Setting the right price for your martial arts classes can be a delicate balancing act. On one hand, you want to make your classes accessible and affordable for students, but on the other hand, you’re still running a business so you need to ensure that it remains profitable and sustainable in the long run.
So, how can you strike the perfect balance?
First, let’s talk about the dangers of undercharging for your martial arts classes. While it’s tempting to lower your prices in hopes of attracting more students, undercharging can have detrimental effects on your business in the long term.
Here are some of the risks that come with setting your martial arts class pricing too low.
Perceived Value
When you significantly undercharge for your martial arts classes, potential students may question the quality of your teaching or facilities. Such messaging can damage your reputation and actually make it harder to attract students willing to pay higher prices in the future.
Financial Sustainability
If you run a martial arts school, you’ll be no stranger to the various expenses it brings, including rent, utilities, insurance, equipment, and instructor wages. If your class prices are too low, you could be making it unnecessarily challenging to cover these costs and make a profit.
Inability to Invest in Growth
Without enough money coming in, you’ll struggle to reinvest in your business by upgrading facilities, hiring additional instructors, or expanding marketing efforts to make sure you’re always attracting new students. Without investment, your business will begin to stagnate and its future becomes uncertain.
So now we understand the risks of setting your prices too low. What pricing strategies can you use to make sure you’re pricing your martial arts classes more effectively?
Value-Based Pricing
Using value-based pricing for your martial arts club means setting prices based on the perceived value of your classes. Consider factors such as the quality of teaching, facilities, class sizes, and reputation of your school. If you offer unique benefits or specialised training, you can usually justify charging a higher price. To start a value-based model, analyse your existing students, conduct some market research and have a look at how your competitors are pricing their classes.
Tiered Pricing
Implementing tiered pricing allows you to cater to different segments of your target audience. You could offer basic packages for beginners/lower-skilled students at a lower price point, and more premium packages with additional perks for more advanced students willing to pay extra. The benefit of tiered pricing is that new (and maybe more apprehensive) students will feel that a lower fee for introductory classes is less of a financial commitment. The same can be said for more advanced pricing: more experienced students will commit to paying a higher price for more challenging classes.
Membership Plans
Subscription-based membership plans provide a steady stream of income for your martial arts school while offering students a cost-effective way to access your classes. Offer monthly, quarterly, or annual membership options that allow students entry to a set number of classes over a period of time. Not only does it allow students to budget for their class fees, but it also helps you build a predictable, recurring income.
Overall, finding the right balance between affordability and profitability is crucial for the success of your martial arts school. Remember, your pricing should reflect the quality of your instruction and the value you provide. Implementing effective pricing strategies will help you avoid undercharging, and it means you can focus on delivering valuable training and experiences to your students.
ClubRight is the go-to martial arts club management software for hundreds of dojos across the UK. It’ll help you take care of everything from managing memberships and billing to class bookings and online joining – plus a whole lot more. Give us a call today on +44 (0)203 884 977 or book a free online demo with one of our product experts to find out why we’re trusted by more than 800+ businesses worldwide.
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