As a yoga teacher or yoga studio owner, how much should you charge for yoga classes?
Broadly speaking, there are 2 yoga class pricing options:
- Per yoga class (low, average, and high)
- Creative pricing options including packages and memberships.
Cost per yoga class:
Until you choose your yoga studio’s location and know your studio square footage and rent amount (or mortgage payment amount), you won’t be able to precisely determine your yoga class pricing model. Essentially, you must have a handle on your fixed and variable expenses before setting yoga class prices. Moreover, you must also, in time, figure out how many yoga students you will attract.
That said, the pricing model you may want may determine your studio space and customer service level. It’s the class egg and chicken scenario.
That’s why your yoga prices are part of your unique selling position. Generally, most yoga studios price their classes fairly similarly. There are some low-cost providers, but that’s the exception. Of course the low-cost model is easy to implement, but you have to make sure that you’ll generate enough revenue to survive or thrive.
Unless you’re in an upscale area or are the only yoga studio in town, you probably don’t want to price your classes too high. The typical range (and this depends on your city/town) is $9 to $23 per class. $16 to $23 per class is the price in more expensive rent areas such as urban settings.
Yoga classes aren’t super price elastic. In other words, you won’t greatly influence demand with price. Of course if you price classes at $100 per class per person, you’ll probably have no students. Likewise, if you offer and advertise free classes, yoga students will pound down your door. If your yoga prices are within the $9 to $20 range, you probably won’t see too much difference in demand.
It’s important that you deliver what your students want; and that is a superb yoga class experience. If you deliver this, you can charge more. If your classes are the same, your customer service is terrible, and you teach like you’re bored in a robotic manner, you’ll see a drop off in the number of students.
Your yoga studio’s success depends on a lot more than just price, but if you implement creative pricing packages, you can create exciting options for your valued clients. Also, your pricing will change as time goes on. If your classes are always full, think carefully about increasing your price. You don’t want to anger your students with too much and too frequent price changes. When you increase your yoga class prices, explain it and give warning.
If your classes are empty, consider lowering your prices or run promotions. However, be cautious when lowering prices because it’s not easy to increase them again. Well it’s easy, but your students may not appreciate it.
Consider target pricing your yoga classes. Target pricing is pricing based on demand. Classes that get fewer students may increase attendance with a lower price.
Pricing Packages and Memberships
I’m particularly keen about yoga class packages and memberships.
I suggest you offer a variety of yoga class pricing packages. Don’t just offer drop-in rates. Consider unlimited yoga packages (i.e. memberships), multiple class packages, batching packages, sharing packages, private packages, on-site packages, promotions, referral bonuses, first class/week free, holiday specials, and any other pricing plans you can think of. Also, ask your yoga students what type of pricing package they would like. It’s important you seek and receive client feedback.
Ensure that the more expensive your package, the lower per/class the cost is. For example, if your drop in rate is $18 per class. Make it so a 10 class package results in a per class cost less than $18.
Be sure to post your prices clearly in your studio and on your Web site. Create a menu. After each package, if it’s possible to calculate, give the per class cost. This is a great way to sell larger packages. As a business person, you must always strive to receive a dollar today rather than tomorrow, because a dollar today is worth more than a dollar tomorrow.
You can steady and increase revenues with memberships set up with auto-pay. Memberships are attractive because students can then practice yoga at your studio as much as they wish. It’s good for you because you’re guaranteed a certain amount of money per month from a set number of students who are your members.
Don’t forget to offer gift cards. Make it easy for your students (or their friends and family) to buy more classes. This not only generates sales, but it’s a great way to attract new students.
If you don’t have the technology to offer auto-pay, self-booking, and/or gift cards, check out MindBodyOnline Yoga Studio Software. If you decide to try MindBodyOnline, mention Yoga Baron to get your first month free.