Episode 3: What should I charge, and what should I pay my teachers?

Tania Huddart: Most people choose a price by looking at the studio down the road. I'd ask you to start somewhere else. Start with your rent. Start with what it costs to keep the lights on, and what you need to live. Then work backwards. Your price has to cover your costs, support your life, and reflect the value you give.

Host: Welcome to Build Confidence and Purpose with Pilates. I'm here with Tania Huddart: Pilates teacher, teacher trainer and author of Pilates & Purpose. Both voices you'll hear are made with AI. Every word Tania says is her own, and she's approved each one.

Last episode was the setup: the paperwork, the insurance, the systems and the plan. Today it's the question a lot of people find awkward. What should I charge, and what should I pay my teachers?

Tania Huddart: It is awkward. And it's one of the most important decisions you'll make.

Host: Why does it feel so hard?

Tania Huddart: I think because most of us came into Pilates to help people. Talking about money can feel like it's at odds with that. It isn't. I said this last time and I'll keep saying it. There's nothing wrong with Pilates teachers making money.

Running a studio is about more than money. Of course it is. But if the studio doesn't stay profitable, it doesn't stay open. And then nobody gets helped. So the price is not the enemy of the heart. The price is what keeps the heart beating.

Real success is when the money and your values line up. In a studio, that looks like a few simple things. Paying your teachers fairly. Keeping classes within reach. Being open about your prices. And caring more about the quality of the teaching than the number of classes.

Host: So where do most people go wrong?

Tania Huddart: They guess. Or they copy. They look at what someone else charges, take a little off, and hope. And hope doesn't pay the rent. The other way is slower, but it's honest. You start with what the studio actually needs, and you work backwards to the price.

Host: Walk me through that. Where do you start?

Tania Huddart: You start by writing down every cost. Every one. And be honest and thorough, because the ones you forget don't go away.

Some costs stay about the same each month. Rent. Insurance. Your teachers' wages. Any loan repayments. Others go up and down. Fixing or buying equipment. Cleaning and laundry. Marketing. Your own training. Your booking software and the other tools you use.

And then two lines people leave off. The first is your own pay. What you need to live on. The second is money for tax and savings. Those aren't extras. They're costs, the same as the rent.

In the example in the book, that comes to about twelve thousand three hundred dollars a month. Your number will be different. That's fine. It's the method that matters.

Host: And then?

Tania Huddart: Then you're realistic about how much you can run. Not the timetable you'd run if you never got tired. The one you can keep up, week after week. In the example, that's forty group classes a month. So ten a week. Plus twenty private sessions and two workshops.

Next, you decide how much of your income comes from each. In the example, about half comes from group classes. Half of twelve thousand three hundred is about six thousand one hundred and fifty.

Now divide that by forty classes. Each class needs to bring in about a hundred and fifty-four dollars. If seven people come to an average class, that's about twenty-two dollars each. Then you round up, to leave yourself a little room. So twenty-five dollars a class, or a package of classes for a bit less each.

Workshops work the same way. In the example, two workshops need to bring in about nine hundred and twenty dollars each. With fifteen people, that's about sixty-two dollars a person.

Host: That's a very different feeling from guessing.

Tania Huddart: It is. Because now you know why the price is the price. And if someone asks, you can say so without flinching. You can also see what would have to change if the price feels wrong. That's a very different place to stand.

Host: What if the number that comes out is higher than anyone near you charges?

Tania Huddart: Then the numbers are telling you something. Listen to them.

In the same example, the private sessions need to bring in about two hundred and fifteen dollars each. But private sessions nearby cost about a hundred to a hundred and twenty. Nobody's paying two hundred and fifteen. So you've got choices. You could run more privates. You could get more people into your group classes. Or you could take a slightly smaller salary while you build. What you don't do is pretend the gap isn't there.

Host: So the price isn't the only thing you can change.

Tania Huddart: No. And often it isn't the best one to change. Sometimes the answer is a bigger class, or packages, or a membership. That can work better than raising the price.

So once you have a number, check it. Does it reflect what you offer? Your training, your equipment, how people feel in your studio. Is it realistic where you live? Look at what others charge. And does it support you as well as the business? If it only works when you never take a day off, it doesn't work.

The template at the back of the book makes this simpler still. You take your income goal, and divide it by the number of client spots you have in a month. That's the least you can charge per person per class.

The book's example there is an income goal of eight thousand dollars a month. Twelve classes a week, so forty-eight a month. Six people in an average class. That's two hundred and eighty-eight spots. Eight thousand divided by two hundred and eighty-eight is about twenty-seven seventy-five. So you'd round up, to twenty-eight or thirty dollars a class.

Host: Let's talk about the teachers. What's a fair share?

Tania Huddart: The most common split I'd suggest is forty to fifty per cent of the class income going to the teacher. The rest covers the studio's costs and your own pay.

So in our example, a class of seven at twenty-five dollars brings in a hundred and seventy-five. The teacher would get somewhere between seventy and about eighty-eight dollars for that class.

Host: How do you know what's normal where you are?

Tania Huddart: Ask around, and look. Find out what teachers near you are being paid. It changes with a few things. How much training someone has. A teacher trained on all the equipment usually earns more than one trained only on the mat. How many years they've been teaching. And what they're teaching. Private sessions usually pay more than group classes.

Host: Is a percentage the only way to do it?

Tania Huddart: No. There are three common ways. The first is a flat rate per class. It's simple, and everyone knows where they stand. The second is a percentage, like the one I just described. That works well when class sizes go up and down. But it needs a very clear agreement. If you pay a percentage, write the percentage down. Then write down the least a teacher will be paid for a class, even a small one. And the third is a tiered system. Senior teachers, or teachers running specialist programmes, get a higher rate. That rewards experience, and it gives people something to grow into.

Whichever you choose, it has to fit inside your numbers. If your teachers' pay is running higher than your plan allows, you have the same three levers as before. Raise prices. Fill classes. Or cut other costs.

Host: I'm going to ask the owner's question. Isn't it better for the business to pay teachers as little as you can?

Tania Huddart: It looks better on paper for about a month.

Your teachers are one of the best things your studio has. Paying them fairly does cost more. But it builds loyalty, and loyal teachers stay. Every time a good teacher leaves, you start again. Finding someone, training them, and your clients getting used to someone new. That costs far more than a fair wage.

Some owners pay a little above the going rate. Or they add things that aren't money. Free classes. Help with training costs. Flexible hours. Those things tell a teacher they matter. And it's usually cheaper than recruiting over and over.

Host: And talking about pay with your teachers? That's awkward too.

Tania Huddart: So be open about it from the very first conversation. How pay works. When it gets reviewed. How someone can move up. And the questions that cause trouble later. If the studio cancels a class, does the teacher still get paid? If a client cancels a private at the last minute, what happens then? Write it down before it comes up. When people understand it, they trust it. And they feel part of what you're building, not just someone you pay.

Host: Can you charge properly and still keep Pilates within reach for people?

Tania Huddart: Yes. This is where your values come in.

Your price should reflect the quality of what you give. But you can also offer different levels of membership. Or packages. Or an occasional community class at a lower price. Those keep the door open for people who couldn't otherwise come. And be open about how your prices work. People trust what they understand. Clients and teachers notice when you stick to your principles. They also notice when you cut corners.

And when money is tight, go back to your mission. Use it as a filter. Does this decision fit why I started? That's not soft. That's a very practical question when you're tempted to cut a corner.

Host: And the owner herself. Where does she fit in all this?

Tania Huddart: She gets paid. Please.

A simple way to think about every dollar that comes in is this. About half covers your costs and your teachers. About a third is your pay. And the rest goes to savings, tax and putting money back into the studio. The template at the back of the book splits that last part in two. Some goes back into the studio, for equipment, training and marketing. And some goes into savings, for an emergency, for growing, or for tax. Adjust it to fit your life, but always leave something for savings. A studio that only just covers the rent has nothing left for a bad month.

Host: How do you know if you've got the balance right?

Tania Huddart: Look at more than the money. Track your income, of course. But also look at whether your clients keep coming back. Whether your teachers are happy and well. Whether you're part of your community. Loyal clients, contented teachers, and the feeling that you're giving something back. Those are a kind of wealth too. If the money's good but your teachers keep leaving, something's out of balance.

Host: So, three things to take away.

Tania Huddart: One. Don't guess your price. Start with what the studio costs, including your own pay, and work backwards.

Two. When the numbers don't add up, believe them. Then change the class sizes, the mix or the packages, not just the price.

Three. Pay your teachers fairly and openly. Forty to fifty per cent of the class income is a good place to start. Good teachers who stay are worth more than any saving.

Host: And one question to sit with?

Tania Huddart: When money gets tight, what guides your decisions? The short-term profit, or the long-term mission? Be honest with yourself about that one.

Host: If you'd like to work out your own class price, step by step, Tania's pricing template is free on her website, taniahuddart.com.

Next episode, we go underneath the numbers. What does my studio stand for, and why would anyone choose it?

Tania, last word?

Tania Huddart: A fair price is not greedy. It's how you keep your doors open, pay your teachers well, and still be there for your clients next year. Know your numbers. Then you can stop apologising for them.