Crash Course in Pricing your Yoga Classes
When you’re starting up your yoga business, your overhead will be different than if you were a guest yoga teacher at a studio. You have to worry about things like rent and electricity. You also want to make a profit (although that’s quite unlikely for the first 2 years you’re in business).
But you shouldn’t price yourself out of the market. This is a term we use in business to mean a product or service is so vastly over-priced nobody in the market will buy it, no matter how good it is. You don’t want to price your yoga classes so high that nobody in your city can afford them. This will only drive students to your competitors.
This is where market research comes in. Check out the prices and clientele for yoga studios within a 5-10 mile radius of where you are going to open your yoga studio. You can do a lot of this online, and in the event a studio doesn’t have a website, you can simply call and ask.
If you find most studios in your area are offering classes for $20-$30, you will be right on the money (so to speak) if you price your drop-in classes at $18-$25. This will ensure you're priced competitively.
Some packages to consider offering:
- Block of Classes
- Special Events
- Private Lessons
Class packages and memberships are similar to that of gym memberships. Structured right they bring in more revenue, even if the packages are priced to offer the student a discount. Students are more likely to come to classes if they already paid for them, making your studio look busy and popular. Furthermore, most students are likely to renew their membership at least once.
Types of packages include:
- Blocks of Classes
- Themed Courses
Blocks of Classes
Consider offering a block of 10 classes that can be purchased for slightly less than what you charge for drop-ins. If you charge $20 per drop-in, consider offering a block of 10 classes for $180. This will save the customer $20 (the cost of one class), but give you a guaranteed $180 in sales.
Putting a time frame on the classes is a good idea. The student has 2 months to attend their pre-paid classes, for example. The more classes the purchase, extend the use by date so the student doesn’t feel pressured.
Popular blocks of classes and durations include:
- 7 classes – 1 month
- 10 classes – 1 month
- 14 classes – 2 months
- 20 classes – 3 months
- 30 classes – 6 months
If you don’t have yoga studio software or accounting software, you can track this using a simple spreadsheet, and giving the student a punch card with a use by date (similar to a coffee loyalty card) so the student always knows how many classes they have remaining.
Yoga studio memberships are a very popular way to go because they make good business sense. A membership is priced at a considerable discount than what the student would pay if they were purchasing the classes as drop-ins, and also comes with perks, making your student feel special. Some studios report as many as 60% of their regular students opt for a membership package.
You can structure your membership package however you see fit, adjusting the price and perks to fit your clientele.
Most studio memberships work something like this:
- A monthly fee ($200)
- Unlimited yoga classes
- 20% discount on workshops, special events, and teacher training
- 15% discount on yoga supplies
- 2 free passes per month to bring a friend
You should plan on a member attending classes 3 days a week. Some will attend 5 days a week while others only 2 days a week. 3 is just about average.
When you structure your membership program, take the cost of the membership, and divide it by 12 classes per month.
If you charge $200 for the membership and a student attends 12 classes a month, the average cost will be $16.6 per class The per class cost should be low enough that a student feels they are getting a break by purchasing a membership, but high enough you don’t feel as though you’re losing much money. It’s a careful balance.
If you’re trying to drum up new membership or interest in a new style of yoga, you could offer special rates for Themed Courses. A Yoga Course is made up of smaller yoga classes that build upon one another to give the student a more robust understanding of the topic.
Popular themed courses are:
- Beginner’s Yoga
- Introduction to Ashtanga
- Beginner’s Inversions
- Vinyasa Flow for Beginners
Themed courses can be used to attract new students, or let students learn something more in depth than they would in regular classes. Themed courses are usually priced so the average per class is slightly lower than that of the drop in rate.
Photo from Dahn Yoga.
- Posted in: Yoga Business
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