How Much Should You Charge for a Term of Classes?
Everything you need to know before setting up your new term prices - from why families want the option to book for the term, what you should do in case of missed sessions, pro-rata pricing & more.
What is full term pricing?
For classes that run on a termly basis, many activity organisers offer the option to reserve a spot for whole term This may be used alongside other options, like single sessions, free or paid trials.
Why do families like it?
Being able to reserve a space for every session is great for families who don’t want their little ones to miss out on a favourite activity. For families with younger children, it helps establish a weekly routine, and for older ones, term classes support them as they develop skills that can’t be picked up on an ad hoc single session basis.
Who uses full term pricing?
Most class providers who run in term-time offer a full term price option. It’s particularly useful for organisers who run an activity where children build on skills learned in previous sessions, like drama classes that culminate in an end of term show. Where booking by the term is the only option, it’s common for activity providers to also run free or paid trials so families can get a taster of their class.
How much should you charge for a term of classes?
How much you charge for a term of classes varies a lot depending on the type of class you offer, the age of children attending and where in the country you run activities. We’ve looked at the weekly equivalent prices of class terms, so for example the price per week of a 10 week term that costs £100 is £10 (even if this isn’t offered as a single session). This allowed us to compare terms with different numbers of sessions, so we could provide a more complete set of data.
What kind of activity do you run?
Activities are more expensive for kids’ sports, martial arts, parent and baby fitness and learning, which covers cooking, coding and similar activities. These kinds of activities typically have a higher cost for materials or equipment per child. While it’s good to take into account the relative prices of different categories, you should remember to take into account your costs - if you provide expensive materials, this should be reflected in your price.
However, the kind of activity you run is not the only thing you should look at when deciding what to charge.
Weekly Price of Termly Classes by Category
How much should you charge for children of different ages?
The price of activities trends upward with the age of the children participating, with activities for the under 4s at almost half the price of those for children over 5. This probably reflects how the activities become more complex, requiring (as above!) more expensive equipment and materials, and more specialised teaching.
Weekly Price of Termly Classes by Age Group
Does where you live make a difference?
Short answer: yes! We found that activity prices are more in bigger cities, less in smaller cities and less than that in non-urban areas. We also found that cities with a high cost of living more generally, like London, Brighton and Edinburgh have correspondingly higher prices for children’s activities, while cities where the cost of living is lower, like Sheffield and Liverpool, have lower cost kids’ activities.
You should always take into account the market rate, and what your competitors are charging, when thinking about the prices of your activities.
Weekly Price of Termly Classes by City
Some things to consider:
With pro-rata pricing, families can purchase a term after it’s already started, and will be charged for just the remaining classes. If the type of class you run can support families joining midway, you may want to consider offering pro-rata pricing as a smart way of filling empty spots later in the term.
It’s worth thinking about what you’ll do if a class missed - for example, in the case of illness - as this is a common concern parents have when making the decision to commit to purchasing a full term. Some organisers offer a partial refund for missed sessions, or if your activity runs regularly throughout the week, you may choose to allow the child to attend another session, and some organisers don’t offer anything at all.
Recent research by Hoop suggests that “what happens if I miss a session?” is one of the questions that activity organisers get asked most regularly before booking, so it’s good to be clear on your policy for missed sessions
Full Term Pricing: weighing up the pros & cons
Guaranteed attendance: families are locked into attending lots of sessions.
You get paid a lump sum at the start of term, which helps cash flow.
Some customers, particularly in younger age groups, don’t want to commit to a whole term in case of illness or missing a session.
Limits when people can sign up (especially if you don’t offer pro-rata pricing).