No frills gym group to shake-up health club industry?

We all know that value doesn’t necessarily equate to price and, in business, there are many different ways (other than price) to provide value and secure sales.That said, there’s nothing more fascinating to watch than a start-up significantly undercutting the competition with a product that holds mass appeal. Budget airlines are the best example and Jamie Murray Wells’ Glasses Direct the most recent.I fancy John Treharne’s budget health club operation The Gym Group (TGG) to be the next.TGG’s first gym opened in Hounslow in June offering a flat membership rate of £14.99 per month with no contracts. Having secured £1m backing from Bridges Community Ventures, today it announced plans to open three more gyms this year and another 10 in 2009.Treharne, who previously launched and floated Dragons Health Clubs, is clear TGG is a ‘no frills’ offering. While the 160-station gym provides high quality exercise facilities you’d expect elsewhere, there’s no sauna, steam, spa or pool.The thinking is to “offer quality fitness facilities to a wider selection of the local community than can currently afford it”, says Treharne. Sounds like a plan in the current climate.

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