Opening a Fitness Club
You and a friend are planning to open a
new fitness club. You have researched two
clubs that offer the services you would like
to provide. These clubs offer the following
membership plans if you join for a year:
Workout Club
one month free,
then $35 per month
Get Fit Club
initial fee of $200, mostin
then $25 per month profitsiumcon
a
·
1. Develop a membership plan that will
I-
plan
make the fees for your club
I chose this
because the initial fee
competitive. The plan should attractGetcheaper
is than the
fit club and the
-
members and generate more income amount
need
customers
pay to each
than at least one of the other club
month
is
cheaper than the
&
plans.
workout club which
gives
my club the
opportunity
to
outshine
a) What is your plan?
the rest
. &
#) 750 initial
fee $30/month 's
to is
b) Explain how your plan will attract
, month
members.
c) Explain how your plan may result
in earning more profit than the
other clubs.
2. Suppose a potential member has
$1000 to spend. Which club offers
the best deal? Show your work.
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NEL Challenges 249