Pricing your classes or sessions appropriately can be tricky. The goal is to convey value to your potential clients so they are willing to pay the price you've set. On the other end, you want to set prices that are attractive to clients so that there's little or no hesitation to purchase.
Here are 5 pricing tactics to increase enrollment:
When a consumer is presented with an offer, a key element in the decision to accept or reject is whether it appears to be a “fair deal” or not. The goal of anchoring is to make a class or session look like a great deal by placing it next to a higher priced class/session. Potential clients will use that higher priced class as a reference point and believe that they are getting a great deal on the regular priced class/session you're offering. Anchoring is a good strategy to use if you offer many different classes or sessions and you want to boost enrollment in a specific one.
Clients like to believe that they are getting a good deal on a product or a service. You want your classes and activities to be attractively priced without compromising the perception of superior value. The High-Low pricing tactic is when you price your activity at a higher price and then discount it so the sale price is at an amount that you want to see it at. For example, instead of session for 250$ you would price it at 300$ and offer a 50$ discount. The sale price is the same but with high-low pricing, the consumer believes they're getting a great deal and will be more willing to buy.
This tactic is great for swim sessions and swim camps. Instead of presenting the cost as a whole, reframe it in terms of monthly or weekly segments. Clients are more willing to register for an activity that costs 150$/month than a 3 month session that costs 450$. You can create a recurring or pro-rated payment plan to make the payments easy and painless and increase enrollment.
The words you use (and don't use) have a significant impact on how potential clients view your prices and the value of your class or session. Instead fs charging an "additional 10$ fee" for an added service, present it as "a small 10$ to maintain ____". By doing this, you're downplaying the cost while emphasizing the benefit of the added service.
This is a tactic that's been around forever and there's a reason for it: it works! Prices that end in even numbers (specifically 0) appear to be significantly more expensive then prices ending in odd numbers (sepcifically 9). While pricing an activity at 99$ may cost you a dollar in revenue, it significantly reduces buyer hesitation such that you are likely to sell more and see an overall increase in profit.
If you liked this article, check out these pricing tips from Lynn Ledford of Cal Elite kids!