It's also a way for a lot gyms in the west to make more money from their members. The first gym I trained at here in Perth had a grading system. They charged $60 to attend the grading, and then another $20 for your new shirt with your new grading on it
'So Snack Payback, will you be attending the upcoming grading?'
'Err, no I won't'
I don't train there anymore
All the places I've trained at in Perth have been fine. Even that place I talk about above, despite the grading nonsense it was a friendly gym. Once I started heading over to Thailand to train I soon realised I needed to find a new gym if I really wanted to improve. The place I'm at now is great - Thai owned and run. Very friendly and my technique has come on a lot. Also tried one other place before settling at my current one. Owner had spent a lot of time in Thailand and had had Thai trainers over. Again, very friendly and well run place.