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Economy

Why gyms charge an upfront initiation fee

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Charging you fifty bucks just to 'set up your account in the system' is a brilliant two-part tariff. Gyms know you will only tolerate a thirty-dollar monthly fee, so they arbitrarily slap a massive upfront toll on the door to quietly siphon off the maximum amount of consumer surplus before you inevitably cancel in March.

Why gyms charge an upfront initiation fee
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