Joel Neoh’s funding strategy to maximize equity : Page 2 of 2

Gym owners happy but some reaction from full paying members

Joel Neoh’s funding strategy to maximize equity : Page 2 of 2DNA spoke to two fitness club owners about their tie-up with KFit, and while they are happy KFit has sent new customers their way (especially during off-peak periods), Chui Lee of Fitology noted that some of their own members have recently raised concerns about KFit members. [Edited for accuracy.]
Lee explained, “Their issue with this is that, they are paying RM150 a month for their membership while KFit members are not members of our gym but enjoy the same facilities and privileges.”

Joel Neoh’s funding strategy to maximize equity : Page 2 of 2

 “I will have to soon start limiting the classes or hours that KFit members can use our facilities, otherwise we will end up cannibalizing our market.”, Lee added.

Meanwhile Mike Lamb of CHi Fitness (pic, right), which allows KFit users three visits per month, has had no such issues.  He feels KFit is doing a good job at turning more Malaysians into fitness enthusiasts.

CHI Fitness, which has 15 centres in Malaysia and 15,000 members, does not see KFit as a threat and has embraced the "fitness pass" concept. 
"KFit is attracting more people to give 'fitness a go' and allows newcomers the chance to try out multiple fitness centres and indeed a variety of fitness related activities.  We take the view that whilst we may lose a few members to KFit, we will also gain members as individuals will come to us through KFit and after trying multiple outlets, will select us as their preferred gym and opt for a full-time membership with us," he says.

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