SuzieQ Posted June 3, 2014 Share #1 Posted June 3, 2014 I think I will wait until September.... not sure how to do it nicely. My rent has gone up $200 a month, part of the lease contract. I get really nervous when I start figuring out #'s. Link to comment Share on other sites More sharing options...
JerrySTL ★ Posted June 3, 2014 Share #2 Posted June 3, 2014 You have plenty of time to give your customers notice. You could put a sign on the door or something. Maybe email your customers if you have their addresses. 1 Link to comment Share on other sites More sharing options...
petitepedal ★ Posted June 3, 2014 Share #3 Posted June 3, 2014 Never fun...but it has to be done.... Link to comment Share on other sites More sharing options...
Square Wheels Posted June 3, 2014 Share #4 Posted June 3, 2014 It's not a big deal. I'm sure you have a great studio and people know that as life goes on things get more expensive. They might whine a little at the beginning, but they'll get over it. Link to comment Share on other sites More sharing options...
KrAzY Posted June 3, 2014 Share #5 Posted June 3, 2014 could you do a fund raiser to keep the lesson prices down? Maybe hold a 50/50 raffle that could help you off set some of the costs so the people are not pinched so hard Link to comment Share on other sites More sharing options...
Kzoo Posted June 3, 2014 Share #6 Posted June 3, 2014 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. 1 Link to comment Share on other sites More sharing options...
jsharr ★ Posted June 3, 2014 Share #7 Posted June 3, 2014 I agree wtih Kzoo. Your customers know that prices rise. Give them ample notice and just do it. Link to comment Share on other sites More sharing options...
Randomguy Posted June 3, 2014 Share #8 Posted June 3, 2014 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. Link to comment Share on other sites More sharing options...
kingtermite Posted June 3, 2014 Share #9 Posted June 3, 2014 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. Link to comment Share on other sites More sharing options...
Randomguy Posted June 3, 2014 Share #10 Posted June 3, 2014 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. Link to comment Share on other sites More sharing options...
Chopped Liver Posted June 3, 2014 Share #11 Posted June 3, 2014 Some options: 1) straight price raise (ie...passing the cost on to the customer) 2) Maybe you could sell additional products.....yoga mats, yoga clothing, stretch bands, blocks, etc. 3) Maybe a smoothie bar 4) Maybe you could expand operations for add'l revenues 1 Link to comment Share on other sites More sharing options...
Thaddeus Kosciuszko Posted June 3, 2014 Share #12 Posted June 3, 2014 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! 4 Link to comment Share on other sites More sharing options...
SuzieQ Posted June 3, 2014 Author Share #13 Posted June 3, 2014 You all have great ideas! I like the note about Nixie 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 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 Link to comment Share on other sites More sharing options...
Nate Posted June 4, 2014 Share #14 Posted June 4, 2014 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 Link to comment Share on other sites More sharing options...
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