Setting your prices might seem a little daunting but here’s a few tips on how you can approach it in a formulaic way with the first step being to set your drop-in rate.
The First Step is to Set Your Drop-in Rate
Your drop-in rate will be the benchmark price you use to go on to define your menu of pricing options. Here’s a few helpful tips and steps to take!
First, work backwards from your goal. How much are you hoping to make per month or year, and therefore what does that translate to into the number of bookings you expect. If you want to make $2,000 a month teaching 20 classes a month then that's $100 per class. Do you think you will have an average of 10 or 20 clients per class? And so based on that what does that imply for the price you need to charge?
Second, work upwards from your market. How much do you think your clients would be willing to pay? How much did they used to pay at the local studio or gym? How often do you think they will attend?
Use these two approaches to help you narrow in on a pricepoint to set for your drop-in classes.
As a reference point the typical cost of a class based on onPodio’s class data has generally been between $6-$10. That’s not to say your drop-in rate should fall within that bound, we certainly have instructor’s on the platform charging less than this and more then this. Ultimately pricing is a very personal decision. It depends on your geography, cost of living and most importantly your goals; so don’t look too closely at what others are doing and focus on what you’re setting out to achieve.
The Next Step is to Create Your Class Packs & Memberships
Setting Your Class Package Pricing
Once you have your drop-in rate then creating your class packages is typically pretty straightforward. As a guide what we’ve seen at onPodio to be a typical approach is to set two package offerings
[GUIDE] A simple guide for setting your class packages
5x Class Packs typically have a ~10% per class discount to your drop-in
- For example if your drop-in is $10 then your 5x pack would = $45
10x Class Pack typically have a ~15% per class discount to your drop-in
- For example if your drop-in is $10 then your 10x pack would = $85
Setting Your Membership Pricing
Pricing your membership option can be a little trickier as it depends on a number of factors including the # of classes you teach per day and what you are including
- # of classes you teach
- Is it weekly or monthly?
- Will it include access to your live classes, on-demand classes or both?
As a starting point we’ve developed a simple guide on how you might price your live class membership. Remember this is just a guide and so you should take into account the specifics of your membership offering, your clientele and ultimately what you hope to achieve.
Once you set your live class membership as the baseline you can then more easily create the membership variations from their (e.g. live + on-demand membership, weekly memberships).
[GUIDE] A simple guide for setting your live class memberships
Step 1: Calculate the # of days per month you run a class
- Count the days you teach not the classes per month because realistically people will only attend a maximum of one class per day.
- For example if you teach on 4 days a week then that’s 16 classes per month
Step 2: Multiply the # of days taught by 60%
- A membership is really designed for your top clients who attend very regularly. So to factor in both their estimated attendance (75% of classes) and a recommended price discount (80% of the drop-in price) we multiply these two numbers 75% x 80% to get a 60% discount factor.
- For example 16 classes per month x 60% = 9.6
Step 3: Multiply the discounted number by your drop-in rate
- For the last step multiply the number above by your drop-in rate and round up or down as appropriate.
- For example 9.6 x $10 drop-in = $96 per month. To make it a little easier you might round up to $100 or down to $95 per month.