Gee, I thought we had it tough when the Gold's in our area recently stopped supplying sweat towels.

Gold's gyms are franchised owned (at least the locations I know). The franchisees seem to be able to set their own policies without regard to corporate.

I'm not sure how far you'll get contacting Gold's Gym corporate since all their gyms (besides a few in SoCal) are franchised. And from what I understand of the gym franchise, franchise owners set their own rates (I know that's true for Powerhouse Gym - I have a old friend that owns one and basically the franchise agreement entitles him to use the name, buy their products at a substantially reduced rate, and get discounts on equipment for select suppliers).

In most major cities full service gyms are a dime a dozen. For me, money talks for my workouts - I take my money where I'll get the best bang for my buck. If my local gym pulled this, I'd walk. Obviously they don't care given the manager's attitude.

BBB and City AG is the way to go on this one, since they're franchised and you've already dealt with the local management.

@kraftmayo: Better Business Bureau doesn't actually do anything.

Just quit and find another gym. It's obvious they don't want to stay in business.

Is there something going on with Gold's in general? We've got a similar situation by me.

I just prepaid for membership through the end of next year. I thought I was getting a great rate ($20/m, prepaid... compared to the year before where I paid $40/m prepaid!)

Now, they're changing their name to "Just Fitness" and charging $10/m - month to month!

It's frustrating :( I wish I could find a good, honest gym that doesn't play these stupid pricing games!

I understand the OP's concerns, but I welcome a change in the way gym memberships are handled. If I could join a gym (even just for access to the fitness equipment) for $10 or $15 bucks a month w/o a contract, I would. I think a lot of people don't join gyms because of the contracts.

@saerra: About a year ago, we joined Lifetime Fitness and they offered a special rate to new customers. About 2 weeks after we signed the paperwork, they offered a special deal, we called them up to complain and with noarguement they adjusted our plan to give us the better deal.

Ever since Planet Fitness gyms opened up in this area there has been a steady defection from Gold's and other local fitness clubs. PF is pretty basic BUT they're open 24/7 in many locations (weekends 7-7 here). I signed up @ $10 a month when they first opened, and that offer repeats occasionally.

With the economy the way it is a LOT of us are looking into alternatives; little wonder Gold's is retooling their membership plans.

@saerra: Two different gyms in my city do this as well. Depending when you sign up, you can pay more or less than the person working out next to you.
I've noticed other businesses (i.e. cable companies and banks) do this to attract new members. While they have promotional prices for new customers, there is NO reward for being a long-standing customers.

I remember calling gyms just to get basic rates and would usually be answered with, "I can connect you with one of our sales/fitness associates," or a variation thereof; many times it required my having to come in. I don't think so, Tim...

When it's obvious a business is making people jump through hoops to pad fees and have their resident used-car-salesman gull customers into bindingly cut-throat contracts, (like the behavior that sunk the Nautilus franchises) it's only a matter of time until that business tanks.

Remember in the 80s and 90s when gyms would hoodwink their customers into signing contracts that would be binding even if the gym went out of business/closed or went bankrupt? The customers were legally still on the hook for their memberships!

Sounds like they still haven't learned about customer alienation. When they quit viewing their customers as ATMs to be milked, they'll have longer operation histories.

As far as the Gold's gym manager's notion of "word-of-mouth and rumor," that will blow up in his face. Consumerist is all about spreading word-of-mouth.

From what I can tell reading the story, the complaint is that theyre charging about 15 bucks less a month for what the current members are paying 40 for...I didn't see a mention of any services that are now missing entirely (paying 10 extra for the pool and the courts, that I see, but no mention of it being removed from her plan).

I'm a bit confused...

@Audiyoda:

Franchisee's still have to abide by the rules and systems set into place by the franchisor. It may well be that the franchisor does NOT have any policy about this, but it wouldn't hurt to let them know that the actions of one of their locations are now being published on a national website. As you mentioned, maybe Gold's franchising system simply allows franchisees to use the name and nothing else, but a good franchised system will have standard policies and practices that are applicable to all locations, which is one of the benefits of buying a franchise. Your customers will know how you operate. I walk into a McDonalds in California I can be pretty sure it's going to be much like a McDonalds in New York. Likewise, I've heard more bad stories than good about Gold's, and therefor I now associate the Gold's name with bad service. Maybe the franchisee near me is a good guy, but the bad franchisees have now hurt his chances to gain a new customer.

Oh, and as far as the approach to this problem, this is my take:

They are stealing from you by rewriting the terms you agreed to without your consent or consultation. This is nothing more than bad faith razzle-dazzle.

Make a big/huge/massive stink right out of the gate for two reasons: One, they know exactly what they are doing; both by refusing to commit the changes to writing and pretending ignorance.

You are the customer. It should not be up to you to run between officers to find out about their shenanigans.

Two, they will continue to do this as long as customers take a polite approach. They are trying to legally and knowingly screw you through contract loopholes and the only way to deal with this type of unethical treatment is to escalate as soon as possible, as loudly as possible.

I'm talking a mass mailing (a business letter, something they can't just hit "delete" over,) to each member of the board of directors of Gold's gym, detailing the nonsense, and promising to make this the genesis of a website. Many times the threat is sufficient.

Look here for the usual suspects: [investing.businessweek.com]

Bottom line: You should not have to tolerate this crap, the runaround, and the time from your schedule making inquiries into a clearly dishonest policy; after holding up your end on the agreement.

Additionally, if possible, you could just quit then rejoin at the lower rate. Just don't put up with it.

@coren: I don't think any drop in services has actually occurred? It is POSSIBLE that the old members will not be charged extra for the classes. That would be fair.

@saerra: There's a gym near me that seems to get it right. They don't offer any sort of contract. All memberships are month-to-month and have been for over 10 years. Current price is $41 per month, and that goes up by $1/month every six months.

The cost to join is the same as a month's membership fee, but they then give you a fitness check and an hour of a personal trainer's time.

They bring in new machines constantly. Equipment is rarely in disrepair. They have plenty of sweat towels and dry-off towels available through the shower and locker-room facilities.

The only downside is that it's so popular that it can be difficult finding equipment to use during the peak times, but since they're open 20 hours a day, its easier to go at times they are not so busy.

I suspect the reason this gym is so popular is because they don't play games with people's money. They say "this is what this costs per month, take it or leave it. If you take it, great! If you leave it, we're not gonna come looking for you."

And just so everyone knows, I am not affiliated in any way with this place. I know this sounded like an advertisement, so that's why I will not be revealing the name of said gym to anyone!

But know that there are gyms out there that stay in business because they know how to treat consumers consistently well. Not all gyms play the asinine games.

Sounds to me like they're trying to drum up more business by getting new customers in the door. I'm sure this is probably a limited time promotion as well.

Sucks to be the people who just missed the promotion, but when they signed the contract, they agreed to those terms, and knew that going in. Its like being on an airplane. You and the guy next to you are going the same place, but I guarantee you that one of you paid more for the ticket.

Also, what if they raised prices? Then I'm sure the OP wouldnt have any complaints, since they agreed to the lower rate. If you agree to a price, and sign up for a service at said price, you expect the company to honor it, and I'm sure they expect the same from you.

@boomerang86: I like Planet Fitness because of the lack of sleaze. Something that most clubs are lacking. I almost got screwed on a contract from Work Out World and I don't think I would sign up for a contract again. I would start working out at home.

If there is a PF in your area it will be difficult for the others places to enforce a contract.

It seems to me that the usual response to a materially adverse change of contract should apply here. I would definitely go the state AG route, because this is affecting a lot more people than just you, with the addition of small claims court to recover costs for yourself while you are waiting.

@Hanshiro: What crap? All I hear is whining because new people are paying a lower, seemingly promotional rate. The OP is not actually losing anything, but rather is just jealous and pissy that she prepaid at a higher rate.

@henrygates: It's obvious that they'll get more members at the new, lower rate. And from what I can gather, the old members aren't losing a damn thing. They're just not getting the cheaper price that new members get.

@JollyJumjuck:

Depending when you sign up, you can pay more or less than the person working out next to you.

@supercereal: Then you aren't reading thoroughly. There were rumors of benefits cuts, the inability to get written verification of what her continued benefits were, and a general indifference to the perfectly natural and expected reaction to people who object to paying twice as much for the same service.

This is what causes customers to leave; they feel taken.

You may want to promote the attitude that customers are 'just jealous and pissy,' and perpetuate treating your customers with such a "you f*cked up, you trusted us" policy, but it's the fastest way to lose customers.

It explains a lot about Gold's desperately incompetent and ill-planned price roll-out.

@JollyJumjuck: I agree with your view, except to note that we've had the same cable company for 3 years now and continue to pay the promo rate. Why? Because the first salesman we had misrepresented the promo rate as the permanent one, and we threw a fit when the promo period ran out and they tried to jack up our rates. We threatened to leave and they agreed to pay us a lower rate in exchange for our continued patronage! ;) First time I've ever succeeded in a fight with the cable company.

@SlappyWhite: My sentiments exactly. She should feel lucky that her membership expires next month- she can sign up for the cheaper rate.

I likened this to any supplier, such as Verizon or a high speed internet provider. If your contract is up, you might find yourself in a great position to grab the current promotional offers. But once you agree on that particular offer, you can't get mad when 2 months after they have a better promotion going on and demand "take backsies."

This is what you agreed to, and it sucks. Won't hurt to create a stink about it, but you are in a position to cancel your current contract and re-sign up at the promotional rate. If the other people at the gym are raising hell about it, let them fight the battle with the AG and corporate. It doesn't make sense for you to.

So she pays $40.00 a month which included all classes, child care, the pool, and longer hours.

New members pay $15.00 a month for only the gym, $25.00 for ONLY, gym plus basketball/racquetball courts and pool.

So for $40.00 a month she's getting more services then new members are getting at $25.00.

I don't see any problem.

@Hanshiro:

There were rumors of benefits cuts, the inability to get written verification of what her continued benefits were

@Jack O'Neill: What about $93 fee for which she gets nothing?

Maybe I am misreading the article, but is this really anything new? Cell phone/cable/satellite/Internet providers have been doing this for decades. I pay $20/month for cable Internet and my ISP is currently running a special for new subscribers for $14.99/month for the same speed I am paying for. Most companies that lease out equipment as well are not only accepting new customers for less money, but they are also providing them with newer equipment. My Dish Network receiver is 5 years old and is horrible and Dish won't send me a new one. They say that I have to buy it retail, yet new subscribers get nice new receivers and pay less each month.

This way of doing business certainly sucks for the more loyal customers, but it's not something that is limited to Gold's Gym.

The OP's complaint is clear, thoughtful and well-reasoned.

The management's response is evasive, opaque and unprofessional.

I hope the OP becomes a serious thorn in this gym's side and gets them to handle this matter properly.

You signed a CONTRACT that they are legally obligated to honor. End of story.

@Verucalise-WelcomeBethany: On another note, I'm still confused as to what each package offers. I can see the membership fee has dropped, but I'd like to see a clear cut breakdown from the OP as to what the current rate lets you access at the gym VS. the new rate.

@supercereal: "Rumors and hearsay are irrelevant. And unable to get written verification? How about her contract? She entered into it when she signed up, and as a result, she'll continue to get what she paid for."

There are far from irrelevant when the manager uses such methods to communicate policy changes:

C., frankly, did not care. He placed all of the blame solely on T., the aerobics manager, for her lack of communication to members. He likened it to buying a car, and then three weeks later the car is on sale. Well, that's kind of a different situation because he didn't pay more for a car that now is missing the radio, seatbelts and works only half the time.

That indicates to me, as per the quote from the employee at the counter that possible changes were coming. The customers fears are not unfounded and it's reasonable to seek reassurance that her benefits, already paid for, won't change.

I explained to C. that I had expected a letter detailing the changes to my membership plan (as these were material changes, and could invalidate my contract), but it seems that C. thought word-of-mouth and rumor was a better way to handle it. This was further reinforced by an instructor, who told our class that she was told that by C. himself.

It's pointless for me to cut-and-paste what is clearly written at the top of the post, supercereal. She's feeling exploited and cannot get answers from the management.

This was an extremely poorly handled stunt, however much you wish to push a "tough sh*t," rule. Gyms that treat their customers that way will fold. They could have done a couple dozen things to keep her happy instead of adopting the indifferent attitude that has alienated her. Notwithstanding the conditioning principle that this gym apparently wants to instill in potential customers, "Don't join yet, the prices may go down." That'll have customers lining up...elsewhere.

No worries; right next to the "For Rent" sign, they can mulishly proclaim their inflexible business savvy: "We are Out of Business, but we were right! dammit" Heckuva business plan...

Costco is offering 2 year membership at 24hr fitness for $249. It's a much better deal if you ask me.

@JollyJumjuck: There is sometimes a reward for being a long-standing customer if you bring it up and threaten to cancel. My dad did that with our cable company, because AT&T was offering better deals and the U-Verse thing sounded sweet. We didn't have DVR yet. Our cable company (WOW) gave us DVR free plus a couple chunks of movie channels free. It wasn't an empty threat, either. My dad was planning to switch to AT&T.

@supercereal: I kind of agree with you here. It truly does suck that the current members at the OP's gym are paying so much more, but a LOT of gyms (around here, at least) are slashing prices because otherwise gyms are a luxury most people can't afford anymore. I think I saw $9/mo at a place a few miles down the road. I should call them lol.

@wrjohnston19283: In my experiences most 'franchise' gym owners simply want the name. The single nationwide exception is Bally's which are corporate gyms.

I agree that a good franchise system 'should' have standardized policies and practices in place - but I've worked out at gyms throughout the country including many Gold's - I don't think I've run into one franchise gym that's run the same from place to place.

Another thing to consider is the lowest common denominator here - most employees are gyms are generally gym rats. Nothing against them and I'm not trying to be stereotypical, but honestly many of them are not the sharpest tools in the shed. They eat, work, and workout - day in and day out as my friend (the Powerhouse Gym owner) would say.

@tbax929: It seems like a trade-off at most gyms. $15/mo without a contract is insanely cheap. Usually it's more expensive than usual if you go without a contract, and if you go with a contract, the monthly rate is less.

@twophrasebark: That appears to be levied only if she voluntarily opts to cancel her contract and re-register at the new rate. In short, she wants to pay the new-member price, yet still receive the additional benefits she currently gets by paying a higher price.

But what's she going to say? She has rumors that things might be changing, but no proof. According to her, nothing about her contract has changed -- she's still getting everything she committed to. Until the club actually changes something concerning her (other people getting different rates and services in THEIR contracts are irrelevant to HER contract) she has nothing to talk to the AG about.

To recap her situation:
1) Things are definitely changing for new customers and current customers when their contracts expire.
2) There are rumors of material changes which may OR MAY NOT happen and may OR MAY NOT affect her current contract.
3) She doesn't think the manager is doing a proper job of addressing these rumors.

Right now, I think the AG could care less.

@boomerang86: I just signed up there. Thanks for letting me know. All I wanna do is go on the elliptical a few times a week and use the weights. I don't need all the frills! What does the rate go up to after the 12 months at $10?

@DerangedRoleModel:
You fellow readers & commentors thank you for preventing my usual BBB rant (which ends in a fade to CCCS).

@italianscallion33: PF is perfect for your basic workouts -- I signed up for their $99/year promo awhile back, and I've got no complaints. I believe the "normal" rate is $19.99/month...at least in my area.

@coren: The hours are going to be cut, and there are plans to cut back on the classes, or cancel them entirely.

@Verucalise-WelcomeBethany: That's the problem, she can't get them pinned down to WHAT is included in each membership. And as for her membership expiring next month, it sounds like she might have to fork over $93 to get the new rate. Again, not sure she can pin C. down on that, either.

C. needs to man up and put IN WRITING exactly what is going to happen, or the current members need to walk. Maybe she should speak with a new member and compare their contracts.

@supercereal: @Jack O'Neill: Yeah, I'm with you guys. It looks to me like she bought a bushel of apples and now wants to switch to the small bag of oranges.

@frank64: @Audiyoda: @henrygates: OP here! There's a YMCA across the street, but then I have to deal with screaming kids, and it costs way more for a single person. We have LA Fitness moving in, but it's still nine miles away. Sigh.

@coren: OP here! They are cutting hours, getting rid of child care (doesn't affect me, no kiddos), and probably making us pay for classes, while we still pay the higher rate through the end of our contract, while new members pay a lower monthly fee (and also pay for classes). At least, I think. Again, no communication...