--- title: "Meaning & Key Takeaway of: You know what—gyms make the largest chunk…" description: "\"“You know what—gyms make the largest chunk of their profit from clients who pay their monthly dues on auto-pay but never bother to show up and use the ..." image: "https://sms4smile.com/quotes/i/412/ali-sheikh-46770_business_you-know-what-gyms-make-the-largest-chun_3056843.jpg" --- # You know what—gyms make the largest chunk of their profit… ![“You know what—gyms make the largest chunk of their profit from clients who pay their monthly dues on auto-pay but never bother to show up and use the gym. The DVD-rental companies make a good chunk of their profits from late fees; the credit-card companies make a fortune on sundry fines and…” quote by Ali Sheikh](https://sms4smile.com/quotes/i/412/ali-sheikh-46770_business_you-know-what-gyms-make-the-largest-chun_3056843.jpg) [Download](https://sms4smile.com/quotes/i/412/ali-sheikh-46770_business_you-know-what-gyms-make-the-largest-chun_3056843.jpg) [Open image](https://sms4smile.com/quotes/i/412/ali-sheikh-46770_business_you-know-what-gyms-make-the-largest-chun_3056843.jpg) > ““You know what—gyms make the largest chunk of their profit from clients who pay their monthly dues on auto-pay but never bother to show up and use the gym. The DVD-rental companies make a good chunk of their profits from late fees; the credit-card companies make a fortune on sundry fines and penalties; the airlines’ margins are highest on ticket changes and cancellations… So, the key to running a successful business in America is to sign up a customer and pray he’ll somehow screw up…”” [Ali Sheikh](https://sms4smile.com/quotes/author/ali-sheikh/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Profit often comes from fees and penalties rather than core service usage; businesses rely on customer inertia. **In simple terms:** Companies earn money from customers not using services. Key Takeaway Design value‑based pricing and genuine engagement. Themes business model fees customer behavior profit inertia Mood critical analytical ethical Type economic business consumer When to use this quote - subscription services - customer retention strategies - pricing audits Key Concepts penalty fees auto‑pay revenue service underutilization Questions to Reflect On - How can you add real value to customers? - What ethical pricing models could replace penalty fees? A Different Perspective Focusing on fees can erode trust and long‑term loyalty. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Economy](https://sms4smile.com/quotes/about/economy/) [Exercise](https://sms4smile.com/quotes/about/exercise/) [Gyms Make](https://sms4smile.com/quotes/about/gyms-make-3323618/) [Jobs](https://sms4smile.com/quotes/about/jobs/) [Know Gyms](https://sms4smile.com/quotes/about/know-gyms-5109689/) [Profit](https://sms4smile.com/quotes/about/profit/) [Profit Clients](https://sms4smile.com/quotes/about/profit-clients-5109690/) [Profits](https://sms4smile.com/quotes/about/profits/) [Success](https://sms4smile.com/quotes/about/success/) [Successful business](https://sms4smile.com/quotes/about/successful-business/) ## Related quotes > [I'm opening gyms around the world to encourage people to get in shape and feel good about themselves; bringing art through dance to gyms…](https://sms4smile.com/quotes/madonna-ciccone/i-m-opening-gyms-around-the-world-to-encourage-people-to-get-in-shape/) [Madonna Ciccone](https://sms4smile.com/quotes/author/madonna-ciccone/) > [Profits are one of the most important goals of any successful business, and investors are one of the most important constituencies of public businesses.](https://sms4smile.com/quotes/john-mackey/profits-are-one-of-the-most-important-goals-of-any-successful/) [John Mackey](https://sms4smile.com/quotes/author/john-mackey/) > [“Profit is a byproduct of purpose pursued with passion.”](https://sms4smile.com/quotes/marion-bekoe/profit-is-a-byproduct-of-purpose-pursued-with-passion/) [Marion Bekoe](https://sms4smile.com/quotes/author/marion-bekoe/) > [People share a universal behavioural trait: if there are profits to be made, the effort to get that money will attract investment. This is…](https://sms4smile.com/quotes/james-m-buchanan/people-share-a-universal-behavioural-trait-if-there-are-profits-to-be/) [James M. Buchanan](https://sms4smile.com/quotes/author/james-m-buchanan/) > [Shouldn't you put the same amount of effort into your giving as you might for your for-profit investments? After all, philanthropy is an investment,…](https://sms4smile.com/quotes/laura-arrillaga-andreessen/shouldn-t-you-put-the-same-amount-of-effort-into-your-giving-as-you/) [Laura Arrillaga-Andreessen](https://sms4smile.com/quotes/author/laura-arrillaga-andreessen/) > [ The \[liberals\] consider profits as objectionable. The very existence of profits is in their eyes a proof that wage rates could be raised without… ](https://sms4smile.com/quotes/ludwig-von-mises/the-liberals-consider-profits-as-objectionable-the-very-existence-of/) [Ludwig von Mises](https://sms4smile.com/quotes/author/ludwig-von-mises/) > [The profits follow, and if we have remembered that, they have never failed to appear.](https://sms4smile.com/quotes/george-w-merck/the-profits-follow-and-if-we-have-remembered-that-they-have-never/) [George W. 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The…](https://sms4smile.com/quotes/michael-covel/trading-is-a-waiting-game-you-sit-you-wait-and-you-make-a-lot-of/) [Michael Covel](https://sms4smile.com/quotes/author/michael-covel/) > [Profits are what you make when not working.](https://sms4smile.com/quotes/michael-pare/profits-are-what-you-make-when-not-working/) [Michael Pare](https://sms4smile.com/quotes/author/michael-pare/) > [Too many people are apt to redeem their profits too quickly. In a huge bull market they wind up with piddling profits, only to…](https://sms4smile.com/quotes/martin-zweig/too-many-people-are-apt-to-redeem-their-profits-too-quickly-in-a-huge/) [Martin Zweig](https://sms4smile.com/quotes/author/martin-zweig/) > [Chasing profits and building a long-term profit model are two different things.](https://sms4smile.com/quotes/lewis-howes/chasing-profits-and-building-a-long-term-profit-model-are-two/) [Lewis Howes](https://sms4smile.com/quotes/author/lewis-howes/) > [When people make donations to non profits, they want to know that their money goes to good use.](https://sms4smile.com/quotes/sam-simon/when-people-make-donations-to-non-profits-they-want-to-know-that/) [Sam Simon](https://sms4smile.com/quotes/author/sam-simon/) ## More by Ali Sheikh > [“You know what happens at any magic show? 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It is buy one, get one free.”](https://sms4smile.com/quotes/ali-sheikh/in-america-the-glass-is-neither-full-nor-empty-it-is-buy-one-get-one/) [Ali Sheikh](https://sms4smile.com/quotes/author/ali-sheikh/) > [“Nothing is illegal so long as you correct it before the SEC catches it.”](https://sms4smile.com/quotes/ali-sheikh/nothing-is-illegal-so-long-as-you-correct-it-before-the-sec-catches-it/) [Ali Sheikh](https://sms4smile.com/quotes/author/ali-sheikh/) > [“There comes a time in everyone’s life—and I do mean in everyone’s life—when you ask yourself what it is that you’ve been doing with…](https://sms4smile.com/quotes/ali-sheikh/there-comes-a-time-in-everyone-s-life-and-i-do-mean-in-everyone-s/) [Ali Sheikh](https://sms4smile.com/quotes/author/ali-sheikh/) > [“That’s the problem with any ‘simple truth’—it always takes a gaggle of complete idiots or a team of all-knowing geniuses to miss it.”](https://sms4smile.com/quotes/ali-sheikh/that-s-the-problem-with-any-simple-truth-it-always-takes-a-gaggle-of/) [Ali Sheikh](https://sms4smile.com/quotes/author/ali-sheikh/) > [“Never lose time in sending the scapegoat to the slaughterhouse.”](https://sms4smile.com/quotes/ali-sheikh/never-lose-time-in-sending-the-scapegoat-to-the-slaughterhouse/) [Ali Sheikh](https://sms4smile.com/quotes/author/ali-sheikh/) > [“There are two ways to ruin any chances of leading a happy life. 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