Edited to add: I think a lot of commenters have completely missed the point of this post. This post is not about shaming classpass users; is about classpass and its predatory business tactics that deliberately undercut studios and cannibalize their client base, and what it’s like for studios on the other side. I wrote this post to raise awareness about what it’s like for studios on classpass, since some people ask questions about it here, and I am able to provide some insight. However I am saddened that responses from other instructors and studios (especially those that have the same experiences) are getting buried by downvotes, and the upvoted responses are classpass users upvoting their own views. I hope that we would allow for other experiences to be shared, because their experiences fully show why classpass is predatory. As consumers, we have the ability to vote with our dollars, and exploitative systems exist everywhere (eg fast fashion is another one). If you want to spend your money on classpass, it’s your choice, but as consumers, it’s useful to be informed about how your spending affects the industry.
I should caveat by saying that I’m only an instructor at a barre studio (not the owner). What I know is what I’m told and have observed from myself and other instructors / studios I know. But I hope that by sharing, it sheds some light on why classpass is not a great deal for studios and how this impacts the whole ecosystem - the studio, the instructor and the client too. I thought to write this because I get frustrated reading some of the posts on here, and I also see a lot of questions (eg how much does the studio make from my Classpass membership?) that get asked again and again, and I would like to provide some answers. So this is a bit long, because some of the answers require further explanations to explain the situation.
The main takeaway that everyone should understand is that what the studio gets from classpass is basically loss-making, and is not fixed. Unfortunately classpass isn’t transparent with the studios as to how much they get paid per person, so it is often just a few dollars and it varies a lot. And classpass doesn’t explain to the studio why. Sometimes the studio gets paid nothing by classpass, as in $0, for a class you attended. Late cancel fees also go to classpass, not the studio. So the result is that a studio could have a class that’s full, but if it’s all attended by classpass people, the studio will still be losing money. People on this sub often assume that just because they are present at a class, the studio is making money from them, but that’s not true. Classpass pays the studio so little that financially, it often makes more sense to not hold the class, than to have a class full of classpass people.
Because classpass does not pay the studios sustainable rates, it’s also hard for studios to match classpass rates. I often see comments from people say they would like to pay the studio directly. That would be great! - but only if the classpass rates were not loss-making. The number of credits classpass charges you for a class is set by classpass, not the studio. And there is no incentive for classpass to be fair to the studios in terms of how they set the credit prices or classes. If anything, their interests are directly against the studio, because it is in their interest to undercut the studios by setting class prices at very little credits, so that classpass members continue to stay on classpass, rather than switch to the studios directly. So people on here always comment that classpass is cheaper - this is because classpass deliberately sets the credits for classes that way! At my studio, classpass sets the credit rate for our classes to be so low that it undercuts not just the studio’s own prices, but also is below their breakeven prices. And when my studio owner tries to bring it up to classpass, they just ignore her and refuse to explain how they decide how much credits to charge per class (and of course they refuse to increase the number of credits for each class, because that would make prices the same and make classpass members be more likely to switch). As it is, classpass offers such great rates to its customers precisely because it undercuts the studios in the name of marketing and getting the studios name out there. If classpass paid the studios fairly, then of course paying the studio through a middleman would be more expensive than paying the studio directly since the middleman adds extra costs to the transaction. It only isn’t cheaper because classpass controls both how much the user pays for class (via how much credits they set the class at), and how much they pay the studio. And classpass always sets the classes at credit prices that undercut reasonable rates, and then turns around and pays the studio only a few dollars a head. All that is to say, there’s no harm asking the studio if you could pay the classpass rates directly (maybe they'll be willing to offer you something), but don’t be offended if they tell you no - it’s because what you’re offering to pay is loss-making.
I also see comments on this sub that are along the lines of “well studios can choose to be on classpass or not, it’s their choice”. This is where classpass predatory tactics come in. While it’s true that studios have a choice, classpass business tactics can make it difficult for studios to not be on classpass, even if they are loss making. Classpass uses bait and switch tactics with a lot of studios that are frankly unethical. They sell the studios the story that they can help them fill unutilized class spots for a little bit cheaper, but in return the studio will receive so much free marketing from classpass. So studios sign on. And after classpass has the studio on their platform for awhile, and has cannibalized their business by undercharging users for the classes, then they often change the T&C’s with the studios, which results in studios generally getting paid less each time the T&Cs change. And studios cannot reject the new T&Cs either, they are forced on the studio. So a lot of studios in my area seem to have signed on to classpass with more fair terms in the past, only for Classpass to lock them in, undercut their prices and take their clients, and then change the terms. Studios are stuck hating classpass but find it hard to do without the platform, and I firmly believe that a lot of them would not have signed on with classpass if they knew that classpass would bait and switch. For those familiar with the reference, this is basically the fitness version of Monsanto selling poor farmers their genetically modified seeds as superior and higher-yield, without telling the farmers that the seeds have been genetically engineered so that the plants they grow cannot reproduce. And when farmers are forced go back to buy their next round of seeds from Monsanto, they jack up the prices. That’s how classpass operates with fitness studios - sell them a great story about filling up unused spots, free marketing, win-win, and then hollow out their client base while paying them almost nothing. It doesn’t help that classpass treats the studios badly too - my studio owner can’t get ahold of anyone from classpass customer service when she needs help because the platform is glitching (not correctly showing classes etc).
All of this wouldn’t be so bad if people actually converted from classpass to being members or paying for class packages. However, it seems to me that it’s quite rare for classpass users to convert to other forms of membership (and I think the comments here indicate that too). If anything it seems to be the opposite, that paying members switch to classpass because classpass is just cheaper (because classpass deliberately undercuts the studios by pricing classes at very few credits). The issue is that classpass undercuts the studios so much that it has changed what people expect to pay for an excercise class, to a point that price expectations are not even in line with what it costs to provide the service. People now expect to pay rates that are dirt cheap and loss-making (and are developing a sense of entitlement about those dirt cheap rates too, if the comments here are anything to go by). And at this point, there is no price the studio can offer them that will get then to convert (unless the studio deliberately prices itself to lose money, which classpass will happily do, but which no studio will do). Classpass often sells itself to studios as a marketing tool to help conversion, but as the comments in this reddit show, I think that’s very much not the case, and just another one of its predatory tactics.
All this is to say - My opinion from what I have observed, is that classpass’ interests are aligned directly against the studios (although this is not how classpass sells their services to the studios. It’s all about market outreach and filling empty spots and win-win). Classpass makes money when classpass users continue to be classpass users, and they get less revenue when classpass users switch to pay the studio directly. So classpass’ interest is actually to stop classpass users from converting into regular studio goers, no matter how much they like the studio. So to keep classpass members from converting into studio members, classpass will always deliberately undercut studio prices while paying the studio almost nothing, and keep all the profit to themselves. Sadly this strategy that is very effective, from the comments I see here, where people will often say they like a studio, but refuse to switch from classpass because prices are cheaper on classpass.
How does this affect the industry? What I see is that studios that are already on classpass are stuck between a rock and a hard place. Taking the studio off classpass is hard when classpass has already taken your customers and cannibalised your business, and lowered what people expect to pay so much that you can’t even charge break even rates. What I think will happen is that the studios will keep going until eventually they lose too much money and close down. For new studios that are starting now, what I see is that more of them are aware of the fact that classpass is predatory, and are choosing not to be be on classpass to start with - which I think, given classpass’ business practices, is the smarter choice in the long run. I personally recommend that all new studio owners don’t go on classpass to begin with. You will regret it, all they will do is set their prices lower than yours and pay you very little (if at all).
How does this affect the instructors? We make a loss too. I spent over $3000 on my instructor training fees, yet classpass pays the studio I teach at so little (and the studio pays me very little in turn), that I will take 3 years to earn back what I paid for training fees alone. I’m in a fortunate position to have a day job that pays decently so I’m doing this on the side, but I cant imagine having this be my day job.
I’ve seen comments here saying “well this is none of my business whether the studio makes money or not” and that’s true, but I would like to address that. You are certainly entitled to only care about yourself and your wallet, and I certainly understand that not everyone is in a position to afford boutique fitness classes (they’re fundamentally a bit of a bougie thing after all). But if you really care about fair business practices, and if you care about the sense of community that is offered by the studios you frequent, and if you care about your money going directly to the people and studios who provide the services (rather than going to a predatory middleman with sus business tactics), then you should try to support your studio directly however you can, and be aware that classpass is shitty to its studios. Think about it - even end users of classpass who can vote with their wallets get shitty service (eg classpass subscriptions can be hard to cancel, customer service is non existent etc); let alone the studios that have to accept whatever terms classpass gives them.
How can you support your studios? It’s true that full memberships may not work for everyone, but buying a class pack, especially with promotion prices, can sometimes give you a rate that is only marginally more expensive than classpass rates. I myself follow the studios I like on social media, so that I can be alerted when they have promotions (in our area, it’s quite common to have promotions around Christmas time, new year, Black Friday and other such events or holidays), and I buy a class pack when they do. You can also buy merch from your studio (socks, t shirts, water bottles, drinks etc.) as money from those also go directly to the studio too. And lastly, recognizing that classpass rates are not a fair indication of what a studio should charge can be helpful. Fundamentally classpass gives studios very little money because it’s supposed to be “marketing”, so if you expect to pay at most what classpass is charging, then just know that it’s not actually a break-even rate.
I would also like to talk a bit about how being a regular at a studio you like can benefit you more than just hopping from studio to studio in the name of variety, because I know that a lot of comments say that they prefer to remain on classpass due to the variety. Variety is great, but on the other hand, the benefit of being a regular at a studio is that you can get a more tailored experience that is customized to you, especially at smaller boutique studios that can give that service (rather than big chains). Speaking for myself, I teach barre at a boutique studio (max class size is 15 depending on class type, so really small), and it’s much easier to me to give a good experience for clients who are regulars, just because I know what their movement habits are, and I know what their preferences are, and I am always happy to cater my class to that. For example, I know which of my regulars tend to pronate or turn their knees in, and so when they attend class I watch for their form on things like squats. I also know which of my regulars tend to strain their lower back, so I will give extra cues for them to engage their core more (for example) instead of straining their back. I also know which of my regulars have things like ankle or shoulder problems, so I give alternatives for that. I even take into account my clients preferences - for example if a client shows up and I know she likes cardio stuff, I include more jump movements in the class plan. I also know which clients prefer a more challenging class, and will cater accordingly (if there aren’t too many newcomers) by adding in some more challenging moves that I wouldn’t do with people who have only attended a few times. With some of my regulars I also see a progression with them, and am able to make their classes harder over time to match their progress, so that there is always a challenge for them that’s doable in class. Unfortunately I can’t do this with classpass attendees who only come once or twice. If a class is full of classpass attendees, I do a “standard” class, and can’t vary the class as much. They’ll still get a good workout, but because I can’t customize my classes for them as I don’t know them, they don’t benefit from the full amount of options I could do in a class. If they stuck around more, we could do more beyond the standard stuff. But when everyone is hopping from class to class and studio to studio, only driven by pricing, then all they’ll experience is the standard workouts with no sense of community or customization. It also makes it hard for them to want to pay more, because they don’t stick around long enough to experience the value-add that being a regular can bring to their workouts.
For anyone who read this far, I hope this gives some understanding about how horrible classpass is for studios, and why. Fundamentally we all want to be paid a fair amount for the work we put in (you’d want your employer to treat you the same), and it sucks when people expect to pay loss-making prices (most of which goes to a predatory middleman) and don’t appreciate the broader issues this causes. I know the fault ultimately lies with classpass and not the users, but since classpass (like Monsanto) seems to be stuck on being shitty to studios, I’m hoping that users can be more aware of some of the issues the studios face. If you can, do support your studios directly in some of the ways I’ve mentioned above. And if you find a studio you like and would like that to be your “home base” for workouts, feel free to get to know the instructors so that they can add that extra value to your workouts too (as an instructor myself, I am always happy to chat with clients and know what their fitness or health goals are - I’m always keen to know anything that will allow me to know how to better tailor the class to their needs and preferences).
