How Do Dance Studios Make Money?

Dance studios have a wide range of income-generating sources. The typical studio offers a variety of dance instruction options for different dance styles, ages and skill levels. Many studios also prepare students for dance recitals and competitions and some even conduct elaborate on-site performances. Other facilities rent their space during slow times, or partner with recreation centers, clubs and youth groups for various events and activities.

Most dance studios get a large chunk of revenue by offering dance classes in a group format. These classes range from jazz and hip-hop to classic ballet, tap and contemporary styles. Studios usually charge students per class, or for a package of classes. Prices vary based on experience levels, the length of classes and the size of instructional groups.

Dance studios earn additional income through private instruction. Individual dance classes are usually more involved, and therefore more expensive, than group lessons. Specialty lessons might include ballroom dancing instruction in preparation for a wedding, adult fitness classes or senior movement sessions. Studios might charge for dance competition preparation or extra studio practice time as well.

Many dance studios increase earnings by renting studio space to different groups for different purposes. The studio may be rented to performing arts groups, school clubs, exercise instructors or for private parties. Specialized dance-themed parties can also serve as a revenue generator. The studio not only earns money by renting space for such events. It also gets a chance to promote its services to party attendees who might not have previously been familiar with the studio or its offerings.

Dance studios often find additional revenue streams in the form of selling dance clothing and accessories. A dance studio that buys wholesale from a dancewear supplier can earn additional revenue selling retail-priced leotards, practice tights, shoes, makeup and hair accessories. Other dance-themed merchandise that sells well in dance studios includes everyday items emblazoned with the "I love dance" motto.

Many studios sell some kind of food and beverages to earn extra money, ranging from vending machines to full-blown concession stands and snack bars. Hungry and thirsty students are likely to be customers, as are parents waiting for children to be finished with dance classes. Even simple bottled water sales can help boost a dance studio's top line.