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Setting your price is a balancing act between three factors: Selling Price, Costs & Minimum Number of Students
We are about to get Math-y in here!!!! I know this may be an uncomfortable topic for yoga teachers, but you MUST know your numbers in order to be successful.
We are going to use a specific equation to help you determine your price and minimum number of students needed to break even.
ACTUAL SELLING PRICE – VARIABLE COSTS = COST MARGIN
FIXED COSTS / COST MARGIN = MINIMUM NUMBER OF PARTICIPANT
Don’t freak out on me!!!! We are going to walk through this step-by-step.
This equation is a Google Sheet Pricing Guide available here.
Pull out a piece of paper and let’s start writing down some numbers.
FIXED COSTS
The costs that are constant no matter how many participants sign up for your workshop.
EXAMPLES: your salary/time, your travel, flat rate for the studio, marketing (flyers printed, FB ad run), paying other teachers.
VARIABLE COSTS
the costs that vary depending on how many people sign up for your workshop
EXAMPLES: materials (books, printed materials, chakra stones), a 70/30 split with the studio, PayPal processing fees
Note: if you have a percentage like a 70/30 split with the studio, you’ll multiply .3 x your actual selling price
DETERMINE YOUR COST MARGIN
Take your actual selling price (what you want to charge) and subtract your variable costs. This equals your cost margin. Don’t worry- you can always change your selling price later. This is just an example for now.
DETERMINE YOUR MINIMUM NUMBER OF PARTICIPANTS
Take your fixed costs and divide your cost margin. This gives you the minimum number of participants to break even.
It will be a decimal number but since people are whole and not decimals, round this number up.
EVALUATE YOUR RESULTS
Do you like these numbers????
Are they realistic?
If you need 75 people to break even on your workshop but the room only holds 10, is that realistic?
If you need TOO many people and you don’t think it’s realistic, then do one of two things:
- Increase your workshop price or actual selling price
- Decrease your costs. Either you make less money or provide “less” for the participants.
If you only need ONE person (or a very small minimum) to break even on your workshop, then do one of two things:
- Decrease your workshop price or actual selling price
- Increase your costs (which is probably how much money you want to make).
Play around with your Actual Selling Price and see what numbers make YOU feel most comfortable.
ONE LAST PIECE OF ADVICE:
Look at the market, what are other people charging for their workshops?
You don’t want to be cheaper than everyone else, but you also don’t want to be way more expensive than everyone else.
I’ll talk about this more in another article.
Setting up your pricing is a balancing act between three factors:
Your actual selling price – You don’t want to be the cheapest game in the market, but you also don’t want to be the most expensive.
Your costs (including your salary) – remember, money is just an energy. How much energy are you putting into this workshop and how much energy do you want to receive from this workshop?
The minimum number of students – is your price realistic and are you able to get a minimum number of students in your workshop?
In a future article, I’ll discuss when to cancel your workshop if you haven’t met the minimum requirements.
What price did you land on for your workshop? Tell us all about it in the Yoga Teacher Talk FB group!
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Unlock Your Energetic Anatomy: The course for yoga teachers who want to deepen their personal practice, advance their teaching and help their students unlock new layers within themselves.
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UNLOCK YOUR ENERGETIC ANATOMY isn’t so much a training program as it is an experience and opportunity to connect deeply with your personal yoga practice.
