To welcome more people, Hot Yoga Factory owner Terri Fry knew she had to use every tool available to her—including the dynamic pricing feature from MINDBODY. Dynamic pricing helps you turn unused space in your classes into customers, growing revenue and clientele along the way.
“I look at dynamic pricing like this: I’m not always at capacity at my studio,” Terri said. “If I can get more people in, why wouldn’t I?”
Terri looks at students who buy classes through dynamic pricing as an opportunity for her business—even if they only come on occasion.
“Why would I exclude them if this is how they choose to take care of themselves and be well? Why would I make it harder for them to be part of my community?” Terri asked.
Terri felt she could nurture dynamic pricing drop-ins to grow into studio members with a small tweak in her pricing strategy. With dynamic pricing, Terri can give new customers the option to drop-in at a reduced price when the studio has room for more students. If they make it a habit, Terri offers them a limited membership as a better value.
Proof of the strategy paying off came this fall when a woman who had previously taken advantage of a 30-day intro offer, but did not continue with a membership, came back through Terri’s door—this time because of dynamic pricing.
The customer used dynamic pricing three additional times before Terri suggested the purchase of a limited membership, which includes six classes each month. Over time, the mini-membership would carry more value than repeat drop-ins.
The customer said “yes” to the limited membership and a long-term relationship was born, growing Terri’s repeat customer base (and recurring revenue).
“I think dynamic pricing helps bring in a more cost-conscious consumer,” Terri said. “My hope is that when people come from dynamic pricing, maybe they will move to a membership or a 10-class card.”
When paired with an effective acquisition strategy, dynamic pricing is a powerful growth tool. Dynamic pricing gets customers in the door and keeps them coming back, giving business owners the opportunity to offer better value with a long-term contract.