Knowing how to price your yoga retreat correctly requires you to think differently to when you first start putting your retreat together. When planning your yoga retreat in the early days, you’ll probably be focused on the type of vibe you want the experience to embody and how you can benefit your students, but when it comes to making the yoga retreat financially viable and putting money in the bank, you need to think like a business person.
This is especially true when it comes to figuring out your yoga retreat expenses and finalizing the retreat price to charge your students.
Don’t know where to begin? No worries. Take a deep breath and follow the steps below to price your own yoga retreat like a pro.
Add up all the yoga retreat’s variable and fixed costs
First off, you need to figure out how much the yoga retreat is going to cost to run. Begin by adding up all your costs – and when we say everything, we mean everything. Anything you forget to include in these initial costs will end up being paid for out of your own pocket. If you’re not sure about the price of something, err on the side of safety and overestimate.
Keep in mind the big ticket items like accommodation, transportation, meals, your travel costs and yoga space, as well as smaller expenses that add up, such as yoga props, outings, welcome gifts, marketing materials and unexpected expenses.
What you want is to figure out the cost per person. In order to help you figure this out, you need to look at two types of cost: variable and fixed.
A variable cost means that the price per person goes down depending on the number of participants. For example, if you rent a 12-person van for a flat rate of $100, the price per person will go down significantly if you can fill the van with ten participants instead of six.
On the other hand, a fixed cost means that the price per person is not affected by the number of participants. For instance, suppose you bring your students to a restaurant and the meal is $20 a head. Whether your group is two or ten people, the cost per person remains the same.
For the variable costs, figure out what it would cost you for the minimum number of retreat participants necessary to pull off the trip, and up to the maximum cost. (We suggest people meet a minimum of six people and maximum of 14 people.)
Figure out how much you’d like to profit
To price your yoga retreat, you need to have a clear idea of how much the retreat is going to cost to run as well as how much you want to profit from it. Factor in your time, airfare and expenses, and then give yourself a minimum and maximum profit margin.
Next figure out:
- How many retreat participants do you need to break even?
- How many retreat participants do you need to reach your minimum profit?
- And how many do you need for peak profit?
Price your yoga retreat using this formula
The final step, setting the actual retail price of your yoga retreat, is a matter of filling in the blanks.
Use the formula:
Income – Expenditure = Profit
If you know how much the yoga retreat will cost per person and how much you’d like to make, fill those numbers into ‘expenditure’ and ‘profit’ in the above formula. Then figure out how much ‘income’ (the yoga retreat price) you would need to generate to reach your profit goal.
For example, if the total yoga retreat costs per person come to $1,000 and you’d like to make $500 profit per person, you’ll need to charge at least $1,500 per person to join the trip.
Play with the numbers until you come up with a yoga retreat price that you think your yoga students will be comfortable with and that still covers your costs and makes the effort worth your time.
Want more retreat hosting tips to help make your next yoga retreat a success? Check out our 7-part video series on How To Lead A Yoga Retreat!