Income from student memberships and classes make up the studio’s primary revenue driver, while workshops and teacher trainings are a secondary stream. The studio's retail shop and studio rentals represent a significant opportunity for additional growth.
The schedule offers over 50 classes weekly, catering to all levels and abilities. Approximately 60% of purchases are made online through the studio’s reservation system. Students are able to purchase classes, workshops, and teacher training directly through the self-service platform.
Relationships with third-party booking platforms such as ClassPass and Zenrez also contribute several hundred students monthly, providing an additional revenue source and exposure for the business.
Red Diamond Yoga offers a variety of pricing options for students to choose from depending on their needs. Students can purchase single classes, class bundles (8, 12, and 16 class packages), monthly memberships (1, 3, 6, and 12 months prepaid), and yearly contracts.
Red Diamond Yoga also offers first-time students 10 consecutive days of unlimited yoga for $10, which brings many new students to the studio. This campaign is being aggressively marketed to convert new students into monthly members.
The retail store within the studio sells yoga apparel, mats, candles, and jewelry. Refreshments such as water, fresh juices and small food items are also available for purchase.
In addition to Arlene and Sheryl, Red Diamond Yoga has approximately 20 instructors and six part-time staff on the team. The studio is also staffed through a community program that allows members to trade-in-kind for class sessions by putting in service hours at Red Diamond. Participants contribute four hours of service at the front desk per week. Approximately 15 members participate in the program at any given time.
Monthly expenses such as rent, utilities, and insurance are relatively fixed, and instructors operate as independent contractors and are paid a flat fee per class. Therefore, additional revenues contribute directly to the business’s bottom line.