Latest / Inflation and Your Money with Fexingo: Protecting Purchasing Power and Beating Inflation / How Inflation Is Quietly Eating Your Gym Membership
Transcript
- Lucas: So the latest CPI print came in at 334.0 for May, up from 332.41. That's about a one-point-six percent annualized increase in the headline number. Not screaming, but not quiet either. Luna: And the ten-year breakeven is sitting at 2.24 percent. So the bond market is basically saying inflation is going to hover right around there for the next decade. Lucas: Right. And that kind of steady, predictable erosion is exactly what this show is about. It's not the dramatic stuff — it's the recurring bill that just creeps up a few dollars every year until suddenly you're paying forty percent more than you were five years ago. Luna: And you're talking about gym memberships, right? Lucas: I am. Because if you look at the Bureau of Labor Statistics data on 'fees for participant sports, excluding group lessons,' that category has gone up roughly eighteen percent since 2021. That's ahead of overall CPI over that period. Luna: So it's not just your imagination that your monthly dues have gone up. But what's driving it? Is it the big chains or the boutique studios? Lucas: Both, but for different reasons. Let's start with the big-box clubs — Planet Fitness, LA Fitness, 24 Hour Fitness. Planet Fitness, for instance, has been raising its classic card from ten dollars a month to fifteen in some markets. That's a fifty percent increase in the base price. Luna: And they frame it as 'we added new equipment and upgraded the locker rooms.' But the real reason is that their own costs have gone up — labor, utilities, equipment shipping. Lucas: Exactly. Their operating expenses have risen with inflation, and they have pricing power because switching gyms is a pain. You have to cancel, pay fees, find a new one, sign up again. So most people just absorb the increase. Luna: What about the premium chains like Equinox? I feel like they've been more aggressive. Lucas: Equinox has pushed initiation fees and monthly rates higher, but they've also added something that's quietly insidious: surcharges for 'premium' classes that used to be included. If you want to take the popular cycling class, that's an extra ten to fifteen dollars per session now. Luna: Wait, so the membership gets you in the door, but the stuff you actually want costs extra? That feels like the airline model — base fare plus bag fees plus seat selection. Lucas: It's exactly that. And it works because the base price looks reasonable on a billboard. But the average Equinox member is probably spending twenty to thirty percent more per month than they were three years ago, even if they go the same number of times. Luna: And the boutique studios — the Barry's, the SoulCycles, the hot yoga places — they're even more exposed because they don't have the economies of scale. Lucas: Right. A Barry's class in Manhattan now runs about forty-two dollars if you buy single sessions. That's up from around thirty-six in 2021. A seventeen percent increase in four years. And the studios argue it's rent and instructor pay, which is true. But the consumer feels it. Luna: So what's the smart play for someone who's trying to keep their fitness costs from eating into their budget? Lucas: First, look at your contract. If you signed up during a pandemic promotion, your rate may be locked in. But some gyms have clauses that allow them to raise rates with thirty days' notice. Check the fine print. Luna: And if you're month to month, you're more vulnerable. They can bump you whenever they want. Lucas: Second, consider the total cost per visit. If you go five times a week, a thirty-dollar monthly plan is dirt cheap. If you go twice a month, a forty-dollar plan is expensive per visit. Match the plan to your actual behavior. Luna: I also think people underestimate the value of the annual plan. Many gyms offer a discount if you pay up front for the year. That locks in the price and hedges against future increases. Lucas: If today's conversation helped you think about your own membership a little differently, the way these episodes stay ad-free is listener support. You can find us at buy me a coffee dot com slash fexingo. Luna: Yeah, it's a small way to keep the show going, and it's really appreciated. Lucas: So back to the broader picture. The ten-year breakeven at 2.24 percent means the market expects inflation to stay above the Fed's two percent target for a while. That has implications for all sorts of recurring expenses. Luna: And gym memberships are just one example. The same logic applies to streaming services, meal kits, even your phone bill. Lucas: The key is to recognize that these small increments compound. If your gym goes up by three dollars a month, that's thirty-six dollars a year. Over ten years, that's three hundred sixty dollars — and that's just one line item. Luna: And if you multiply that across a dozen subscriptions and memberships, you're talking real money. Money that could be going into an IRA or a vacation fund. Lucas: So here's one concrete takeaway: every January, when you see the new rate sheet from your gym, take ten minutes to calculate the percentage increase. If it's above the CPI — which is running around two and a half percent for services — then ask yourself whether you're getting that much more value. Luna: And if you're not, it might be time to switch or negotiate. Some gyms will honor the old rate if you just ask. Lucas: That's actually true. A friend of mine called his gym last month and said he was considering canceling because of the rate hike. They offered him the previous rate for another six months. It never hurts to ask. Luna: So the bottom line is: inflation is quietly eating your gym membership, but you have more control than you think. Lucas: You do. Audit your recurring expenses once a year, compare them to the inflation rate, and push back when you can. That's how you protect your purchasing power.