In reply to duchessofmalfi:
I think the cost or no cost & justified to charge arguments have been done, so I'll add a new spanner:
So, back a few years ago, if you had paying members of a sports facility, their subs (i.e your £8 per nights climb) were able to be exempted from VAT, meaning walls charging you £2 a year meant that they could keep the whole £8 making a significant difference to the bottom line.
My understanding is that some walls cottoned on to that, initiating the annual charge.
That VAT loophole no longer exists, or is structured in such a way that most walls can't use it.
In the event of a wall who used that loophole, there will be a line on their accounts, saying annual membership fees, £xx,xxx. Any board of directors will likely have thought, well, we've just lost the VAT portion, so I think I'll keep that coming in to offset not having to put my prices up so much.
Other walls who weren't able to take advantage of that, still had it as a way of making a regular predictable annual income and providing a metric - people who have paid for an annual membership gives a more reliable regular climbers figure than the 50,000 people on the books of most larger walls these days, you can now of course provide something similar with the right reporting from a basic wall database. There's also some who use it as a way to charge more to one off visitors, simply because it's a different market and the aims for the wall are different when dealing with visitors or locals.
Interestingly when opening my wall I sent our business plan (version 9 if I remember rightly) around a few folk, and was given a strong recommendation to introduce an annual registration charge by a number of them.
We decided not to, as wisdom outside the world of climbing walls suggests reducing friction in the sign up cycle increases sign ups which is obviously good news, and with our wall being in a location visited by lots of climbers once or twice we didn't want to penalise visitors.
There are obviously other reasons for it - whether the charge is implemented or not is obviously the decision of the wall, the only one I find strange is the introduction of an annual charge in an existing wall that didn't previously have one, my assumptions for this are lots of walls have been moving to IT systems with a higher overhead charge, which is much more tangible in the accounts than countless hours of staff filling out forms while also making lattes and managing the desks, they may be trying to offset that with a charge to cover the cost of maintaining a slick entry system, alternatively they could be looking at a way to delay price increases in the fear that this will reduce regularity or retention of members.
I think, and have done for a while, that ideas like it and other none customer focused changes, charges and policies in walls are down to wall managers not necessarily questioning what has gone before, or having goals/focus/mission-statements that don't put the customer first as an organisation. It will be very interesting to see what happens over the coming years as we start to reach 'perceived wall saturation' with the current business model adopted by many walls.