LA_Fitness_price_system - Surname 1 Students Name...

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Surname 1 Student’s Name Professor’s Name Course Date LA fitness pricing system Introduction The most paramount aspect of human beings is having a healthy body to be in a position to do many other activities in life, both for entertainment and commercial purposes. As such, it is common for people to have organized centers for training on various skills such as self-defense as well as for entertainment and keeping physical body fattiness. LA Fitness Club was established in the USA on these bases. Put differently, LA Fitness is a health and fitness club, with chain operations in USA and Canada, with quite many locations in the two regions. LA Fitness was established in 1984, offering a widespread of the state of Art facilities at very competitive prices, which has seen it, grow in popularity, with increasing membership year after year. The current essay explores the LA fitness pricing system as well as the membership process, and how price discrimination is depicted in the two, mainly the third-degree price discrimination. LA Fitness price and Membership fee At LA fitness, prices are charged based on several variables; this is to mean that, there is no agreed price for various services identifiable with the firm. Prices are charged based on variables such as the location of the facility, the age as well as the gender factor; however, the minimum billed amount for all the services in all the categories is $99. Besides, upon
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Surname 2 cancellation of the membership, across all the classes and types of membership, there is no fee charged, there are free entry and exit upon the will of the individual. The membership at LA fitness is comprised of several options. Members subscribe to the services of their interest for different options available at LA Fitness club in all the locations across USA and Canada. In this regard, one may subscribe on a monthly basis, annual basis as well as on limited access options where ones pay visits at predetermined timings. Aspects of price discrimination in LA pricing Several management practices in the LA fitness are a clear indication of the widespread price discrimination in the market as well as the third-degree discrimination. Third-degree discrimination is the process by which, prices for the same commodities or services are charged differently on the basis of variables such as the age, location, and gender[Liu11]. Third-degree price discrimination is implemented for helping the firm meet some profit margins, since, different market segments are supplied the same products at the same marginal cost for various marginal revenues. The welfare effects of third-degree price discrimination consist of several outcomes. To start with, the firm may have no change in the welfare or on the other hand it may be made better off by the third party price discrimination as compared to the event when it is offering a common price for all the markets segments. The adverse effects of the third party price discrimination, is
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