What should my pricing strategy be for reopening?
We’re in a new situation and it can feel overwhelming. Your studio is different than ever before, the economy is different than ever before and so is your community. You’ve built a new, thriving virtual studio over recent months and now you’re reopening your physical location as well.
Good news → There’s always opportunity in the chaos.
You probably didn’t set out to have a robust virtual studio… but it’s a HUGE asset for your business. Properly positioned, your virtual studio can help you sell more memberships and help you fill the cash flow gaps during your reopening. You’re offering more value now and members are expecting to pay more for that added value.
Truth → Don’t be afraid to raise your prices.
Your studio capacity is lower than before and your memberships may have to go up to keep supporting the studio space. Raising prices can be stressful, but now is the perfect time to do it. Don’t widely advertise that an increase is coming and draw attention to it. Simply let them know, this is the price now that we’re reopening.
Your pricing must reflect the time and the effort you’re putting in. Adding and maintaining a virtual studio brings a lot of value to your membership. Running in-studio classes under new restrictions and guidelines is added effort, and really the classes you’re offering are higher value because people are eager to get out of the house.
Be strategic during your reopening
Your pricing may need to change during the next 6-8 weeks if it’s not working for your studio. That’s okay, be flexible with your plan. There’s a lot going on right now in the yoga industry and in your community in general, change is expected.
Truth → Long term you’ll probably want a virtual studio only membership, but now isn’t the time.
You don’t want a huge chunk of your membership jumping to this low-priced option during the first few phases of reopening. Save it for when your studio is back to normal, or nearly there. Be mindful that another phase of closings is possible, especially in the first few months after reopening.
It’s time to update your products, pricing and sales funnels.
The goal is for you and your team to be clear on what you’re selling, why it’s valuable, and how to answer members’ questions. With a clear underlying pricing strategy, your sales funnel will flow smoothly, and clients will be happy to support your studio. Remember, it’s not really about the price, it’s about the value you offer.
Truth → Your pricing tells potential clients what you want them to do.
Your pricing communicates the value of your product, AND it provides valuable direction to your clients. A regular practice is best for your clients. Are you promoting that? Is your pricing funnel directing clients to the autopay membership? If it’s not, now is the perfect time to change it!
Create a pricing strategy that appeals to each client type
Each type of client is looking for something a little different. Keep their needs in mind as you’re merging your in-person and virtual studios. You need an offer for each type you have, but you don’t need much beyond that.
Most studios have some combination of these three client types:
- Someone who is going to come into the studio all the time.
- Someone who lives farther away, but still comes in pretty regularly.
- Someone who dabbles in yoga or is only in town seasonally.
Offer an all-inclusive autopay membership for unlimited in-studio and virtual classes, a limited autopay membership and a recurring class pass. You’ve covered all your bases.
A limited autopay membership works great for people who are further out of town. They can come in for a set number of in-studio classes per month and supplement with virtual. The recurring class pack should be a low number of classes, say 3 or 4 with a two-month expiration that automatically pays ahead.
Truth → Decision fatigue is rampant. Keep it simple.
You’ll also need a VERY HIGHLY PRICED drop in once you’re fully open – at least $25. A drop in’s purpose is to show the value of your studio, you’re not trying to sell it. Consider making it a day pass for 24 hours to show you don’t sell individual classes. If clients are insistent on having a 10-pack, make it expire yearly, don’t advertise it and make it more expensive than the recurring class pack.
An example pricing structure would look like this:
- Day pass: $30 in-studio only (not available during reopening)
- 10-pack: $200 ($20/class), not listed on main sales page or advertised
- Recurring 4-pack: $75 ($18.75/class), includes virtual, recurs every two months or when used
- Autopay Membership: $120/month ($15 at twice a week), unlimited everything with extra perks, no minimum commitment and self-cancelation
- First month membership discount: $40, rolls directly into autopay membership
- Autopay Virtual Membership: $30/month (not available during reopening)
Keep it simple for your members. They don’t want an exhaustive list of every possible option, that’s overwhelming. Promote a regular practice with your pricing, and remember it’s about the value you’re offering, not the price itself.
For more super relevant information, join us for The Re-Open Strong Challenge, included in the Yogapreneur Collective. Get live webinars, plus the huge online resource library, private Facebook Group, and access to 1:1 coaching all for just $125.