Happy Jane's Yoga Journey: #4 Price is Right
ane returned home after her evening yoga class, and the first thing that grabbed her attention was a television news report that said how more and more millennials were turning to Mind & Body exercises like Yoga and Pilates to lead healthy lives post the pandemic.
Only quite recently the govt. had announced that vaccinated people were no longer required to wear face masks indoors. A few weeks afterwards there had been a great influx of new students at Jane’s studio which had spiked the business. Although Jane was doing much better than before, she still had noticed how most of her students were people in the age group of 35-50. There were hardly one or two students above 55.
Jane’s own mother had hailed yoga as an essential necessity for living a long life. Jane was disturbed to see how the COVID pandemic had affected so many elderly folks. She wanted to make a difference in this respect and felt that a post-COVID recovery class that mainly focused on revitalizing elderly people and boosting their immunity could help her do that.
The very next day Jane met with a couple of her instructors, Shirley and Cynthia, and proposed to them this idea. Both of them were kind of excited about this and already had a couple of people in mind who could really use that kind of class. However before they could start calling up their leads, Jane figured that they needed a pricing structure which they could propose to new members.
Shirley suggested, “We could work backwards from our costs as usual. First we estimate how much renting out a facility like ours would cost for the entire duration of the class and then we’ll add the variable costs like instructor fees, electricity and everything else.”
Cynthia added, “We’ll have to take care of some other things too, like water bottles, yoga mats and make sure that we have all the essential medical supplies, given that we’re dealing with a more senior clientele here..”
Jane agreed to what they said. While the next set of morning classes began and Shirley, Cynthia got busy holding them, Jane took some time to arrive at the following calculations in her notebook.
Once she had come up with a possible price, she checked her watch, it was almost eight. Shirley and Cynthia had winded up their sessions and were having a casual chat when Jane came up and showed them the final price that she had arrived at. Seeing the calculations Cynthia said,
“Jane, don’t you think these are a little bit on the higher side?”
Shirley agreed and said, “I heard there was a similar studio a couple of blocks away that was offering a similar COVID centric yoga course. It was a two week unlimited offer for just $25 bucks!”
Cynthia intervened to correct her, “No but that’s just an intro offer to bring in more clients to try their service.”
Jane wasn’t too sure about lowering down her prices. She argued that, “Even though our prices might seem a little high, we can add more layering to our 10 day course and ensure that we deal with most if not all of the issues our clients might be facing post-COVID.”
Shirley, who had just double-checked the pricing of the competitor studio, stopped scrolling her phone and said, “That’s true. Plus I think 20 bucks should be the per class price for a 10 day class pack. For drop-ins we should charge a little higher, right Jane?”
“True, drop-ins must not cost less than $25. 10 class packs can be $200. But what about more classes, do you think we should go higher than 10 per month?”, Jane asked.
Cynthia suggested, “I think we should try keeping it at 10 for the first month and see what kind of response we get.” Shirley agreed to this.
Jane exclaimed with a sigh, “Woah..starting a new course is tough. Guys, I am a little scared though. What if we don’t get enough clients in the first month? Sure we do have some good leads, but do you think we should offer a discount to new clients for at least the first month?”
Both Shirley and Cynthia fell into a deep thought and didn’t know what to say.
Jane paused for a second before saying, “Alright let’s offer a 20% discount to new members. I think we can do that for the starting month and post that we’ll decide if we should continue with the discount or not.”
Cynthia and Shirley nodded their heads in agreement.
That evening, Jane got in touch with her support executive from Bookee to sit on her website and update the new COVID recovery class on both her pricing and scheduling pages. Within 15 minutes, the class went live on all her class schedules for next month. Whether it was her website or mobile app, new and existing customers could easily book the class in just three clicks.
Jane shortened the link to the new class booking page and floated it through all her client circles and social media channels. The promotions and paid-ads kept running for a couple of weeks before the class were to begin.
Next month when the class actually happened, Jane was fascinated to see full attendance on the very first day!
Jane made use of some definitive pricing strategies to promote and sell a new yoga class online. If you’re looking for a simple way to ease out online bookings for new customers, click the button below!