Why underpricing is killing your pilates studio
Let’s talk about something that quietly destroys more Pilates studios than bad marketing, competition down the road, or even quiet class times.
Underpricing.
Not the dramatic, overnight kind.
The slow, subtle, “just £2 cheaper than everyone else” kind.
The kind that feels safe… until one day you realise you’re exhausted, your team is stretched, and your bank balance doesn’t reflect how hard you’re working.
Sound familiar?
Why do studios underprice in the first place?
Rarely because of data. They underprice because of fear. Fear that clients won’t pay more, fear of being undercut by another Reformer Pilates studio, fear of empty reformers, or fear of upsetting existing members.
But here’s the truth: most studios don’t underprice because it’s the right strategy, they underprice because it feels emotionally safer. And emotional pricing decisions are expensive ones.
Small price increases don’t cause mass client churn
One of the most persistent myths in boutique fitness pricing is that even a small price increase will lead to a mass loss of members. In reality, pricing research from subscription-based industries consistently shows that modest, well-communicated price increases tend to result in minimal churn. Analysts found that price sensitivity often follows a non-linear curve, meaning that small price increases (in the 5–10% range) typically produce minimal churn impact, while larger increases create disproportionately higher churn risk.*
Similarly, empirical price elasticity testing in subscription models has shown that a 10% price increase can result in only a fraction of churn directly attributable to the price change, particularly among engaged and loyal customers. These findings suggest that members tend to tolerate small increases when the value is clear and communication is strong.. a pattern that applies to any membership-based business, including Reformer Pilates studios.*
Industry trends support the underpricing concern
You’re not imagining this… the broader boutique fitness industry acknowledges a real pricing trend. Referring back to the Boutique Studio Report 2023, fitness professionals noted that “constant discounting” and a “race to the bottom” risk commoditising the boutique fitness product as operators try to fill classes. *
This trend is occurring in the context of rapid market growth. Boutique fitness studios in the U.S. increased by roughly 31% between 2018 and 2023, showing strong demand but also growing competition for the same clients.*
In such an environment, some studios underprice simply to avoid too much competitive pressure, a trend that feels tactical in the short term but strategically problematic in the long term.
What your pricing says about your studio
Price is one of the strongest signals of quality. When a Reformer Pilates studio prices inconsistently or significantly below its local market, it subtly reshapes how the business is perceived. Lower prices can lead potential clients to question the quality of instruction, equipment, programming, and overall experience, even when the studio itself delivers exceptional teaching.
Rather than being compared to other boutique Reformer Pilates studios, underpriced businesses are often grouped mentally with gyms or general fitness facilities. This makes it far harder to position your studio as a premium, specialist offering, regardless of the actual quality of your service.
Premium clients aren’t looking for the cheapest option, they’re looking for the best option. And when your prices are low, you don’t attract “everyone”.
You attract price-sensitive customers.
reformerpilates.com folding reformer bed in caramel
The problem with price-sensitive clients for your business
Consistently low pricing tends to attract price-sensitive customers. While there is nothing wrong with these clients, they are statistically less loyal and more likely to move on when a cheaper option becomes available. This results in higher membership churn and forces studios into a constant cycle of replacing clients rather than building a stable, committed community.
Which leads to one thing: exhausting, unstable revenue. Studios then respond by running more promotions, more discounts, more offers, further training clients to value price over experience.
The long-term damage to your brand
Underpricing doesn’t just impact short-term revenue. It quietly damages brand perception. It makes future price increases more difficult, weakens premium positioning, and shifts conversations away from value and outcomes towards justification and comparison.
Once a Pilates studio becomes known as “the affordable option,” it can be extremely difficult to reposition without a clear and strategic pricing reset.
Burnout: doing more for less
Let’s talk about the human cost. Studios operating on thin margins often compensate by increasing class volume, tightening schedules, and pushing instructors to do more for less. Studio owners work longer hours, teams feel stretched, and overall energy within the business drops.
You end up working harder for less reward, which is the fastest route to resentment, and eventually, exit.
Eroded profit margins limit growth
The most immediate and damaging impact of underpricing is eroded profit margins. Lower margins leave insufficient capital to reinvest in essential areas of the business such as marketing, staff training, systems, equipment upgrades, research, and long-term growth initiatives.
Without healthy margins, studios operate in survival mode, not strategy mode. Revenue might look good on paper. But profit tells the real story.
And here’s the line every studio owner needs to remember:
Solely chasing revenue (“bums on beds”) is for vanity.
Realising profit is for sanity.
Understanding the price you need to charge
Every Reformer Pilates studio has a price point it needs to charge to remain viable. Not the price that feels comfortable, and not the price that avoids difficult conversations, but the price that covers operating costs, pays instructors fairly, compensates the owner appropriately, and delivers a healthy profit at the end of the year.
If you don’t know that number, you’re guessing. And guessing is NOT a pricing strategy.
Already set your prices and scared to change them?
Many studio owners know they are underpriced but feel stuck. Legacy members, fear of backlash, “we’ve always charged this” thinking, and anxiety around losing clients often prevent necessary pricing changes.
However, price adjustments do not need to be dramatic to be effective. Structured pricing strategies such as phased increases, tiered memberships, grandfathering options, and value-led communication can protect client trust while significantly improving studio sustainability.
Where to begin with Reformer Pilates pricing
If you’re unsure what you should be charging, whether your current pricing model is sustainable, or how to increase prices without losing clients, we are here to help.
Get in contact or send us a message and we’ll provide you with a free pricing workbook specifically designed for Reformer Pilates and boutique fitness studios. You can drop in your real numbers to clearly see what you need to charge to cover your costs and return a healthy profit.
Because a sustainable studio isn’t about being the cheapest in town.
It’s about being strong enough to last. And your studio deserves that.
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Author
LAUREN GILES
Driving the brand, growth, and industry impact behind one of the UK’s leading reformer Pilates platforms.
ReformerPilates.com is powering the future of reformer Pilates — helping studios build successful, sustainable, and profitable businesses through premium equipment, business insight, and community-driven events. Through education, collaboration, and innovation, the platform is driving growth and elevating standards across the industry.
