Setting the right price for fitness studio classes can be a delicate balancing act. On one hand, you want to make your classes accessible and affordable for attendees, 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 exercise classes. While it’s tempting to lower your prices in hopes of attracting more members, undercharging can have detrimental effects on your business in the long term.
Here are some of the risks that come with setting your studio class pricing too low.
Perceived Value
When you significantly undercharge for your classes, potential attendees may question the quality of your instruction or facilities. Such messaging can damage your reputation and actually make it harder to attract people willing to pay higher prices in the future.
Financial Sustainability
If you run a class studio, 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 members. 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 fitness studio classes more effectively?
Value-Based Pricing
Using value-based pricing means setting prices based on the perceived value of your classes. Consider factors such as the quality of instruction, facilities, class sizes, and reputation of your studio. If you offer unique benefits or specialised classes, you can usually justify charging a higher price. To start a value-based model, analyse your existing attendees, 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/less-experienced members at a lower price point, and more premium packages with additional perks for more advanced attendees willing to pay extra. The benefit of tiered pricing is that new (and maybe more apprehensive) people will feel that a lower fee for introductory classes is less of a financial commitment. The same can be said for more advanced pricing: those further along in their fitness journey 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 fitness studio while offering members a cost-effective way to access your classes. Offer monthly, quarterly, or annual membership options that allow members entry to a set number of classes over a period of time. Not only does it allow people 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 class studio. 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 members.
ClubRight is the go-to class booking software for hundreds of fitness studios 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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