Are You Pricing Your Yoga Classes Correctly?
So, you did it. You finally decided to turn your dream of opening a yoga studio into a reality. You’ve written a business plan, selected the perfect location, designed the space exactly to your liking, created a class schedule, and maybe even started the process of hiring a team of phenomenal instructors. There’s no denying there is a lot involved when opening your own studio, including creating a pricing menu that not only drives loyalty and growth but also initiates a healthy stream of revenue.
The truth is, that most business owners may not have enough experience with economics to create the best pricing structure for their yoga classes. If you find yourself struggling with this part of the journey, here are some factors to consider to help get you started on pricing your yoga classes.
The purpose of creating a membership package is to provide the most valuable option for your most loyal customers. Whether they come to your studio on a daily basis, every other day or cram in multiple classes on the weekend–offering an unlimited monthly membership can help your favourite yogis practice on the mat as much as they’d like at an affordable rate. When in doubt, stick to the “eight-session” rule—price your memberships to the equivalent of eight single-session classes. Let’s say a single class is priced at $17 at your studio—pricing your membership at around $136 per month helps drive steady revenue but also provides tremendous value to your customer. You may also want to consider rolling in discounts on retail, and allow for early sign-ups and other perks to help sweeten your membership deal.
As your customer base continues to grow, you’ll also have students that may come to class a couple of times a week or maybe as little as a few times per month. They may not be willing to commit to a membership just yet, but they also frequent your studio enough that paying a drop-in rate each time they visit may not fit their budget. This is where multi-class passes come into play. Create different class packs for each group and price accordingly. Sticking with the same pricing as above, if your drop-in rate is $17 per class, you may want to offer a 5-class pass for $70 to help bring in revenue and encourage the customer to come to more classes at an affordable price.
Single-Sessions and Drop-Ins
Your base rate for single sessions and drop-ins is unique for everyone based on their expenses and anticipated revenue. The best piece of advice we can give you when pricing these types of classes is to value them at what you think they are worth. Another factor to consider is to price these classes competitively. You want your drop-ins to be affordable enough that a new student doesn’t think twice about trying out your studio for the first time, but also pricey enough that a regular student can see the value in purchasing a multi-class pack or a membership.