How to Price a Retreat: Key Considerations for Yoga & Wellness Leaders

Hi friend, this week we are talking about how to price a retreat.

You might have a retreat plan in the future but be unsure of how to price it for optimal profit. Today, I would like to dive a little deeper into the details about how to price your retreat in a simple way, so that you can understand how it works.

Ready? Let’s go for it.

(You can also listen to this post instead of reading at ZenPreneur)

How to Price a Retreat: Initial Considerations

Before diving into pricing strategies, it’s crucial to understand the costs associated with organizing a retreat. From hotel rooms to meals, activities, and presents, there are various expenses to account for, along with factoring in your own profit as the retreat leader.

A retreat, if priced for optimal profit, is generally a high-ticket program.

Let’s face it: Preparing a retreat takes months. If we just look at the amount of time and work that it takes to find the venue, negotiate pricing, prepare the experience, develop the marketing material, take care of bookings, logistics, legalities, etc., the amount of time it takes is immense.

You can always opt for offering a cheap, low-quality experience to your retreat attendees, one that won’t allow you to make any profit…good luck with that! -I am being ironic here! I want to make it clear that I would never recommend you to do this! 😉

My suggestion is always to aim for providing a premium experience and to price your retreat accordingly.

Two Ways of Creating and Selling a Retreat

In my experience, there are two ways of creating and selling a retreat. The first option involves you, as the retreat leader, selling the whole retreat package, including accommodation, meals, activities, treatments, and airport transfers. This method simplifies payment for clients but requires careful financial management on your end.

The second option is to sell just the retreat experience itself, excluding accommodation, meals, transfers, etc., leaving participants to arrange these separately. Both options have their pros and cons. While I always go (and recommend retreat leaders to go) for the first option, I’ll delve into these in detail.

Option 1: Selling the Whole Retreat Package

Pros: Easier payment process for clients; potential for negotiating better prices with venues.

Cons: Venues prefer direct payment from the retreat leader; compliance with seller of travel laws required.

Option 2: Selling the Retreat Experience Only

Pros: Less administrative work; venues may assist with marketing.

Cons: Clients may find the payment process complicated; increased organizational burden on participants.



How to Price a Retreat: Understanding the Costs Involved

It is important that you understand this: In order not to lose money, you need to cover the costs of your retreat and pay yourself for the work that you have done.

Some costs are going to be fixed (per head) and some variable (per group). Within that, it is advised to calculate the variable costs depending on the minimum number of participants you are estimating – realistically.

Retreat Fixed Costs examples:

  • Room
  • Food
  • Individual transfers

Retreat Variable Costs examples:

  • Group activities
  • Group transfers
  • Website costs

Other Fix & Variable Costs that must be considered when pricing your retreat:

  • Will you include marketing costs in the total price?
  • Do you plan to hire an assistant?
  • Are you considering a commission-based venture for selling your retreat?

These are essential aspects to ponder when determining your retreat’s pricing structure. To ensure you don’t incur losses, it’s essential to cover the retreat’s fixed costs per head, as well as variable costs based on the estimated minimum number of participants. Calculating variable costs based on realistic minimum participant numbers is advised to maintain profitability.

Last but not least, be aware that each payment will incur additional costs, such as currency conversion and transaction fees. Therefore, I recommend adding a percentage to cover these transaction costs for each payment. Additionally, include a small percentage (5 to 10%) of the total cost to account for any last-minute or unforeseen expenses.

How To Price a Retreat: Conclusions & Equation with Example

In conclusion, pricing a retreat involves a careful balance of understanding the costs involved (including your teaching and admin work), both fixed and variable, and considering additional factors such as marketing expenses and hiring assistance. By carefully considering these factors, you can ensure that your retreat is priced effectively to generate optimal profit while providing a valuable experience for your attendees.

Check Out This Equation

Retreat Price Per Person (PP) = (Fixed Costs PP + (Total Variable Costs / Minimum Number of Participants) + Retreat Leader Profit Per Person


via GIPHY


Explanation

  1. Fixed Costs PP (Per Person): These are the costs that are fixed per participant, such as accommodation and meals.
  2. Total Variable Costs: These are costs that vary based on the group, such as group activities and transfers. You need to divide the total variable costs by the minimum number of participants to get the variable cost per person.
  3. Retreat Leader Profit Per Person: This is your desired profit margin per participant.

Detailed Breakdown

  • Fixed Costs PP: The cost of accommodation, meals, and other per-participant fixed expenses.
  • Total Variable Costs: Total costs for group activities, transfers, etc.
  • Minimum Number of Participants: The smallest number of participants you need to make the retreat financially viable.
  • Retreat Leader Profit Per Person: The amount of profit you wish to make per participant.

Example Calculation

Let’s put some hypothetical numbers into the equation to see how it works:

  • Fixed Costs PP: $500 (e.g., accommodation and meals per person)
  • Total Variable Costs: $2,000 (e.g., total cost for group activities, transfers)
  • Minimum Number of Participants: 10
  • Retreat Leader Profit Per Person: $200

Using the revised equation: Retreat Price Per Person (PP) = ($500 + ($2,000 / 10)) + $200

1. Retreat Price Per Person (PP) = ($500 + $200) + $200

2. Retreat Price Per Person (PP) = $700 + $200

3. Retreat Price Per Person (PP) = $900

So, in this example, you would charge each participant $900 to cover all costs and ensure your desired profit margin.

This refined equation ensures you cover all costs and achieve your desired profit margin accurately.

I hope this post helps you navigate the process of pricing your retreat effectively. If you have any further questions or need additional guidance, feel free to reach out. Best of luck with your retreat planning journey!

Manu.


Hey, If you’re serious about making your retreat dream a reality, join my free webinar How to Successfully Lead an International Retreat

If you are looking for the best support in your retreat leader journey, I have a 12-months long program for retreat leaders and aspiring ones. I would love for you to be part of it. If you would like to learn more about it, please check the link below with all the info.

[Check Out My Program Details and Enrollment]


¡Hola! I’m Manu.

I’m on a mission to help yoga and wellness professionals like YOU elevate their marketing & biz game, so they can navigate the industry fearlessly and achieve sustained growth. Having said that, I don’t like to use manipulative or coercive techniques.

You can learn about my story here.

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