One of the first things clients look at when considering a new studio is the cost.
That’s why it’s so important to create a pricing strategy that’ll bring new clients in and encourage them to stick around. If your pricing menu is too complicated or doesn’t offer the options your clients want, you’ll lose business. Now, with reduced class capacity indoors and virtual offerings, it’s more important than ever to make sure your pricing strategy is optimized so you can remain competitive and profitable.
Here’s some guidance on how to do just that:
Don’t over complicate it
When it comes to pricing, simple is best. The more pricing options you have, the more overwhelming it can be for your clients. A best practice is to have between three and seven pricing options for in-studio classes. As you add new types of classes including live-streaming, on-demand, and outdoor, keep that number closer to three options per class type to maintain simplicity.
Use data to inform your pricing decisions
Data is your best friend. Pull reports using FitGrid’s Studio Dashboard to calculate your client’s average number of classes per month. Then, structure your memberships to fit what your clients are doing and eliminate packages that don’t fit their behavior. For example, if the average client takes three classes per month, it doesn’t make sense to offer a membership for 15 classes per month.
Target the right audience
We typically see four primary categories of pricing offered at boutique fitness studios. Each category targets a different audience and allows you to serve the needs of both new and established clients. Take a look at your recent data and evaluate if you need to tweak these offers to better serve your new product mix.
- Intro offers allow new clients to sample your services at a discounted rate, typically 50 percent off your standard rate. When these new clients come through your door, rollout the red carpet and encourage them to keep coming back.
- Autopay memberships are best for clients who are loyal to your studio and want to be a staple part of your community. With this membership structure, your clients will pay a flat fee for unlimited services. This is your best option for retaining clients and predictable revenue.
- Class packages give clients an option to take classes without the commitment. This should be the most expensive class pricing option.
- Single classes are the best option for clients who aren’t ready to make a commitment to your studio yet. If they’re new, encourage them to check out your intro offer!
Structure your pricing to incentivize the behavior you want
If all of your clients are purchasing drop-in visits, it’s probably because your drop-in rate is the most attractive pricing option. Decide which pricing option you want your clients to purchase and then develop your pricing and sales strategy around it. This also applies to pricing for your new class offerings. If your in-studio capacity is limited, consider making your virtual classes slightly cheaper to incentivize clients to continue working out with you.
Don’t rush, plan it out
Avoid making any rash decisions or changes to your pricing. Clients look for stability in their yoga or fitness studio, so you don’t want to change pricing too frequently. Delve into your numbers, check out FitGrid’s profit calculator, hire a consultant for help, and do your research (and math) to develop a solid plan that you can stick with.
Having the right pricing strategy is the key to a profitable business, so do it right. For access to data that’ll help you make the right decisions, start your free 30-day trial of FitGrid today.
ABOUT THE AUTHOR
Mindbody-Certified Consultant Teresa Zanardelli is the founder and owner of teresa z. consulting. She educates and empowers business owners, helping them develop the tools needed for long-term success. Teresa supports her clients through comprehensive KPI analysis, data-driven decision making, and Mindbody system support. Teresa specializes in helping health & wellness business and studio owners with pricing structure, sales process, retention, staff management, and customer experience strategies—all resulting in business success and growth. She works with clients one-on-one and facilitates operational training in group settings for owners and their teams. Teresa has worked in the yoga and fitness industry since 2009. As a yoga instructor and studio owner in the Columbus, Ohio area, she develops and administers yoga teacher training programs.
FitGrid is a community management system designed for boutique fitness studios to engage clients on a personal level