So you’ve been planning the launch of your brand new yoga business and opening day is getting closer. You’ve arranged everything from recruiting instructors and renting a gorgeous space to installing access control and door entry systems.
Whilst this may seem like the most difficult part of opening a yoga studio, this is just the beginning. Below is an overview of how yoga studios make money as well as how to work out your profit with a yoga studio profit calculator.
What Makes A Yoga Studio Profitable?
The main problems faced in the early stages of opening a yoga studio are simple things such as deciphering what yogis will actually pay in the long run. Whilst some yogis are absolutely okay spending $100 on workout clothes, others may struggle to pay their monthly membership.
Across the USA, the profitability of your yoga studio depends on the following factors, which include:
- Total number of students
- Revenue vs. expenses split
- Effective utilization of the space
- Community engagement
- Value-based price structure
Across the industry, one thing remains clear. The most profitable yoga studios are always the most efficient. These studios are known to fill four to five classes daily- - including private classes.
Some studios find it more profitable to offer a wide variety of classes weekly, as opposed to simply specializing in one branch of yoga alone. Additionally, in some of these yoga studios, the owner will teach around 75% of the classes themself. This can help you save a lot of money in the early days, as you will be spending significantly less on instructor costs.
Yoga Studio Profit Calculator - How To Work Out Your Profit
In order to understand exactly how profitable your studio is, you need to work out how much money is coming in on your yoga studio income statement, and your total expenses - including salaries.
The best way to decide upon a salary is to base it on their experience. According to Glassdoor, the average salary for a yoga teacher is approximately $37,900, annually. Per class, this would put them in the $35 – $100 range.
To work out your yoga studio’s profit, estimate how much you make from each class in a month, as well as the average amount you expect to make from any additional products you sell. Thereafter, subtract salaries for your teachers and other staff, as well as monthly expenses like studio rent, your access control system, and product stock.
The amount that is left is your yoga studio’s monthly profit.
How Much Should Your Classes Cost?
One of the main challenges facing new yoga studio owners is figuring out how to make your yoga studio profitable, with most studio owners asking the same question, “are yoga studios profitable?”.
Some may be surprised when they receive their first yoga studio income statement, unsure of where exactly their money has gone. For this purpose, it is imperative that you take note of exactly what works and what doesn’t.
Research has shown that around 44% of yogis will spend between $11-60 on yoga classes monthly. Once a class reaches $30 or more, it is regarded as a bit too expensive.
However, this does not mean that you need to keep your prices within this price range. While the majority may agree that over $30 for a yoga class is too much, there are still some who would easily spend between $30-50 and more on yoga classes.
So, to determine how much you want to charge for your yoga classes, you need to consider your ideal target clientele. For example, if you are targeting young students, you may want to make them more affordable than you would if you were targeting a middle-aged demographic who has had more time to build up their careers and savings.
Besides thinking about how much your target yogis can afford, it is often recommended that you set your price high and then offer discounts when opening your yoga studio. Not only will this attract new customers but it will also cater to a wide variety of existing ones.
What Can You Sell In Your Studio To Make More Money?
It can be hard to own a profitable yoga studio based solely on classes. Most yogis are dedicated to their athleisure wear, equipment, and other merchandise. For this reason, most yoga studios usually include a merchandise section. This is a great way to boost sales and also acts as free marketing because your clients can wear your brand.
Another great way to make some extra cash is to sell things such as healthy juices, smoothies, or other snacks for people to refresh themselves with after a class.
You can also partner with local companies, creating mutually beneficial collaborations that can offer your customers additional benefits. Having these extra things will help you to see more money coming in and, therefore, you can enjoy a bigger profit.