A lot of us don’t make enough money in our studio or see the abundant results of our hard work we deserve, and it’s mainly because we do not value our own work, time and effort in the services we provide, we lack confidence.
This paralysing mindset will keep you from potential students who are willing to pay for your classes.
There are two basic reasons for this:
- You feel people are not able to afford or pay for it
- You give away your time
It’s important to overcome this mindset, to establish fees and pricing that recognize your unique gifts and priceless service you have to offer.
You can always help those in need, if you see a student struggling to pay, you can offer him/her a special discount or a few classes for free, but do not set your whole pricing structure this way, otherwise your Home Yoga Studio will never take off.
How to price your classes
So you have established the different classes you are going to teach at your studio, don’t forget the super valuable private classes!
There are four basic methods for pricing:
Replacement cost. This is basically how much does it cost you to run your class (rent, utilities, wages, equipment, etc.) How many people you are planning to have in your class (be conservative)? And how much do you want to earn per class (don’t be conservative!)?
Market comparison. Suppose you were to close your studio and your student would have to find other yoga classes, how much would they pay for that? Have a look at your competition and see how much they are charging per hour, per class, per private…
Net present value. Imagine you are not opening your studio but still making the space suitable for classes, how much money would you make if you were to rent out your space to someone else, by the hour, by the day, by the week, by the month?
Value comparison. How much are people in your area (your target market) prepared to pay? This is a great way to set your prices, because you will get the real market value for your classes.
Here are a few strategies you might want to consider:
Premium pricing. You will make your prices higher than your competition. This is an effective strategy if you want to position yourself as an exclusive boutique studio, remember people perceive expensive as better.
Penetration pricing. This is your price when you open. You could price your classes lower than your competition, to raise awareness and get people to try your classes. It’s a bit risky since you don’t want to remain with those prices and bumping them up is difficult, plus it means in your first year where you struggle the most, your price will be at it’s lowest.
Psychological pricing. Many companies use this method; instead of charging $100 they charge $99 and it’s perceived as less, even though it’s the same. It’s a minor distinction and it can make a big difference.
The prices at Yoga for Life
I am showing you what you can do; as for me I have 4 different prices at the studio:
- Introductory offer: $35 for unlimited 30 days of yoga, only for new students, for them to try different teachers, different classes, dates and times.
- Casual class: $17
- 10 class pass: 1$135
- Private classes: $75
These prices are in Australian dollars, and my target market is women between 25 and 50 years old who live in middle-class suburbs, so they definitely can pay these prices.
Here’s an example of my cards. In the 10-class pass, I write down the date on top of the square and I punch it every time the student comes to a class.
I have a cardholder at the studio where I keep their cards in alphabetical order by their first names.
The 10 class passes have an expiry of three months. This is to encourage our students to come once a week at least, so they can really see the benefits of yoga.
There are really only two: cash or card. However you have a few options:
- Cash when people come to class: I allow them to do the class and we sort out payment at the end, that way I can ask them how they felt and get to know them a bit, even encourage them to buy a 10 class pass.
- Card: I receive credit card payments through PayPal. I also do this at the end of the class.
- Online payments: My students can pay online from their homes or smart phones, also through PayPal.
VERY IMPORTANT: Your students DO NOT need to have a PayPal account to pay your classes or 10 class passes with their credit cards – so it’s really easy for them.
For me this is the easiest way, I have a business PayPal account, which is pretty simple to get.
In my PayPal account I can have monthly reports, check my balance and withdraw money to my bank account, which is pretty much all I need for my regular payments.
Also, though my account I can create ‘buy now’ buttons to attach to my website, so that I can offer my students online payments.
I have installed two PayPal apps on my smart phone:
- PayPal: this is the regular app, which allows me to do all that on the go.
- PayPal Here: this is a great app to have! You will be able to charge your students’ credit cards onsite, all you need is the app and there you are, however, I also bought the terminal, which is a little piece of equipment where my students can insert their card and type in the PIN, as simple as any shop, there is a commission, but you have no monthly fees. And now it is only $49 and your students will be able to tap and go!
You could also get all this from your bank, however, consider this:
- You will need to be established as a company (or properly as a ‘Sole Trader’).
- You will need to have a business account, which means it will not generate interest and you will pay actual monthly fees.
- You will need to get a terminal from your bank to charge credit cards, which also comes at a cost to you plus a commission per transaction.
And lastly, remember to have a Refund and Cancellation Policy in place.
Most of all, you want to make this easy for your students so that they don’t overthink their decision to join and remain as students at your studio.