Setting prices
How to Price a Session Package, Not Guess It
Know what each session really costs you, and base the package discount on what prepayment saves you, not a number that just sounds good.
You're putting together a 5-session package. The single-session price is easy, $40, so you multiply by five: $200. Now you need to add a discount, because nobody buys a package with no discount at all. How much do you take off? Most people land on 20% because it sounds right, or 25% because it's a rounder number on the calculator.
That number doesn't come from anywhere real, it comes from what looks good on the sign, not from what's left in your pocket after you deliver the session. The problem isn't offering a discount. It's offering one without knowing what each session actually costs you. Without that number, today's 20% might be a good deal, or it might mean you're working the fifth session for almost nothing without realizing it.
It's Your Margin That Gets Discounted, Not the Price
The single-session price, that $40, isn't what you earn, it's what you charge. What you earn is the price minus what it costs you to deliver the session: your time, the materials you use, and if you pay by the hour, the rent on the space. Let's say that math comes out to $15 in cost per session. Your real margin, what actually lands in your pocket, is $25 per session.
That margin is what the package discount eats into, and it eats into it faster than it looks. If you discount 20% off the price, you're not cutting 20% off your profit, you're cutting $8 out of a $25 profit, almost a third of your real margin on that session. A discount always hits your margin harder than it hits your sale price, and the tighter your margin, the sooner you feel it.
The Right Test: What Prepayment Saves You, Not What Sounds Good
The package discount shouldn't come from a round number. It should come from what you save when a client pays for all five sessions upfront instead of one at a time.
That savings is real, and you can put a number on it. A client who pays session by session might not come back after the second visit, and that gap in your schedule has to be filled with another booking or left empty. A client with a prepaid package comes back because the money is already committed, you don't have to chase them down, you don't have to charge them again at every visit, and you know weeks ahead of time how many hours of your schedule are already booked. That's worth something, but it's not worth the same amount to every business.
If your usual problem is that people try one session and don't come back, that savings is high and can justify a bigger discount. If your clients already come back on their own, the package mainly gives you easier billing, and there a small discount, 5% or 10%, already rewards the prepayment without giving away margin you don't need to give away. The question that sets the number isn't "what sounds good," it's "how much do I save if five sessions get paid at once instead of five separate times."
- The same percentage whether the package is three sessions or ten
- Easy to calculate and easy to explain on your price list
- Doesn't reward the extra commitment from someone buying more sessions at once
- The 10-session package has a better price per session than the 3-session one
- The volume makes up for the margin you give up on each session
- Means keeping track of a different price for every package size
Which one to pick: If you only sell one package size, a flat discount is enough and keeps things simple. If you sell several sizes, scale the discount up with size: someone buying ten sessions locks in ten weeks of your schedule, and that commitment is worth more margin than someone buying three.
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- You know what each session actually costs you, not just what you charge for it
- The package discount comes from what prepayment saves you, not a round number
- You've decided whether the discount is the same for every package or grows with size
- You have the exact package wording ready for your price list, with the per-session price front and center
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