| Friend,
Let me be blunt about today's email.
If you don't believe that you offer something UNIQUE and VALUABLE to the world...
Then what I have to say to you today will be wasted on deaf ears.
If you believe that martial arts instruction is merely a commodity - a service that is of the exact same value, no matter where it is received or who is delivering that service - then today's email is NOT for you.
However, if you believe that what you offer is DISTINCT and of HIGH VALUE, read on...
The Final Piece of the Pricing Puzzle
The final piece of the pricing puzzle is so simple, you'll slap yourself for not realizing this sooner.
It's what every single successful business owner knows and does to ensure that they are turning a maximal profit, making their efforts in business both worthwhile and rewarding.
And yet, if the service you offer is of low quality, this final element of pricing your services will backfire on you, and you will suffer because of it.
So, to what am I referring?
Something that is simple, elegant, and easy to do. It's called...
Price testing.
Yes, that was a little anti-climatic, wasn't it? Yet, this is the one component of determining prices and rates that most school owners either overlook, or they get entirely wrong.
See, most dojo owners think that price testing means that you determine a price based on all the factors we previously discussed (competitive analysis, economic conditions, and market demographics), and then once people accept that price, you're done.
Ta-da! You just leave your prices there for all time, right?
NO! That's why so many of you are still charging the same rates you charged in the 90's and 2000's. And, it's partially why so many of you struggle to pay your rent (and pay yourself) each month.
So, get this through your head and make it your mantra:
"Price testing is a continual and never-ending process."
Meaning, we price test now, find the ideal price for the current market and economic conditions, and then we price test again six months from now.
Now here's something else to get through your head and into the depths of your brain where all universal truth abides:
"Price ALWAYS goes up!"
Yes, that's right. Price always goes up - always! Even in volatile markets like gold and real estate, if you look at the trend over time, price ALWAYS goes up.
That's because of inflation. Inflation is the gradual devaluing of currency over time. And, because the value of currency decreases over time, then your prices MUST go up over time, because...
The value of your SERVICE remains the same!
Which is why you constantly have to test new, higher prices in order to stay profitable in an economy where inflation is a constant factor.
Tomorrow, we'll start talking about how to do that, without looking like an ass.
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. - Remember how I talked a lot about value in the beginning of today's email? You have to offer your customers something that is of high value in order to command premium rates. And if you teach kids, I have to tell you - no parent in the world places a high value on kicking and punching. However, they do place a high value on their child's happiness, confidence, and grades. Which is why you need to go teach character education in your dojo. If you aren't yet, start now! | 