Make Dynamic Pricing Work for Your Class-based Business

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You’ve probably heard of dynamic pricing before. Airlines use it, rideshare apps live by it, and even your local cinema may change prices depending on the time of day. But what does dynamic pricing look like in a class-based business like yours?

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The most common misconception is that dynamic pricing is just a way to squeeze every last dollar from your customers. But that’s not the goal here. In reality, dynamic pricing is about using your pricing model more strategically. It’s about adjusting your rates to better reflect demand, improve access, and increase enrolments without undermining trust or fairness.

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Here’s how it works, when to use it, and why it might be the strategic lever your business has been missing.

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What Is Dynamic Pricing?

Dynamic pricing involves varying the price of your product or service at different times, for different customers, or in response to changing market conditions. It's a way for your business to maximise potential profitability and stay competitive in a fast-moving market.

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Dynamic pricing sounds fancy (and a little scary) but don’t worry, it doesn’t mean your classes suddenly cost more every time someone refreshes the page. You’re not running a rideshare app. No one’s surge-charging their way into toddler ballet.

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Instead, dynamic pricing means you have the power to adjust prices based on real-life trends, like demand, time of day, or how many spots are left. Nothing changes automatically. You're the boss of the price tag.

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Think of it like this:

• Got a half-empty 8am yoga class? Offer a cheeky discount to lure in the early birds who love a quiet room (and a bargain).
• Got a Saturday tennis class bursting at the seams? That’s premium real estate, charge accordingly and throw in some extra value, like smaller groups or longer sessions.
• Want to fill those awkward midweek times? Try early bird rates, group discounts, or last-minute specials.

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Dynamic pricing helps you:

• Fill more spots
• Maximise revenue
• Offer flexible, fair pricing that still feels good to families

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So no, your prices won’t randomly spike mid-scroll. You set the strategy, tweak it when needed, and watch your schedule (and revenue) work smarter, not harder. Done right, dynamic pricing helps you fill more spots, increase revenue, and offer fair value to families. It gives you the ability to grow sustainably, avoid empty class spots, and reduce revenue leakage. All without compromising the experience you deliver.

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When Dynamic Pricing Makes Sense

Not every class-based business should implement dynamic pricing immediately. You need three foundational elements in place first: consistent demand patterns, clear capacity constraints, and reliable systems for managing different pricing tiers.

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If you're struggling to fill regular classes at standard rates, dynamic pricing won't solve your fundamental demand problem. But if you're regularly turning people away from popular sessions while other time slots sit empty, you have the perfect conditions for strategic pricing adjustments.

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The sweet spot for dynamic pricing in class-based businesses typically involves:

Why Consider Dynamic Pricing?

Dynamic pricing typically results in a 15-20% increase in revenue and up to 40% increase in first-time visitors.

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1. Maximise Class Capacity
Got a Monday 3:30pm class that’s always full and a Thursday 5pm one that struggles? Dynamic pricing lets you nudge behaviour, offering discounts for under-filled classes and adjusting peak pricing where demand is high.

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2. Reward Early Commitment
Encourage families to book in advance with early bird offers or term discounts. You lock in enrolments early, and they get a better deal. Win-win.

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3. Reduce Last-Minute Stress
Struggling to fill spots just before term starts? Instead of panicking, use dynamic pricing to drop the cost slightly and get those final enrolments over the line.

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4. Offer More Choice (Without Undervaluing Yourself)
Families love choice. Dynamic pricing lets you offer flexibility (like off-peak options or sibling discounts) without having to run constant promos.

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How to Introduce Dynamic Pricing Without Confusion

Let’s be honest: no one wants to feel like they’re getting a worse deal than someone else. The key is clarity and fairness.

Here’s how to do it right:

• Set clear rules. Let customers know when prices change and why (e.g. early bird ends on this date, off-peak applies before 3pm).
• Be transparent. Show the original price and the discounted one so families understand the value.
• Keep it consistent. Don’t discount randomly. Tie price changes to specific triggers like class size or booking dates.
• Use automation. With the right tools, dynamic pricing doesn’t need to be manual. Platforms like Udio allow you to build rules in, so the system handles it for you.

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Bonus: Get the right tools

Dynamic pricing requires more sophisticated systems than fixed pricing. You need booking software that can handle multiple pricing tiers. Did you know that Udio offers dyanamic pricing? 

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Final Thoughts

Dynamic pricing is all about using data to offer the right price to the right person at the right time. Not about being pushy or a quick fix for profitability challenges. It's a sustainable strategy for maximising the value exchange between your business and your customers. Keep in mind that your pricing strategy should be something you can explain clearly to any customer who asks. If you can't justify the price difference with genuine value differences, you're probably overcomplicating things. Start simple. Test carefully. Adjust based on real customer feedback rather than assumptions.

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If you’re looking to fill more classes, boost revenue and give families more flexible options (without needing to slash prices) it might be time to explore dynamic pricing. Get in contact and we're happy to run you through.

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