consumers.2. The major way of payment of Fitness Clubs in China is membership card system, with various forms of discounts for the consumers, especially for student consumers.3. The scale of investment is very significant different with the variations of the price, larger investment leads to higher price.4. Geographic factors show very significant variations with the price. There is great difference in price between the developed and undeveloped areas.5. The pricing strategies should be made concerning the distinguished features of fitness services and management of Fitness Clubs.6. The factors influencing the price of Fitness Clubs in China include macroscopical and microcosmic factors. In microcosmic factors, the significantly correlated factors are: scale of investment, income of consumers and the direct level of tutors.7. Chain store management should be applied in the management of Fitness Clubs in China, while its current situations show a lack of the amount and quality.8. The pricing strategies of Fitness Clubs should be chosen according to the reality, the consumption ability and psychology of the consumers, and the reality of their competitors.9. The recommended strategies for the Fitness Clubs in China at present are: periodical pricing strategy, grade pricing strategy, psychological pricing strategy, and segmented pricing strategy.