| Friend,
So besides raising your tuition to an optimal rate, what are some of the other ways you can ensure that you're being paid what you're worth at your dojo?
There are quite a few, but before I get into these, I should make it clear that if you don't get the big things right, these little things won't matter much.
And by "big things", I mean marketing and lead gen, sales, retention, and getting paid on time. I've spoken a lot on these topics in this newsletter over the last two years, but if you missed those emails you can always click the links at the bottom of this message to find my resources on these topics.
Now, back to the "little things" that can make a big difference in your bottom line. These things make a difference because at a certain point, you're going to top out in your dojo.
Now, literally you really can't "top out" with regards to how much money you're bringing in, so long as you can keep increasing the number of students you have enrolled.
But, if you believe that your return (meaning "profit") is going to increase linearly as you add more and more students to your school, you're absolutely, 100% mistaken.
I know that all the articles you read in industry magazines and the stories you've been told by industry "experts" imply that the more students you have, the more money you make...
However, that's really not true, due to the law of diminishing returns, which states that when a single factor of production is increased and other factors remain the same, the marginal output of production will at some point decrease.
Meaning, that when you add more students, you also have to add more... - Space
- Employees
- Classes
- Expenses and overhead
And, this cuts into your profit margins significantly. It's not that you can't make more money running a larger school with more students; it's just that it becomes exponentially more difficult as you have more moving parts in play.
So, at some point you WILL cap out in your school with regards to your capacity to add students, as it relates to your willingness to expand and your ability to do so.
Some of you just aren't cut out to run a large school with a large staff. You simply do not have the skills or the inclination to do so (and I suspect that's why you are subscribed to this newsletter).
There's nothing to be ashamed of about that, believe me; I found out early on that I had no desire to run a large school, and actually cut back on my enrollment and school size as time passed, so I could have more time away from my business.
Which is why the tips I'm going to provide you this week will be incredibly useful to you in maximizing your profit in your SDBP-type school.
Stay tuned, because I'm going to be providing these tips and ideas over the course of the next several emails.
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. - You may be surprised to know that many of the largest schools that you've read about over the years in magazines and been told of at industry events actually don't turn much of a profit at all. People on the inside of the industry have known this for years, and probably one of the best kept secrets in the martial arts industry mainstream is that the most profitable schools are those that follow the Small Dojo Big Profits methodology. But you'll rarely hear that from someone who owns one of these schools - because hardly anyone likes to admit that they're wrong in public. | 