How much should you charge for kids’ classes?

Most club owners set their price the same way. They look at what the club down the road charges, and go a little lower. I did exactly that.

It feels safe, but it nearly always means undercharging. And undercharging doesn’t just cost you money. It can cost you members too.

What happened when I raised my prices

When I started, I charged £16 a month. It was very quiet. When I went up to £30 a month, more families joined, not fewer. When I raised it to £50 a month, we became close to fully booked.

Our own club. Plenty else changed over those years too, so I won’t pretend price was the only thing. But raising it never emptied a class.

It sounds backwards, but it makes sense when you think about it from a parent’s side.

• Price tells parents what to expect. A very cheap class can look like something to fill an hour. A properly priced one looks like something taken seriously.
• People value what they pay for. Families who pay a fair price tend to turn up, every week.
• Limited spaces are worth more. If your classes have a set number of places, a fuller class with a waiting list is a reason to join now.
• More money makes a better club. Better coaches, smaller groups, costumes, shows. Parents notice all of it.

One honest warning: this only works if the class is genuinely good. A higher price makes a great class look great. It won’t rescue a poor one.

A simple sum to find your price

Instead of starting with what others charge, start with what you need. Work it out for 80% full, over 10 months.

1. Add up what you want for a year. What you want to take home, plus every cost: hall hire, coaches, insurance, licences, kit, software.
2. Divide it by 10. That’s what you need each month.
3. Count your spaces and take 80%. Every class, every space, then 80% of that.
4. Divide the monthly figure by those spaces. That’s your price per child, per month.

An example

If a lot of your children come to more than one class, do the same sum per class space instead of per child.

Why 80%?

You’ll rarely be 100% full. Children start and leave, siblings come and go, and a class running at about 80% still feels busy and lively. If your price only works when every space is full, it doesn’t work.

Why 10 months, not 12?

Ten months is easier to track, and it gives you room for the summer dip, holidays and the odd quiet month. If you hit your number in 10 months, the other two are a bonus. In the example above, those two months are worth about £7,500.

Termly or monthly?

It matters far less than the number itself. Charge the way the families near you are used to paying. If you charge by the term, it’s the same sum: work out the year, then divide by your terms instead of by 10.

When to put your price up

• When your classes are full, or you have a waiting list.
• When your costs go up, such as a new hall or another coach.
• When you’ve added something, like a show, new kit or extra sessions.

Give families at least a month’s notice, and say plainly what the money goes on. Most parents are fine with a fair rise from a club their child loves.

A quick checklist

1. Stop pricing from the club down the road.
2. Add up what you want for a year, costs included.
3. Divide by 10 months, then by 80% of your spaces.
4. Charge termly or monthly, whichever your families expect.
5. Review your price whenever classes fill up.

Questions