I’ve written extensively about a brand I love, OrangeTheory Fitness. It’s here and here and here and here. Yes, I’m a raving fan.
When I decided to take a 30-day break to heal my hamstring I’ve been nursing since pulling it in February, I was shocked at OTF Corporate’s “maintenance fee.” A small $15 fee for the right to come back as a customer at my current membership rate.
I love the business of business through and through. I’m a Capitalist at my core. And, I have strong beliefs about how companies should earn money.
Why does a company earn money? Quite simply, it solves a problem or relieves a pain point more effectively than other marketplace options.
I felt really put off by the fee because I couldn’t see any way that it was earned. At my core, it is a fundamental business mistake. Unless, I’m not seeing something, which is certainly possible, I can’t make the business case for justifying the $15 fee. It decreases loyalty. It adds no value. It does not enhance the customer experience. It is a tremendous risk at future recurring revenue. It is not a risk/reward profile I’d advocate. It’s not a decision where I could align my values.
When you’re a raving fan and there is a disjoint in values, you can get fired up. I did. And, you know what? It wasn’t about OTF. It was the innate business radar I have in me. It could have been Joe’s Tire Shop for all I care. All I know is that everything I know about business says this is a short-sighted decision. This isn’t about creating a world-class experience.
It’s the classic National Lampoon’s Christmas Vacation, “Jelly of the Month Club” scene. Good in theory; bad in practice. Enjoy the chuckle.
“Sometimes things look good on paper, but lose their luster when you see how it affects real folks. I guess a healthy bottom line doesn’t mean much if you have to hurt the ones you depend on.”
Just because you can get away with charging your customers doesn’t mean that you should. Your brand and your customers you serve should be more important. And, if your barometer of righteousness is that “everyone else is doing it,” then you are just another Corporate lemming headed off the cliff of irrelevancy – ready to be easily displaced by the newcomer who is smarter, faster and more serving.
What’s the fee that you’ve paid that really got you pissed? Comment below.
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