Thread: Raising prices

I teach a private yoga class to a workplace group

It was set up about 2 years ago and desperately underpriced at only $30/hour. Shortly after it began, I raised the price to $35. The class usually has 8-10 people in it, they're paying less than $5 each per class, and I come to them.

This class is right at 5pm so it fills a timeslot where I can't be making any $$ otherwise. But I'm generally charging $50/hour for offsite classes.

Obviously it's time for another price increase. I think I need moral support more than advice -- they're such nice ladies and it's hard to talk about money, especially with a whole group rather than an individual.

Should I tell them their class started out grossly underpriced and have one big rate hike, like $10/class ? Or should I nudge it up by a bit ($5) and go through this all over again in 6 months or a year? Is there a good way to bring it up?

Also on this topic, My regular classes have been $8/class ($48/six week session) for, 5 years now. People who take more than one class per session get a big price break.

Is this price in line for small-town middle America? Or is it time to raise those too?

I think nudge it up gradually. Although you deserve to be paid a lot more, and it is totally reasonable for them to pay more, a big hike may shock them a bit, and they won't realize that they are still paying a fair price.

Nudge up gradually.
that's what I have done in my dance classes and performances, it seems to work better than raising all at once.
Also, give a time frame:
"In another month/next session/prices will be raised $x. "
this way there are no surprises.
good luck.

Hi Lauren,
Going rate around here is $10/class for those not teaching in rec centers.

Lauren, your prices seem a little low. When I taught at my workplace fitness center, I initially charged them $100 an hour, which they gladly paid. (I should clarify that my workplace was very restricted and they were excited to find an instructor who had access...) I took a break from these classes for a while b/c I was so overloaded at work, and when they asked again, I told them I would have to double my rate, which they were fine with. This was an unusual situation, though.

I charged $60 for a 6-week session for years, then changed it last year to $75 and have gotten no complaints. I also offer a multi-class discount: $10 off each class. I have a lot of double and triple dippers, which is great. I don't normally offer a per-class price except for technique classes, but the drop-in rate is $20 because I don't like drop-ins. ;-) I also have a drawing at our end-of-session parties for a couple of $25 off coupons, which are very popular (and keep students coming back).

I agree with danielabellydance that price hikes should, ideally, be gradual.

Originally Posted by Lauren_

Also on this topic, My regular classes have been $8/class ($48/six week session) for, 5 years now. People who take more than one class per session get a big price break.

Is this price in line for small-town middle America? Or is it time to raise those too?

Hi Lauren:

We're in similar places in the US (you in southern or mid-southeast IL, I think, and me in mid-northwest IN), your class prices seem similar to what I often see around my area. Certainly there is a "range" -- with dancers in the Indianapolis area charging more and dancers in smaller towns/cities like my own charging less.

The community center where I teach asks that I keep my prices "in range" of what other dance programs charge at the center. I watch the center's brochures (which are published 3 times a year) and, if I see price raises in other classes, then I'll review my own.

Right now, I run a beginner BD class that meets 1 1/2 hours on Monday evenings for 10 weeks. The price is $85.00 for the 10-week session, which is just over $5.50 per hour (10 weeks=15 hours) The center where I teach does not allow drop-ins. This is lower than I'd like, but in line with what's being charged for the ballet, clogging, salsa, ballroom, modern and jazz classes offered at the center.

If I were in your situation, I think I'd canvas other studios in the area and see what's being charged. That should help you determine if raising your prices would help your situation or hurt it. Also, if you decide to raise the cost of classes, I'd do it all at once. Just present the facts to the workplace yoga group: say something like "since we started our classes, I've done a lot of research into appropriate charges for classes such as these. My research shows that classes of this type in our locale are priced in the $$$ range. I feel I must raise my prices to XXX in order to continue."

my 2cents ...

Out here in the Sacramento Valley, it seems like classes are about $15 each (yoga, belly dance, etc), but everything's more here, so go figure. Yours sound like a deal!

Just tell them, "California style classes, starting January 1--$15 each"

I usually raise my prices around New Years, significantly. For some reason, people object less that way. however, I can only speak from performing ( I am not running open classes currently)

Maybe I'm just weird but I personally would be upset if my instructor continued GRADUALLY increasing the price. I would much rather pay one large increase. To me it's like opening your auto or home owners insurance every six months and seeing a rate increase. ARGGHHH. Just give me one increase and let me deal with it.
How about telling your class you will be increasing the cost of the class and wanted to know if it was easier for them to pay all at once or have it increase over the next six months or however you do it. Shrugs. Hope that was helpful.

Moral support? Well - you've been taking classes and bettering your knowledge of both Yoga and dance over the past few years, so you're even better than you were back then so you've earned a pay increase.

Considering most employers give employees annual raises, you should do the same for yourself!

You need to bring your class prices up to the local norm, otherwise you're "undercutting".

Other costs that you pay out to teach (rent, gas for car, electricity for your studio etc.) are going up, you have to subsequently increase fees.

Remember, you need to pay yourself what you are worth! Hope that helps.

I agree with elljay on all of her points - well made!

I increased the costs of my private/semi-private lessons recently because of building the new studio. I figure providing a learning environment that is both esthetically pleasing and completely dedicated to a dancer's needs deserved an increase in my fee. My current students didn't mind at all, and it doesn't seem to scare the new ones away either.

I agree that gradually raising prices could be annoying for students, especially if you're adding a few dollars every term. If I were a student, I'd be concerned where it was going to stop. I vote for a one-off increase. If you really need to hike up prices and don't want to do it all at once, you could perhaps raise the price twice at most, and clearly communicate what the final price will be. Eg: "We will be introducing the full price rise in two stages. Prices will be raised to only $xx next term, rising to the full price of $xx the term after." Overall, I try to keep my price hikes to one a year. I agree with the above post - after new year seems a good time to do it.

I hear you, it being hard to rise prices for those lovely ladies. But when I think about the activities I undertake and pay for, I expect to pay a reasonable amount. I don't think any less of the teacher for charging what she's worth! And I don't expect discounts just because I'm loveable. Ultimately, if you work for peanuts you run yourself down (because you then have to work to make money elsewhere), or start resenting your students. That's no good for anyone!

Thank you all! This has really been helpful.

I'm with Michelle...do the price hike in one go

The way I see it, that way the grumblers can have their one shot at whinging. If you increase gradually then you'll be subject to the grumble white noise over a longer period of time.

I'm sure your students also realise that they are getting a bargain price there...you won't find cut rate classes handy to them like those elsewhere!

When someone raises their rate or price I always think of the justification politicians use when raising their salaries: "well, if you pay peanuts, you get monkeys".