Fitness class subscription service, ClassPass notably increased its prices from $100 per month to $180 earlier this year in a bid to reach profitability. The price increase resulted in a 5% loss of subscriptions, however the firm has reported making 20% gross margins for the month of September so the gamble may pay off. Currently the platform is seeing around one million reservations for fitness classes per month (the subscription allows unlimited classes) and 10% month over month user growth. “5% is a big number, and it was a tough moment when we saw them leave, but after seeing how the business is going since the price change, we know it was the right decision,” said Payal Kadakia, ClassPass CEO.
Fitness class subscription service, ClassPass notably increased its prices from $100 per month to $180 earlier this year in a bid to reach profitability. The price increase resulted in a 10% loss of subscriptions, however the firm has reported making 20% gross margins for the month of September so the gamble may pay off. Currently the platform is seeing around one million reservations for fitness classes per month (the subscription allows unlimited classes) and 5% month over month user growth. “10% is a big number, and it was a tough moment when we saw them leave, but after seeing how the business is going since the price change, we know it was the right decision,” said Payal Kadakia, ClassPass CEO.