Fraud Tip of the Day - January 11

Are gym initiation fees a scam?

If you're asked to pay an initiation when joining a gym, you may be asking yourself whether this is really necessary or a scam.

If you intend to join a local gym this January, you're not alone. January is when gyms see their largest increase in membership. That's not surprising since getting back in shape is such a popular New Year's resolution.

For some, joining a local gym is a first-time experience; others are renewing their commitment to exercise. Either way, you will find yourself signing on the dotted line at some point and making out a check for gym membership. There's nothing wrong with that since many of these gyms are for-profit endeavers.

However, there's one fee that's not quite as set in stone as the gym's salespeople would lead you to believe. I'm talking about the gym's one-time initiation fee.

Gym initiation fees are basically no more than commisions for sales staff. The higher the initiation fee, the higher the paychecks for the sales staff. Knowledge of this will give you a distinct advantage when you're negotiating your membership. If you play your cards right, you won't have to pay this fee at all.

How to avoid paying initiation fees

In some cases you can negotiate a smaller initiation fee than you're first quoted. When you first hear the words "initiation fee" get up and start walking to towards the door. They need you more than you need them. Every city has countless gyms to choose from and sales staff know this more than anyone. If you make a stink about it you can probably get the salesperson to magically waive the entire fee. At the very least you should get a counteroffer far below the original quote. If they don't budge, shop around. Whatever you do, don't pay a high initiation fee. Trust us, a move towards the door should lower the fee if not eliminate it.

Just remember this should you be planning on joing a gym: when it comes to gym memberships, all fees are negotiable.