| Friend,
I had an interesting discussion with a long-time customer yesterday. He runs a small school that he set up according to the Small Dojo Big Profits way of doing things, and has for some time.
He makes about $50k a year in profit - not a ton of money, but enough to quit his job and pay his bills, and he doesn't really work that hard at it, either.
But here's the interesting part of the story...
Recently, he was approached by a very successful school owner with an offer to come on staff and run one of his dojos. He declined, because at the same time he was presented with an offer to buy a 6,000 square foot dojo for a song.
This place had around 150 students, an after-school camp, and was in a good location, to boot. But guess what?
My customer's SDBP dojo is making about 3-4 times the profit that the 6,000 square foot dojo is making each month. Imagine that.
And the really crazy thing is that the guy running the big dojo is sitting on a gold mine - he just doesn't know it. After five minutes of speaking with my customer about how that large dojo is being run, I was able to point out a half-dozen things that could easily boost their profits.
So why am I telling you this? Because at a certain point, it's going to be the little things that will make all the difference in whether your dojo succeeds or fails financially.
- You can raise your rates -
- You can get your customers to buy from you more often -
- You can increase the number of your customers -
This isn't something I made up; I actually first read it in a Jay Abraham book. In fact, these principles have been around for a good long time.
Of course, there's a fourth way to boost your profits, and that's by lowering your overhead. But, we're focusing on positive-side methods right now, so we're going to stick with these three concepts over the next several emails.
When dojo owners try to increase their profit margins, typically they focus on the first and last methods of the three I list above. However, there's usually only so much you can do there*, and many of the best profit-boosting methods are to be found in approach #2.
Now, I'm going to talk about all three ways to increase your profits, but like I said - the really interesting stuff is all found in the second topic.
By the way, there's one thing I want to make clear to you before I start to get into this stuff - obviously, I'm not going to be able to cover everything in the book in an email newsletter. So, get the book if you want the complete treatment of the topic.
Alright, enough for today. Tomorrow, we'll start with discussing raising your rates.
Until next time,
Mike Massie MartialArtsBusinessDaily.com
Quick-start Guide to My Books and Resources: - Looking for a list of books and resources I've written? Click here! - Looking for one-on-one coaching to grow your dojo? Click here...
P.S. - I know, you're thinking that marketing offers an unlimited opportunity to get new students. You're right, but that's within a finite amount of time and with a finite intake capacity. In other words, you can only attract so many new students at once, and your dojo can handle only so many of them at a time. That's where you're limited with marketing when it comes to boosting your net.
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