Choosing the Right Membership Models and Pricing Packages for Your Yoga Studio

By Dennis Bluthardt, Namaste Studios®

Selecting the membership models and pricing packages for your yoga studio is not only essential for the business’s sustainability, but your pricing structure will also impact the community growth. Each pricing package you choose will allow a specific type of client to come through your door. A new client, or one that visits occasionally, can use a drop-in visit or class packs. A larger local clientele will still feel comfortable at different price points, so adding a ‘monthly unlimited’ membership package can boost your community.

Your financial health affects your pricing structure and your studio’s ability to serve its members. 

We suggest doing some research (both online and in the field) to gather this data. Check other studios in your area and similar locations based on neighborhood vibes, rent prices, and typical clientele. Make a list of all the different membership packages for you to offer. Have a range of pricing that works, and then pick a price that you feel is fair and honors all your hard work and the value you’ll bring to their lives. Set your price and wait for a bit before re-evaluating the adjusted price.

Remember, a stronger studio culture and a full (hustling + bustling) studio take time to develop. Building this relationship takes time. The exact process applies to pricing. It’s okay to start a bit low at first and only increase after a year or two. Remember, location and the average cost of living don’t change quickly.

The Benefits of Recurring Memberships

Membership models for yoga studios provide a steady influx of cash that is predictable, something that every business owner can appreciate. Understand some of the many reasons why yoga studio owners love solid membership models:

• Fluctuating sales and popularity. Unfortunately, you might go through “dry spells” where fewer people are coming to your classes. This is problematic because you’re never sure how long a dry spell will last, and in the meantime, you’ll need to generate income to cover your basic business expenses. A solid membership model means that people have signed up to pay for three, six, or 12 months of classes in advance, or at least committed to immersive training, which also costs them significantly.

• Promoting a family of clients. Those who have purchased yearly packages or solid membership models will be more likely to drop in more often for classes. They’ve already paid for them; thus, they’ll try to take advantage of as many classes as they can. Pre-paid courses also give an incentive for them to think of attending yoga classes as part of their routine or lifestyle.

• Boosting sales indirectly. Your “regulars” will begin to recommend your space to friends, family, and favorite instructors more often, the more they visit your studio (as well as giving these instructors more referrals outside of your space).

• Incentivizing your employees. “Core” students make for a more predictable work schedule; thus, you can offer teachers more extended contracts and better pay. And the more often these teachers frequent your yoga studio, the bigger following you’ll gain. Knowing your students’ class schedules means you can take note of which teachers you may need less or more of in the future, and who may be capable (and available) of teaching more diverse core classes.

Popular Yoga Studio Membership Models

Unlimited access classes accommodate the busiest of schedules as well as the “I’ll practice when I feel drawn to” mindset. Some students try to come in for just 5, 10, or 20 classes, which can be an adventure in and of itself in some of the larger cities!

Drop-in participation versus unlimited class participation both have their appeals. Some prefer to “live on the edge” in a pay-per-class setup, and others get “more bang for their buck” through the unlimited option.

“Brand evangelists” tend to commit early, and they are typically offered the classes at a lower rate than the public. The mutual benefit is a fantastic community of people who have each other’s backs, just like how we protect ours by driving the rate of the unlimited classes higher for our later evangelists;)

The consistency of an established day and time lends itself to human nature. Some days you’ll almost levitate into the room and through the practice like a bird, while other days you’ll walk into the room and through the practice like an elephant.

How to Choose the Right Model for Your Studio

In the competitive landscape of studios, understanding who your clientele are is one of the most important things you can do for your business. What class types do they prefer? When do they like to work out? How sensitive are they to price? These are all characteristics you should define about your clientele. To find out this information, you can conduct surveys or put together a focus group. Use your findings to create services your audience wants, not what you think they want.

Now that you have an idea of what your studio’s offerings are going to be, the next most logical step to take is to look at what studios (gyms, boutique fitness, etc.) around your area are doing.

What are the prices of their services? What, in detail, do they offer their customers at that price? List out all the unique things they do to get customers. After researching, identify what they don’t provide and make that the highlight of your studio.

Many studio owners now offer in-person classes, virtual classes, and a combination of both. Figuring out how exactly to price these options can be a hassle, especially if your studio is doing this for the first time. However, doing so successfully will give your studio the option of selling more home workouts to people who do not live near you. To figure out exactly how to price this, first, pick out the material or equipment you’d like to use during your workouts.

After you’ve chosen your pricing, make sure you know the “why” behind it. And by “why,” I mean to understand what your Goals are. The problem with most studio owners is that they do not view the problem from this angle. After all, increasing or decreasing your prices directly affects the amount of revenue your business makes, and therefore, your cash flow. This is very important.

Pricing Strategies That Support Growth Without Burnout

Value-based pricing and cost-based pricing are two different ways of deciding what to charge for a product or service. Cost-based pricing means tallying up what it costs you to make the product, then adding a markup on top to make sure you get a profit. Value-based pricing is about understanding what people are willing to pay for a product, based on their valuation of it. The latter usually works better because the price is set at what customers are willing to pay, so customers will perceive the price to be okay. Knowing your product costs what you are willing to pay for it makes you more satisfied. You’ll see the price and feel like you’re getting something good for it.

Limited time offers make you feel like you must buy a product now, because who knows how long the 80% discount will last? Companies do this to get you to act now so you can save (when you are spending more money). The company will also (hopefully) get more sales as a result. After all, no one likes to have their time wasted.

Make your products or services available to as many people as possible. This should be without question. As I mentioned earlier, companies may offer people alternative options based on their income or ethnicity. However, this needs to be done systematically or thoroughly. Creating an application for just that purpose requires things like social security numbers and addresses, and people may find that an invasion of privacy.

Real-Life Examples of Successful Yoga Pricing Structures

Various yoga studios have developed innovative pricing models to improve membership and access to yoga. For example, a studio in San Francisco developed tiered memberships. Instead of having just one membership price, they made it three (basic, standard, and premium). These changes accommodate different levels of income and push students to stay in yoga long enough to “get better” and become more serious about it. As a result, the studio saw a significant increase in member retention and satisfaction since students felt like they had many options and could pick a membership that suited them.

A client in New York began offering pay-what-you-wish classes. They hoped that this model would promote increased participation in their yoga classes, from students who might not be able to afford the pay. Likewise, this initiative also saw high levels of interest and involvement. The students also highly valued these classes and donated an appropriate amount whenever they could (most students donated more than the average yoga class fee by $5-$10 per class).

A studio in Austin pivoted to a subscription-based (all-you-can-take) model and decided to begin charging a flat fee. They found a steady incline in newcomers and consistent attendance by members, post-switch. Here’s why: after removing the restrictions on how often the students can practice, the students visited the studio more frequently. More importantly, these encouraging results demonstrated the power of predictable pricing.

“You’re a yoga studio owner. Your entrepreneurship keeps the lights on, the room hot, and, most importantly, the community together.

Being a business owner also means being the ultimate decision-maker regarding the prices of your classes. You must juggle offering affordable prices with paying your bills. Can you find that sweet spot to make yoga more accessible? Do you need to keep your prices high to keep your doors open? Is it fair to undercharge for your classes when yoga itself is so valuable? Let’s tumble down this rabbit hole, it’s a good one!”

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