What to charge new clients?

[Suzanne]

Hi,
I am beginning to get interest from people about wanting private yoga instruction. I want to offer them something affordable, but also want to make it worth my time/effort. What I offer now is a package that includes 1 hour initial consultation plus 8 1-hour sessions, all for $500.00. I live in an area that is growing but the average person does not have lots of money to spend on private instruction. Is it acceptable to work on a sliding scale? If I quote them the package fee and they respond by saying that can't afford it, would I seem wishy-washy by saying "let's try to work something out that's acceptable for you"? In other words, if I drop my fee right away, it may seem like I didn't need to charge that much in the first place. Any advice out there?
Thanks,
Suzanne

[Christine]

Suzanne,

People have money to spend on things that are a priority to them. I have a sister who cries on my shoulder ad nauseum because she's so poor and can't afford a better apartment, new furniture, a new car, etc... but she smokes like a chiminey and has her laundry sent out because she's just too busy to do it herself.

Decide what you are worth... then add a few bucks to that because I bet you're too low. If you want to donate your services, that is very noble. Give a free class in a women's shelter or at a hospital for cancer survivors.

But most people can afford what they value.

So the bigger question is: How do you get them to value what they may not even know exists?

[Administrator]

Today I had a massage from someone who - at the end of the session - said the following:

My normal rate is $100 an hour but since this is your first session, I offer a discount. And I'll discount my rates further if you become a regular client.

My response was to write them a check for $150 plus a $25 tip and told them to work on their mindset.

Get it?

Charge what you feel you are worth.

If you believe you have something to offer, charge for it.

Today, someone wanted to hire me for a job.

Sandra my assistant told him my fee was $10,000 for the job. Paid in advance.

He said, "I never wrote a check to anyone for $10,000 before."

Sandra said, "You must have got him on a good day. Usually, it's more."

We didn't bargain.

We didn't offer to take 50% down.

We told him our price and conditions.

That's what you guys should do.

Sara, if you read this. Don't even think of charging 10K for a yoga session.

PS. Added later.... he overnighted a check to our offices for payment in full.

[Suzanne]

Thanks for the replies and the encouragement! I was having a feeling-less-than-confident day today and had to call someone who responded to my ad to discuss fees, so I read your posts first and they gave me the confidence to state my fees without being wishy-washy. You're right, Harlan. It IS a mindset. Interesting, today I drove a few miles out of town and cruised around an area that is a gated community with a golf course and million-dollar homes. I picked up their list of social amenities they offer (for a fee), which included exercise classes, art classes, karate, cooking, and noticed that yoga was NOT included. Hmmm, I've found my next business project.