As supported in the Annual Yoga Studio Benchmark Report, profitable studios command higher prices. No matter how long your studio has been in business, no matter how big your studio is, you have an expertise, community and unique value that is worth premium pricing. Yoga studio pricing can be challenging, but charging what you’re worth should be an easy decision. In order to create impact through your yoga passion, the business must be in a healthy and centered state.
Setting Your Yoga Studio Pricing
“Premium pricing” obviously looks a lot different around the world and the cost of yoga classes depends on your local market. To choose your new pricing structure, start by completing a market analysis. That is, contact other local studios and request their pricing. If there is not a local studio to contact, seek out studios from other regions with similar economics and demographics. Of course, you can also review the data in our industry-leading Yoga Studio Benchmark Report. From here, the question becomes whether to charge more or charge less than your market peers.
The key word when it comes to pricing is “value.” Pricing impacts your public perception and tells others what you think your studio is worth. Low pricing diminishes brand value and makes students feel like they’re just getting the best price, not the best experience. Furthermore, students aren’t going to pay premium pricing for a subpar experience. If you’re going to elevate your prices, you must also elevate your student experience.
Communicating the Price Change to Your Community
Proper communication can make or break a pricing change, and there isn’t one right answer. Of course, when implementing a pricing change, you can “grandfather in” your existing students so they keep their current prices. This is a great way to drive loyalty and retention.
Another thoughtful way to implement premium pricing is to announce the new pricing structure and then give all current students a discount on that new price. For example, explain to your community that you recently did an analysis of your yoga business and realized you weren’t charging enough to maintain the long-term health of the business. Continue by telling them the price, as an example, will be increasing from $79/ month to $99/ month. If they don’t cancel their membership, they will receive a “locked-in loyalty price” of $89/ month.
Justifying the Price Change Moving Forward
As we briefly mentioned above, you can’t raise your prices without raising your experience. The success of your pricing change moving forward hinges on your ability to exhibit undeniable value to both prospects and current yoga students.
When a prospect walks into your studio, this is your chance to set the tone. You know what you’re worth, you charge what you’re worth and you leave prospective students with no doubts in their mind. The best way to support premium pricing in the lead conversion process is through promotional offers. That is, a free class, free trial or even paid trial. This gives the prospect a way to experience your studio, and it gives you a chance to truly illustrate your studio’s value.
Prospects and yoga students enter your studio and, whether intentional or not, judge your studio’s appearance. You can’t have premium pricing without a clean and organized studio. If someone is paying premium pricing for their yoga experience, a professional and centered setting is a must-have.
Learn more about how “Centered” studios operate their businesses.
Download the free Annual Yoga Studio Benchmark Report.