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London operators cut prices amid recession
Sport and leisure facilities across the capital have set their prices at 'inflation busting' levels to attract members in the tough economic climate.
The Leisure Pricing Report showed that gym membership prices have gone up by just 3.6 per cent this year – below the 4.6 per cent rate of inflation. The increases also lag behind last year’s average increase of 3.9 per cent.
Twenty six of the thirty three London Boroughs have set price charges below, or in-line with, inflation to compete in the current economic climate. The London Borough of Sutton has the highest percentage increase in charges at 10.4 per cent and the London Borough of Greenwich had the lowest increase at 1.8 per cent.
Leisure consultant Nigel Baker Bates said that operators need to look at all factors when deciding on their pricing policy.
"When looking at setting or reviewing prices just looking at price movements compared with your competitors isn't enough,” he added. “You also need to understand your customer and your market to get the pricing right.”
Baker also pointed out that lowering prices can sometimes have surprising outcomes. Woking Borough Council dropped its monthly gym charge from £49 to £35 for 2008-9. As a result, membership uptake increased from 650 to 2,000 with membership income growing by 85 per cent from £194,000 to £352,000.
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