The quickest way to cause harm to your yoga business is to devalue what it is that you sell. Sadly, in the world of yoga studios, discounts often become so common that they effectively lower the market price permanently. Of course, this doesn’t mean all discounts are bad, but it does mean you should be mindful about what discounts you have and how often you have them.
Here are three things to think about when you consider whether to have a discount:
What is the intention of this discount?
Is the intention to introduce new people to your studio, or is it intended to bring people back? Do you want to reward your loyal customers, or are you working to make the sporadic customer more loyal? Different discounts should be used to target different people. Setting an intention will help you figure out which discounts to offer and who you should offer them to.
Will this discount bring you a flood of cash?
Not all discounts are the same. Ten people purchasing an annual membership for $800 brings in a lot more money than 300 people buying a $5 pass. Think about having discounts that reward your loyal customers even if you’re going to sell fewer of them.
Does this discount reward or penalize your loyal customers?
There is a cost to having discounts that people rarely think about which is: how does my customer that pays full price feel about this discount? Did they have an opportunity to participate too? Is your studio now three times more crowded for people who are used to having more space? There is always an extra cost to having a discount, and it comes in the way of disrupting your customer that pays full price. Discounts that minimize disruption to your best customers are far preferable than a discount that causes problems for your loyal students.
By really thinking hard about what the intention of your discounts are for your business, who you’re trying to please, and taking care not to disappoint your best customers, you’ll likely find that you have far fewer discounts, and that the ones you do have will be more effective at achieving your objectives.
Andrew Wicklander is the founder and CEO of Tula Software, a software system used by yoga studios around the world that helps them run their businesses with payments, registrations and more. For more information visit https://tulasoftware.com/.