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I to increase my prices


SuzieQ
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It is conventional wisdom that small business that raise rate along with market conditions by as much as 10% lose little or no business because of the increase.  Having been in your boat several time in the last 23 years I understand your concern.  

 

If possible, you can increase prices for new business, grandfathering in existing customers for a period of time, making sure you set a date for the eventual increase to all. I don't know how you charge (membership cards, pay by the session??) but letting your best customers know you are doing as much as possible to take care of them can help.

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I agree wtih Kzoo.  Your customers know that prices rise.  Give them ample notice and just do it.  

 

 

 I don't think you need to give them much notice unless the increase is substantial.  If you want to increase revenue immediately, you could give notice of the price increase with an offer to buy yearly membership (or x months prepaid) at the current or discounted rate to secure commitment.

 

I would also say that with the price increase, you will give one guest pass for customer's friends or family to come with to incent new business, with the guest passes expiring in revolving 30-day cycles.  You don't print passes up or anything, you just keep track  This is how the rock gym did it, it was nice to have the ability to bring someone in with you, kind of a feel-good thing.  My wife liked it and signed up.  This would also allow people doing yogurt in other studios to check you out and see if they want to do a switcheroo.

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Like Jerry said...you have plenty of time to prepare them for it. I find when some place raises prices that when they explain why I don't like they are just trying to get more money. Give all a letter explaining that your costs have gone up and to  compensate you are forced to raise prices.

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Like Jerry said...you have plenty of time to prepare them for it. I find when some place raises prices that when they explain why I don't like they are just trying to get more money. Give all a letter explaining that your costs have gone up and to  compensate you are forced to raise prices.

 

Yeah, rent increase is pretty understandable to anyone, hit that one hard.

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 not sure how to do it nicely.  My rent has gone up $200 a month, part of the lease contract.

 

Post this notice in a few places around your studio on some colorful paper or background:

-----

Dear Customers:

 

Recently the company holds my studio lease, Snidely Whiplash Real Estate Holdings, announced they would increase my rent.  Because I need to meet the studio's business expenses, but most importantly to continue to feed my dog Nixie

 

(insert cute picture here)

 

you may see a modest increase in memberships with your renewal. With your membership renewal I'll include a free guest pass so you can bring a friend (or insert other promotion). If you have any questions just see me!

 

Thanks,

SuzieQ

 

----

And nobody will get upset because they will all say "Awwww" when they see Nixie and won't mind any increase because their money isn't going you or even Snidely Whiplash Real Estate Holdings, it's going to a good doggie!

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You all have great ideas!  I like the note about Nixie :D when I leave to go to the studio, I always tell her I have to go to work so I can buy her her favorite treats  :D

 

The prices would not go up a lot..... in fact the drop in prices would stay the same, just the packages, which IMO were set too low.  

 

I can let existing customers know through the monthly newsletter and let them buy a package at the old price.  I also like the incentive of bringing a guest.  What I currently do, is if someone brings a new student to the studio they receive a free class, the new person pays.  

 

I am also looking at other avenues of bringing in money..... we will now be doing kids bday parties, I will also advertise that the space may be rented out, and now that I have my new logo, I'm going to work on getting tshirts.  Also one of the teachers and myself are going to be putting together a yoga immersion

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you should see if there isn't some government money available for providing yoga services to seniors or school kids

 

maybe through "Wellness" programs or something like that

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