A question that studio owners often struggle with is whether they should charge a premium to teach as the studio owner, whether they should use a tiering system to price sessions and pay, and how to manage and implement this type of structure.
There are a couple of different ways to think about it.
#1. Business is an exchange of value
If what you offer is high value, in that you are a highly experienced instructor, your clients get the results they expect and you have invested heavily in developing your skills and talent, then what you charge should reflect that.
Charging a premium rate for your service is simply about pricing yourself at the point of value
#2. The Law of Supply and Demand
If you are teaching and your schedule is full, yet you want to see your bottom line grow, then you have two options. You can add more hours to your teaching schedule (and risk burnout) or you can raise your prices and teach less.
When supply is limited, such as when your schedule is full, price can balance out your demand and you can feel comfortable with both the number of hours you teach and the income you are making
Also consider the following:
1. Cheap and quality are not typically synonymous. It’s entirely possible that you will be considered more valuable if you charge more. Those whose wallets allow it and who want quality will have the desire to train with you.
2. The pressure of needing to work all the hours you can to pay the bills will be reduced. You will have the option of reducing your teaching hours and avoid suffering from burnout.
3. You’ll have more time to invest in other area's of your business that also require attention
4. You'll be fresh for each and every client
So, having different levels of pricing within your studio can be a good thing. But there is one big caveat: Don’t be the only instructor in your premium pricing tier.
If you intend to ever take a vacation or time off, having another instructor who charges the same and is considered of similar quality is extremely helpful to cover you at these times. You’ll also avoid creating a big divide between yourself and your other instructors.
Remember: Bringing other teachers up the curve with you will help to grow your business.
If you can raise the value of the other instructors in your studio - by ensuring they are quality instructors and even possibly investing in their training - then everybody wins.
Price point is not about ego. It reflects value.
If you do decide to raise your rates or charge more be sure to:
- Give plenty of notice to your long standing clients and give them the opportunity to purchase packages at the current rate
- Offer your clients an alternative teacher and plenty of time to adjust
What are your thoughts on premium pricing? Send me an email and let me know what you think. I respond personally to every email I receive.