If you are a Yoga Instructor, then you might have dreamt of opening a Yoga Studio someday. If that day has arrived for you, then you might be curious to find out: Are Yoga Studios profitable?
There is an increased demand for yoga around the world, and since a yoga studio can be opened for less investment compared to a gym or other fitness center, it might be a great idea for you to pursue this passion further.
So, how much do you need to open a Yoga Studio, how much can you make, and how do you price your services? Be ready to find answers to all your questions in this guide.
Current Status of the Yoga Industry
Yoga has been an age-old practice in Asian countries and has found a place in people’s hearts around the world now.
There has also been a rise in health awareness among people, and a lot of them are turning to yoga in spite of so many other forms of exercise that are available.
Currently, the yoga industry is valued at 105.9 billion and is expected to see a remarkable surge with a projected compound annual growth rate (CAGR) of 9% from 2023 to 2028.
So, this might be a good time for you to become a Yoga instructor.
How Much Do I Need To Open a Yoga Studio?
The cost of opening a Yoga Studio is much less than the cost of opening a gym or any other fitness center. This is because you require less equipment and space to get started.
On average, opening a Yoga Studio can cost you $15,000 on the lower end and up to $100,000 on the higher end, with the average being $30,000 for a mid-range, beautiful Studio.
Here’s the start-up cost of opening a Yoga Studio:
|Type of Expense
|$10,000 – $60,000
|Technology & Marketing
|$500 – $2,000
|Licensing and regulations
|$1,500 – $3,500
|$30 – $100 per class
How Much Does a Yoga Studio Owner Make?
The first question anyone interested in opening a Yoga Studio might ask is: How much does a Yoga Studio owner make?
The revenue generated by Yoga Studio is generally $13,495/month. But after deducting major expenses such as yoga teacher salary (27% on average) and rent (15% on average), a Yoga Studio owner gets to keep a gross monthly income of $7,227 or $86,000/year on average.
However, the money that a Yoga Studio owner can make can be more or less than this depending on the size of your Yoga Studio, the total number of students, your working hours, the type of session you offer, etc.
Are Yoga Studios Profitable?
Yoga Studios are definitely profitable. Although the average revenue of a Yoga Studio is $13,495 a month, a lot of them exceed this number and make as much as $60,000 a month in revenue.
Let’s take an example to understand this better. Let’s say there is a Yoga Studio in Los Angeles charging $20 per class. If twenty students attended each class for five days a week, then the Studio would make $2,000 a day in income or $60,000 a month.
Here are some key statistics that will corroborate the above-mentioned point:
- Large Studios in top cities such as LA or NYC make as much as $1,000,000+ in annual revenue.
- Once a Yoga Studio becomes popular, a single room can service 250-500 students per month.
- An average Yoga Studio owner can make six figures by catering to 100-200 students in a month.
So, as you can see, Yoga Studios can be extremely profitable, ho
How To Calculate The Income of a Yoga Studio?
Here’s a great way to calculate the income earned by a Yoga Studio owner:
- Attend a Yoga Class around you and count the total number of students in the class.
- You can also call a Yoga Studio and ask how many students show up each day instead.
- Now multiply the total number of students by the price of the yoga class at that studio. This amount could be between $10-$30 or more, depending on where you live. So, for example, if 30 students show up, then the total revenue would be (30×20 = 600/class.)
- Now, take this number and multiply it by the average number of classes in a day. For example: (600/class X 3 classes = $1,800 per day.)
- There, you have the total revenue earned in a day. Now multiply this by 20 (assuming the studio takes 5 classes a week), and you will have the total monthly revenue of a Yoga Studio. ($1,800×20 = $36,000/month.)
|5 Classes a week
|10 Classes a week
|15 Classes a week
|20 Classes a week
Note: This is just an example to help you understand how you can calculate the income of a Yoga Studio owner in your area.
Factors Affecting the Profitability of Yoga Studios
There are plenty of factors that affect the profitability of Yoga Studios, from your brand value to the total number of students you have and more. Let us explore all the key factors that affect the profitability of Yoga Studios:
1. Number of Students
It is common sense to know that the more students you have, the more profitable your Yoga Studio will be. At the end of each month, you have some key expenses to take care of, such as rent, salaries, etc. So, to cover these expenses, you need a certain number of students to attend your classes.
The fixed costs do not scale as much. So even if you were moving to a bigger studio, your rent would not double, but you would be able to cater to more students in that one session, which would increase your profitability.
So, maximize the number of students you have to maximize profitability.
2. Pricing Structure
Your pricing structure largely determines the money you make from your Yoga Studio.
Value-based pricing structure is the best strategy to play with.
A Value-based pricing structure is the one where you price your services based on the upper limit of what your students can pay.
On the other hand, competitor-based pricing structures or cost-based pricing structures may not be the best way to increase your profitability.
In a competitor-based pricing structure, you charge your prices based on what your competitors are charging. In a cost-based structure, you determine the expenses and add a profit margin.
3. Space Utilization
You might assume that smaller yoga studios might be more profitable because of the rent. But that’s not the case at all.
Large Yoga Studios are usually more profitable because they are able to accommodate more people in a single session, allowing you to make more money for the same number of classes.
So, if you want to make more money from your Yoga studio, then focus on utilizing your space better.
4. Discounting Stratergy
Throwing big discounts will keep your students happy, but it will not help you with earning money. Limit the discounts you offer and use them in the right way to attract high-value students.
Profitable Yoga Studios always keeps its prices high, has a value-based pricing strategy, and offers strategic discounts.
How Much Should You Charge For Yoga Classes?
Pricing your Yoga classes effectively largely determine the money that you are going to make. So make sure you do this strategically. Here’s an idea on how much you can charge for different types of Yoga Classes:
Average Price: $10-$30
This is the most common method in which Yoga Studio owners charge. We recommend you implement value-based charging, as we explained in the above section, to maximize profits.
The average price for this can fluctuate between $10-$30/ class when you are just getting started and can be higher as your brand value increases.
2. Unlimited Monthly Classes
Average Price: $100-$200/month
This method is quite popular among students, as it allows them to take as many classes as they want.
It also benefits the Yoga Studio owner, as they get paid a flat fee irrespective of the number of classes the student attends in a month.
Note that many instructors also call this a monthly membership.
3. Family Packages
Average Price: 1.5X the ‘Unlimited Package’ price
Some students might want to bring their family members or spouse to the sessions. You can offer simpy increase the unlimited package by 1.5X to cater to all of them.
4. Multi-Class Packages
Average price: $100-200/month
This could be an alternative to the “Unlimited Package.” In this studios basically offer 10 Class packs” or “20 Class packs” per month. This allows students to attend the given classes whenever they want.
5. Private Class Packages
Average price: $500/month
Many students ask for private classes, and if you can cater to them or fit them into your schedule, then this could be a great way of making money with less effort. You can charge a flat rate of $500 a month or more, depending on where you live.
6. Corporate Yoga
Average price: $75/hour – 125/hour
Generally, corporate yoga pays a lot. And for this, you can either charge per session or per person. Offices need corporate yoga, and this could ensure a fixed, consistent income for you if the office conducts yoga sessions each month.
Tips to Open a Yoga Studio
How To Increase Revenue For Your Yoga Studio?
To boost revenue of your Yoga Studio, you can offer one or more of these services:
- Yoga Workshops and Retreats
- Online Classes and Subscription Services
- Private Yoga Sessions
- Yoga Teacher Training Programs
- Sell Yoga Wellness Products
- Yoga for Athletes
- Sell Yoga Merchandise
- Launch Yoga Challenges and Programs
- Launch Yoga for Special Populations
- Corporate Yoga Programs
- Conduct Yoga-related Events
- Offer Holistic Health Services
- Yoga App Development
- Share Yoga tips on YouTube
Opening a Yoga Studio Success Story
Yoga Studios can be quite profitable for you if you manage your expenses effectively and price your services strategically.
Having a class size of more than ten students should suffice to allow you to make profits. And remember, having a bigger place, especially if you are a popular instructor, could allow you to make more profits in less time.
We hope you found this guide on “Are Yoga Studios Profitable?” useful.
How can I open a Yoga Studio with no money?
Can you open a Yoga Studio with no money? Yes, you can!
Doing this will not be that easy, and you will have to be patient. Start by building a network among family and friends to find students. You can also showcase your skills and leverage social media channels to find students initially.
Give yoga lessons in parks, gardens, your home, etc., so you do not have to pay rent.
Start saving the money you earn from your session, and once you have $15000 – $30,000, you can rent out a Studio and build a business from there.
What can I sell in a Yoga Studio?
Selling merchandise such as yoga mats, yoga props (straps, blocks), water bottles, yoga pants, yoga tops, etc., can allow you to make more money from your Yoga Studio.
Do Yoga Instructors need insurance?
Yes, Yoga Instructors need insurance before they start teaching. As a Yoga Studio owner, you should buy general liability insurance for yoga teachers working for you.