Why increasing your prices occasionally is a smart move
Raising rates can feel daunting when you’ve worked hard to build a loyal community and want to avoid upsetting the balance. But in the lifecycle of a thriving studio, occasional price adjustments are not only normal, they’re necessary. They help you keep pace with inflation, rising operational expenses, and the investments you make to enhance your members’ experience.
Your members aren’t just paying for classes—they’re paying for an entire ecosystem: the quality of your instructors, the welcoming atmosphere you create, the condition and variety of your equipment, and the results they achieve with your help. If your prices have stayed the same for several years while the value you deliver has steadily increased, you may actually be undervaluing your service.
When done strategically, a price increase isn’t about squeezing more from your members, it’s about making sure your business is sustainable so you can keep delivering excellence. Higher margins let you reinvest in the things your community cares about most: adding new class formats, hiring specialised trainers, offering more flexible schedules, improving facilities, or hosting events that bring your members together. Over time, these enhancements can strengthen loyalty and attract new members who are willing to pay for quality.
Let’s take a look at how this might work:
.png)
Evaluating your current pricing structure
Ask yourself the right questions
Before making any adjustments, assess whether your pricing still matches your costs and market positioning. Some key questions to guide you:
- When was the last price increase? If it’s been more than two or three years, your costs have likely risen while your prices stayed still.
- Have operational expenses climbed? Consider everything—rent, wages, utilities, insurance, software, equipment maintenance, even cleaning supplies.
- Have you added more value since then? Expanded timetables, more experienced instructors, or upgraded spaces are tangible improvements that can justify higher rates.
Compare with other studios
Do a little competitive research. Look at similar boutique studios in your area: yoga, spin, barre, reformer Pilates. Looking at direct competitors is valuable, but looking at other studio types can also help you get a better idea of the market as a whole.
- If you’re at the lower end, it might suggest you’re competing on price rather than on quality.
- If you’re already higher, you’ll need to clearly communicate the added value you provide to avoid pushback.
Pro tip: Don’t only check the cost per month—compare what’s included. A £70 membership that includes unlimited classes, free workshops, and guest passes might actually be a far better deal than a £60 plan elsewhere with restrictions.
Decide if now is the right time for an increase
Deep dive into financial health
Rather than relying on instinct alone, base your pricing decision on real numbers. Review your last 12 months of financials and look for:
- Eroding profit margins — A 3–5% drop compared to last year suggests your costs are growing faster than your revenue.
- Overbooked classes — Consistent waitlists and packed timetables mean demand exceeds supply.
- Investment recovery — If you’ve made significant upgrades, such as purchasing new equipment or renovating, a price increase can help recoup those costs without cutting into other budget areas.
Financial-based checkpoints
Some industry benchmarks to guide your timing:
- Inflation tracking — If inflation is running at 4–6%, raising prices at a similar rate simply maintains your earning power.
- Lifetime Value (LTV) boost — Even small increases add up; a £3 monthly bump for members who stay 18 months equals £54 extra per person.
- Churn vs. gain analysis — Compare potential revenue gains against possible cancellations. In many cases, even with slight churn, you still come out ahead.
- Capacity utilisation — Operating at over 85% capacity is a sign the market can sustain a higher price without significant risk.
- Seasonal advantage — Price changes during high-demand periods (January, September) are often better received.
-
Decide on your price increase approach
When you know a change is needed, the how is just as important as the what. Here are some strategic approaches:
Small, Incremental Increases
What it is: A gentle 3–5% increase annually.
Pros: Feels manageable for members, especially when tied to visible improvements.
Cons: Requires more frequent communication.
Best for: Studios aiming for predictable, steady growth.
Example: If you raise £2 for a few sequential months, most members barely notice, especially if it coincides with a new class type or studio refresh.
All at Once
What it is: A single, larger jump after years of no change.
Pros: Quickly catches up with inflation and market rates.
Cons: Can shock members if not explained well.
Best for: Businesses significantly underpriced or introducing major upgrades.
Example: Ideal after a studio renovation, a rebrand, or adding premium services such as reformer equipment or infrared heating.
Grandfathering Loyal Members
What it is: Keeping existing members on their current rate while applying the increase to new sign-ups.
Pros: Protects loyalty and reduces cancellations.
Cons: Slows down the full revenue benefit.
Best for: Tight-knit communities where member retention is a priority.
Example: “Founding Member” pricing can be used as a perk to reward long-term members and as a selling point for early sign-ups.
Timing with Demand Peaks
It’s a good idea to pay attention to when exactly your pricing should be increased, and planning ahead to align the increase with naturally high enrolment periods. This way, new members won’t compare old rates and returning members may be more receptive. With clear busy seasons, it is easier to determine what the best timing is for the price increase. Usually, the best time for increase will be in early January or September, when people are most motivated to commit to their fitness goals.
How to communicate the price increase to members
Be transparent and positive
The way you frame the change can make all the difference. Instead of focusing solely on cost increases, highlight the value you’ve added and how the extra revenue will directly benefit your community.
For example:
“We’ve kept our prices the same for three years, during which we’ve added more classes, expanded opening hours, and introduced specialist workshops. To continue offering this quality and to bring even more to your experience, our membership rates will increase by £5 from October 1st.”
Show value, don’t just tell it
Members will be more receptive to price increases when they can actually see how it will be benefiting them, promising more than just words.
- Share photos of new equipment or studio upgrades.
- Spotlight member testimonials about the improvements they’ve noticed.
- Create a “What’s New” board in the studio so people can see where their investment is going.
Communication checklist
- Advance notice — 4–6 weeks is ideal to give people time to adjust. Don’t just send one communication — people may miss it and need to be reminded as the date approaches and their fees change.
- Multiple touchpoints — In-person announcements, email, social media, and posters in the studio.
- Member-first tone — Express gratitude and emphasise your commitment to keeping prices fair for as long as possible.
Extra tip: Offer members the option to pre-purchase or extend their current plan before the increase—this can actually boost revenue right before the change.
What to expect After the Increase
Short-term shifts
Expect a small number of cancellations, but don’t panic—these are often from members who weren’t highly engaged to begin with. Focus on your core, active community, who will value consistency and quality over price.
Long-term stability
Once the adjustment settles, you’ll have the resources to reinvest in your studio and maintain high standards. Over time, the improved member experience and your ability to adapt to market shifts will outweigh any short-term drop in numbers.
Final Thought:
A price increase isn’t a signal that your business is struggling—it’s a sign that it’s growing, evolving, and ensuring long-term sustainability. By approaching the process with careful planning, market awareness, and clear communication, you position your studio as a place worth investing in. Your members joined for the quality you offer and when you consistently deliver on that promise, a modest increase becomes not just acceptable, but understandable. In the end, the goal isn’t simply to raise prices, but to raise the perceived and experienced value so that your community continues to see your studio as an essential part of their wellbeing and lifestyle for years to come.
