In 2024 Planet Fitness announced it would raise its Classic membership from $10 to $15 a month for new members only, its first price rise since 1998. It tested the new price in several markets first, and existing members kept paying $10. Grandfathering made a 50% increase almost churn-free, because nobody already paying saw a higher bill. The revenue phases in as members turn over.
Key takeaways
- If you've held a price for years, you probably have more pricing power than you think.
- Test the new price in a few locations before rolling it out.
- Grandfathering existing members removes the trigger to cancel.
- The trade-off: the revenue benefit phases in slowly as old members leave and new ones join.
- A premium tier (Black Card) gives both price-sensitive and value-seeking customers a home.
In The Subscription Playbook I shared some uncomfortable numbers about gyms.
About 80 percent of people who sign up for a gym membership cancel within six months. Half never make it through the door. To stay profitable, gyms can need up to ten times more paying members than they can fit in the building at once.
"It's possible," I wrote. "Plenty of gyms do it. But it's not the safest of subscription models out there."
Planet Fitness built America's largest gym chain on exactly that model. And it built it on a single number: $10 a month.
Why Did Planet Fitness Hold $10 for So Long?
Planet Fitness held its $10 price from 1998.
The "Classic Card" was deliberately cheap. The bet was volume: lots of members, many of whom rarely visit.
For people who want more, the higher-priced Black Card (now from $24.99 a month) adds guest privileges and access to every location.
So for 26 years, the headline price never moved.
How Did Planet Fitness Raise the Price?
On its first-quarter earnings call in 2024, Planet Fitness announced it would raise the Classic membership to $15 a month for new members from that summer.
That's a 50% increase, and its first in 26 years.
| Before | After (from summer 2024) | |
|---|---|---|
| Classic, new members | $10 a month | $15 a month |
| Classic, existing members | $10 a month | $10 a month (grandfathered) |
| Black Card | Premium tier | From $24.99 a month (Oct 2026) |
Two things made this work.
1. It tested first
The company didn't guess. Then-CEO Craig Benson said:
"The 50% price hike comes after price-testing costs in multiple markets. Based on our learnings, we decided to change the price of the classic card to $15."
2. It grandfathered every existing member
Nobody already paying saw a higher bill. The CFO was upfront about the trade-off: "it will take some time for the benefit of the price change to expand our store level margins as the price increase will only be on new classic card memberships."
Why Does Grandfathering Make a Price Rise Almost Churn-Free?
Because the biggest trigger for cancellation after a price rise is the bill itself. (See our guide to churn rate for how to measure the damage.)
When an existing member sees their price jump, they stop and think: "Do I actually use this?" For a gym where many members rarely visit, that's a dangerous question to prompt.
Grandfathering means the question never gets asked. The new price applies only as fresh members join and older ones naturally leave. The risk of a cancellation wave is close to zero.
The cost is speed. Here's roughly how the revenue phases in.
How a grandfathered price rise phases in (illustrative)
Assume 1,000 Classic members at $10, a 3% monthly churn rate, and every departing member replaced by a new member at $15. The churn rate is made up to show the method.
- Today: 1,000 x $10 = $10,000 a month
- After 12 months: about 694 members still at $10 and 306 at $15 = about $11,530 (+15%)
- After 24 months: about 481 at $10 and 519 at $15 = about $12,600 (+26%)
Raising everyone to $15 at once would add 50% immediately, but only if nobody left. You'd break even on revenue even if a third of members cancelled (1 - $10/$15 = 33%). Grandfathering gives up that speed in exchange for almost no risk.
You can run your own numbers in the Price Increase Simulator.
Model your own price rise before you announce it
See the MRR impact of a price increase and the churn you could absorb with the free Price Increase Simulator.
Why Did Planet Fitness Keep the Black Card?
Because one price can't serve everyone.
The Classic Card is for the price-sensitive member who wants a cheap gym near home. The Black Card is for the member who values extras: bringing a friend, using any location. Keeping both means the price rise on Classic doesn't push value-seekers away, and doesn't force budget members into something they don't want.
That's the Member Benefits model from the book in action: pay more, get access to things other members can't.
My take
I think most small business owners are more scared of raising prices than they need to be. Planet Fitness held $10 for 26 years. When it moved, it tested first, protected existing members and gave the market a premium option. That's a recipe any gym, clinic or cafe can follow, with much less risk than a blanket rise.
What You Can Steal From Planet Fitness
- Test the new price somewhere small first. One location, one channel or one month's sign-ups.
- Grandfather existing members. It removes the cancellation trigger.
- Keep a premium tier. Price-sensitive and value-seeking customers both need a home.
- Be honest about the timeline. Tell your team (and your bank) that the benefit will phase in over a year or two.
- Decide when grandfathering ends. Holding an old price forever can become its own problem if your costs keep rising.
Our full guide on how to raise prices without losing customers covers the other options, and the price increase email templates help you write the announcement.
What About Raising Gym Prices in Australia?
Australia has no single statutory notice period for subscription price rises. Your contract sets the rules, but a term letting you raise prices one-sidedly, without letting customers leave without penalty, may be unfair. Grandfathering sidesteps most of that, because existing members' prices don't change.
From 1 July 2027, new subscription laws add rules on disclosure, notices and cancellation. This is general information as at October 2026, so read raising subscription prices in Australia and get advice for your situation. Our gym membership pricing guide has illustrative price points and tier examples.
Free Subscription Profit Review
Australian business owners can book a free 30-minute review with a BPAG Accountants adviser. An honest conversation about:
- whether a subscription model could work for your business
- how recurring revenue could cover your fixed costs each month
- how it could lift what your business is worth
No cost, no obligation. General information only until we understand your situation.
Frequently asked questions
How much is Planet Fitness now?
Planet Fitness raised its Classic membership to $15 a month for new members from summer 2024. Its premium Black Card, which adds guest privileges and access to every location, is listed from $24.99 a month as of October 2026. Prices can vary by location and fees may apply, so check Planet Fitness's memberships page for current figures.
Did existing Planet Fitness members have to pay $15?
No. The increase applied only to new Classic memberships. Existing members kept paying $10. The CFO warned at the time that "it will take some time for the benefit of the price change to expand our store level margins as the price increase will only be on new classic card memberships."
What does grandfathering mean in pricing?
Grandfathering means existing customers keep their old price (or old plan) when you raise prices for new customers. It protects goodwill and removes the main reason people cancel after a price rise: a bigger bill. The cost is that your revenue lift arrives slowly, only as existing customers leave and new customers join at the higher price.
How did Planet Fitness decide on $15?
It tested. Then-CEO Craig Benson said: "The 50% price hike comes after price-testing costs in multiple markets. Based on our learnings, we decided to change the price of the classic card to $15." Testing in a few markets first let the company see how sign-ups responded before committing nationwide.
Should I ever raise prices for existing customers too?
Sometimes, yes, especially if your costs have risen sharply or the grandfathered price is losing money. Give clear notice, explain what customers get, and offer options such as an annual plan at the old monthly rate. In Australia, check your contract terms and the unfair contract terms rules before changing existing customers' prices.
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Robert Coorey, MBA
Robert is the author of The Subscription Playbook and Feed a Starving Crowd and a Director at BPAG Accountants in Sydney. More about Robert.
Sources
- CBS News, Planet Fitness raises membership fee for first time since 1998 (2024)
- Fox Business, Planet Fitness to increase membership fee for first time in nearly 30 years (2024)
- Planet Fitness, memberships page (checked Oct 2026)
Facts and prices checked 27 October 2026. Spotted something out of date? Tell us.