Personal Training at the New York Health Club

When a health club manager grows concerned about undisciplined pricing for personal training, how might he overhaul the club's rates?
Costis Maglaras  | Summer 2007
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As a senior manager for the New York Health Club, Tom is looking through his personal trainers' time cards when he decides something needs to change. Personal training, a significant source of revenue for the club, has undisciplined pricing as trainers negotiate their own rates, raising concerns with Tom for the potential for fraud. Tom also wonders if a stable pricing system might boost the club's revenue by, for example, implementing higher pricing during peak hours. To that end, he creates a member survey and begins to study the responses. In this case students recommend pricing strategies and create models for different scenarios after examining the survey and response data.

Case ID: 070201
Supplemental Materials: Solutions Spreadsheets , Student Dataset

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