㉜ Average market price and historical data
The following is written in German.
Effective Pricing Strategy
“EFFECTIVE PRICING STRATEGY” will be the topic I will share with you.
Background
This article is mainly intended for
“INSTRUCTORS WITH A CERTAIN LEVEL OF EXPERIENCE,”
but I will begin with some background information so that even beginner instructors can understand.
You probably spend your days sweating and having fulfilling lessons with your customers through original dance classes at the sports club.
Amidst that,
have you ever noticed a gap in dance levels among your participants?
NOT ALL PARTICIPANTS are necessarily satisfied with the lesson content delivered by the instructor.
Customer Needs Vary
① I wish the level were a little easier
② I don’t feel anything particular (just enjoying it as is)
③ I want to try more challenging (higher difficulty) dance routines!
If you dig deeper, this is likely how they feel.
MITSURU believes that INSTRUCTORS SHOULD NOT OVERLOOK THIS and should always be prepared with OPTIONS.
Response Strategies Based on Needs
① For those who say, “I wish the level were a little easier”
→ The instructor should present an “EASY VERSION” of the routine during the lesson.
② For those who say, “I don’t feel anything particular (just enjoying it as is)”
→ The instructor should present a “SLIGHTLY MORE CHALLENGING VERSION” and expand the challenge opportunities.
③ For those who say, “I want to try more challenging (higher difficulty) dance routines”
→ Propose and create a “PAID CLASS” as an instructor-initiated offer.
By doing so,
YOU CAN COVER THE DANCE LEVEL GAP FROM BEGINNERS TO ADVANCED PARTICIPANTS.
Flow of Proposing Paid Classes
Now let’s dive deeper into case ③.
When an instructor proposes and plans an event,
AFTER DETAILED DISCUSSIONS WITH THE SPORTS CLUB EVENT COORDINATOR,
the typical flow is: in-club advertisement → web listing → issuance of an event contract.
What Is Effective Pricing Strategy?
As mentioned in MITSURU Blog #31,
when creating a plan for your own paid class (filling out the proposal form),
ALWAYS LEAVE THE PRICE SECTION “BLANK.”
(Do NOT set the price at your own discretion.)
When the event coordinator is younger than the instructor,
they tend to “LEAVE IT TO THE INSTRUCTOR.”
If you enter a price from the beginning, there may be no discussion at all, and that price will simply go through.
After it’s posted in-store,
if you receive a lot of feedback like:
“IT’S MORE EXPENSIVE THAN ○○ INSTRUCTOR’S PAID CLASS,”
the class may FAIL TO MEET THE MINIMUM NUMBER OF PARTICIPANTS and be CANCELLED!
For reference, an example of failed pricing is mentioned in MITSURU Blog #31.
How to Determine the Right Price
To determine a proper price and ensure the minimum number of participants, the instructor should:
① Gather information on current paid classes at the club
→ Find out the AVERAGE MARKET PRICE PER PERSON.
Average market price = the average of all paid classes within that club.
Should you set a HIGHER price?
Or a LOWER price since it’s the first time?
Have these discussions with the event coordinator, considering THE ATMOSPHERE AT THE CLUB.
In fact, for this matter, experience with other companies is not that essential.
It’s more productive to discuss:
“DO YOU THINK THERE ARE CUSTOMERS WHO WOULD PAY FOR THIS RIGHT NOW?”
② Use Past Data and On-Site Feedback
For example:
“Mr./Ms. ○○ participated in a paid class in the past.”
→ This is valuable past data.
Or:
“I’d attend even if it’s paid, just give us more of your classes!”
→ This kind of casual comment, which might seem like a throwaway line,
CAN ACTUALLY BE A VALUABLE STATEMENT IF VIEWED DIFFERENTLY.
Final Decision
After carefully examining the information from ① and ②,
you can then DECIDE:
“LET’S GO WITH THIS PRICE AND MINIMUM PARTICIPANT NUMBER!”
Next Topic
Next time,
I will talk about
“CONTENT & PROMOTION OF PAID CLASSES.”
STAY TUNED!
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