Q: We are planning to include morning and afternoon snacks and lunch in the price of our public classes and need to increase our prices. Two questions:
1.What is LERN’s position on including food in public workshops?
2.When increasing prices, are there guidelines for communicating price increases?
Thank you!
A: Food, facts, and fun. These are the three criteria for successful workshops and events. Including food is often an incentive and it gives people the sense that they have gotten their money's worth. LERN supports the idea of including food as part of a learning event when it is possible to do so.
There are strategies for increasing prices. Generally, LERN recommends not increasing prices more than 10%. A price increase at this level is generally not sufficient to deter enrollments. Additionally, recommends that price increases not take you over a price break. For example, if you have a course that is priced at $45, and increase the price to $49, you are still under the price break of $50. This level of increase will not attract much notice. If you have a course that is priced at $49, you should consider whether going over the price break of $50 will make the course seem a lot more expensive. If you do increase the price, keep it under the next price break of price below the next price break of $60. You can price at $54 or $59, and both these prices will be perceived about equally.
As far as announcing price increases, we do not recommend that you draw attention to them. It is probably better to make small increases and be prepared to explain them if asked than to make a general announcement that your prices are going up.