Pricing sends a clear message to your potential students. It either says your yoga studio is worth their time and attention or it doesn’t.
On some level, all of us are suspicious of something that’s “too good of a deal.” We wonder if something that much cheaper can possibly be as good.
Imagine you see two pairs of black heels sitting on a shelf – one priced $180 and one $40. You’re naturally going to wonder why. If you’re honest, on some level you will think the expensive pair is better, based only on the price difference.
Studio pricing is the same way. If you’re like most studio owners, you picked some numbers based on competitors in your market or what sounded right. You probably didn’t focus too much on strategy or planning. That’s how I started out too. DON’T STAY THERE!
Approach your pricing futuristically. What do you want your pricing to create for you? What story do you want to tell about your business?
Tweaking your pricing can make a HUGE difference in your yoga studio’s success in the long-term. Too often we keep doing something because it’s the way it’s always been done, or the transition seems overwhelming. We might even be worried about our existing students and how they will feel about a change in pricing.
Truth → Pricing is the supporting structure of your sales process!
Strategic pricing funnels your students (and your business) toward success. If your pricing isn’t in alignment, your intro pipeline won’t be as effective and your sales process will be much harder.
What do your students need?
START WITH YOUR STUDENTS. What’s best for them? When someone asks you what they need to do to be successful at your studio, what do you tell them? How do you guide them?
Without a doubt – no matter what their goal – the answer is always frequency. The rest will fall into place, as long as they show up.
If frequency is what they need, why are you selling them something different?
Barely using their 10-pack in the three months before it expires – or casually dropping in – is the opposite of what someone needs when they come to you. To achieve goals like stress reduction, increased flexibility or a more fit body, your students need a regular practice of 2-3x a week.
Sell them consistency… NOT YOUR DROP IN!
Without consistency they won’t get the results they need or experience the full value of your studio. You have a moral obligation to sell them something better.
Use the pricing of your drop in to talk about your studio’s value, not to fill classes.
Your drop in sets the bar for the value of a class at your studio. Without having to do any math or think too hard, new students know exactly how much value your class is offering. It should be high.
If you’re selling a drop in that’s not much higher than a big box gym’s yoga class, you’re saying something. You’re telling new students that your studio isn’t really any better at yoga than that big gym.
Truth → Make your drop in price as high as possible. You don’t want to sell it!
Change the narrative. No markets in the United States or Canada should have drop in rates cheaper than $20. In many areas drop ins as high as $30 are standard now. Also… don’t put a link to purchase a drop in on your website. If they want to pay for a drop in, make them actually drop in!
Make your promotional conversation about your intro offer!
Whenever someone new comes in, the only thing you should be talking about is the intro offer. Keep it simple and don’t give them any other options unless they ask for them.
Try something like this:
- “What most people do is…”
- “Let’s set you up with our intro so you get…”
- “When you do the intro today you’ll get…”
Most intro offers last two weeks to a month. This gives newbies a chance to get to know your studio and experience the value you offer. It’s your chance to make them members.
Truth → Your intro offer is the BEST option for new students! Sell it that way.
It needs to be a no-brainer. The best ratio for your intro offer price is 2x your drop in or ½ the price of your monthly membership. That way, if they come in looking for a drop-in class it’s an easy sell, and when they’re done it’s easy to get them on your autopay.
You need to frequently and clearly communicate your value. Give them enough time to try out your classes and get the flavor of your studio but leave them wanting more. They’re not sold on your studio yet. They’re trying it out.
This is your chance to make them fall in love with your studio and turn them into members.
Use strategic pricing to get your students what they need – FREQUENCY. Get new students on the intro offer and existing students on the autopay. They’ll be encouraged to show up often and your cash-flow will be more stable. Everyone wins!
When your pricing clearly communicates what you want them to do, and where your value lies, they’ll naturally make the right decisions.