The Concept of Free: What Are Your Customers Worth?

Teddy Kim

I talk to a lot of gym owners and lately many of these conversations center around the so-called "race to the bottom" endemic to box gyms. Gyms that have been around for a while look askance at new entrants to the market and heap scorn on Groupon specials, cut-rate memberships, and other perceived offenses to the bottom line.


“These other gyms are practically giving it away,” the complaint goes. “How can my business compete with free?”


I empathize, but no amount of hand wringing will make the problem go away. Rather than lose sleep over low-priced competitors, consider that you might need a small change in perspective. It's actually very easy to compete with free, and many successful businesses are doing so. Let's look at some real world examples:


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