So now you have figured out your product/service and you are ready to market for it. Then you hit a snag. How do you price your dance product? What packages should I offer? This is usually one of the hardest things to do… and the most important. Pricing not only determines if you will be able to keep your doors open, but it also determines whether someone becomes a client.
There are several factors to be considered when determining how you will price your dance, but in the end, it’s just a number you are picking. And the good news is, you can change the number in the future – if you have a solid brand, this should not cause too much friction between yourself and your clients.
There are 3 main ways that dancers can typically charge for their services:
- By the session (for example, $125 per session)
- By the month (for example, $500 per month)
- By the package (for example, a 6-month package for $3,000)
All of these are viable options to consider for your pricing and sometimes, people incorporate a model where all three options are available to clients. However, we highly recommend the “By the package” approach for the following reasons:
- It makes your income more predictable and stable. Since your clients have pre-paid for a package, you can forecast your revenue and not be worried about late payment. This will enable you to plan better on how to meet your expenses such as rent.
- Clients who sign up for a package are usually going to take the classes more seriously. This is better for you because you get to see results. They are willing to make an investment and commitment so they would not slack off. I find that working with clients who share the same goal, offers a very satisfying feeling.
Okay now, How do you create your package?
Step 1: Decide how much individual coaching each of the clients requires to attain their goal.
This includes defining what kind of goals you and the client want to achieve. Is it to be able to dance at their wedding? Is it to compete? Is it for weight loss or fun? Answer these questions:
- How many months will be needed to attain the goal?
- How many sessions in a month?
- How long does a single session last?
Make your decision based on how much coaching will be required to achieve the set goal, how much coaching are you willing to provide and how much coaching clients will sign up for.
Step 2: Determine what value-add or perks you will include in your packages.
For example competitions, assessments, personalized dance coaching plans, and reports, customized exercise and meal plan, etc.
Step 3: Price your packages.
There are several factors to consider when pricing packages. Look at your target market and niche, your experience, your objectives and what else is included in your coaching package. You could also do some research into your competition’s pricing, but this, sometimes, does you more harm and good. Remember that your dance company should be able to pay its own bills. Make sure you have a clear understanding of what the expenses are I.e. rent, electricity bill, licenses and all. Have a target amount that you should make in a year, including profit – unless you are doing it for charity!
These steps should enable you to better price and package your dance services. When you are starting out, you may make a few mistakes but remember that nothing is cast in stone and you can always make changes along the way. It is a learning process.