| When most instructors decide to open a martial | | | | choose how much you should charge, but you |
| arts business they have no idea of what they | | | | first need to decide how much is it that you want |
| should charge in order to run a successful school, | | | | to make from your Martial Arts business? - and |
| stay in business and make a profit. | | | | you can do this by using a simple formula: |
| Most instructors will do their calculations in reverse. | | | | 1. Calculate what your monthly expenses will be. |
| They will start with what they think they CAN | | | | Make sure you include ALL expenses, rent, cams, |
| charge rather than what they actually need or | | | | utilities, insurance, maintenance, staff wage, etc |
| prefer to charge. | | | | 2. Calculate what your personal expenses are |
| After studying over 1000 school owners, some of | | | | right now: Mortgage, rent, utilities, vehicles, |
| them multimillionaires I will uncover the formula for | | | | insurance, savings |
| exactly what you need to charge to run and | | | | 3. Decide how much money you need each |
| maintain a highly successful and profitable martial | | | | month to enjoy the lifestyle you really want. |
| arts business. | | | | Add the three numbers together. It this point you |
| Sadly, when deciding what to charge most | | | | should have come up with a number that will |
| instructors will actually look towards some of their | | | | probably be in the $10,000 range or more! The |
| competitors and base their decision on what they | | | | average Karate school in the United States has |
| are charging (and normally decide on charging a | | | | less than 100 students in it. But I know that you |
| little less!) | | | | are going to be above average, right? So lets say |
| Price is actually one of the worst ways in which | | | | you will have 100 students in your program. You |
| to determine the sale of your programs in fact, | | | | simply then divide your monthly total by the |
| for that matter in almost any business. Price is | | | | number of students you think you will have for |
| only a concern until real value is established. | | | | example: |
| So how do we establish real value within our | | | | Total monthly budget needed to cover costs and |
| martial arts business? First of all it's making it look | | | | my lifestyle : $15,000 |
| smart, clean and professional. Next it's ensuring | | | | Divided by 100 students: $15,000 / 100 = $150.00 |
| that everyone is treated appropriately when they | | | | per month. |
| walk in or make that initial enquiry over the | | | | Just for your reference the most successful |
| telephone, another words being professionally | | | | instructors or Rich instructors as I like to call them |
| trained and schooled in the business. So how does | | | | charge between $150 and $200 a month for |
| this all work towards uncovering what you should | | | | tuitionin their schools. |
| actually charge for your programs? | | | | Good luck in making some more informed |
| Once you have established that you are going to | | | | decisions about what to charge for your martial |
| run a professional school the next step is to | | | | arts tuition. |