The Lower the Price, the Lower the Expectations

When you read the title of this article - the Lowerwith people in the school who are like them and want
the Price, the Lower the Expectations - what cameto be trained by a staff of professionals.
to mind? Did you feel that meant that the marketThe Screen Money Provides
would have lower expectations of your school if itTo a degree, the high-income earners' market will
was low price? Or did you feel you would not havewant to train at a club that not everyone can afford.
to meet high expectations if your price was low? ForThis is not out of snobbery as much as the natural
far too many owners, the second description is morescreening process that money affords them. This is
accurate.why people belong to country clubs and private golf
As your skills as a teacher improve and your systemcourses. I've belonged to plenty of each, and usually
for operating the school becomes more polished andthey are not any nicer than upper-scale public
professional, you can begin to raise your standards offacilities. The difference is that by paying more for
performance and your tuition with it.what everyone else can have for less, you don't
This is not to say people don't like a good deal.have to do it with everyone else. The levels of
Everyone does. However, there are certain thingsexpectation are much higher for the private club, and
you don't expect to have discounted and, in fact,so is the price.
may not want them if they are. Health care is at theThe School Down the Street is Cheaper
top of that list. Rarely do we say, "Give my kids theHere's a great response to a prospect that points
cheapest medical exam possible." Education is muchout that the school down the street is cheaper: "Mrs.
like that. Parents don't work hard to give theirJones, we could charge that same tuition. But you
children the cheapest education possible. Your martialknow what? We would be packed, and it would be a
arts school is not a gym where club owners competelot harder to give your son personal attention and to
over $29 membership fees. You want to bemaintain the quality of students we are known for.
compared to the local private schools, not the localPlus, it probably wouldn't be as safe with loads of
gym.kids in here on a discounted program. We're all about
In establishing your tuition, divide your area's pullquality, and our tuition helps us keep our student
potential student base into three levels of income:standards high. Our school is really for the families
the lowest third, the middle third, and the highestwho want the best for their children."
third of income earners. You want to price yourDon't you love that last line? "Our school is really for
tuition for the middle and highest thirds, not thethe families who want the best for their children."
lowest. It is much easier to manage quality and teachWhat parent is going to respond, "Well, that's not us.
100 students paying you $150 per month than 300We want less than the best for our kids."
students paying you $50 per month. The gross is stillThe most important thing to understand is that this
a projected $15,000 per month, but the amount ofmarket will not expect you to be the best instructor
work and stress to manage 300 students is muchand the cheapest at the same time. However, at a
more than just three times what it is for 100.good price, they will expect you to be the best, so
The top two thirds of income earners are not terriblymake sure you are always studying and expanding
concerned over $100 or so one way or the other.your skills as a martial artist, a teacher, and a
They are concerned about getting a return on theirbusinessperson. Then, make sure you are training
investment and feeling as though they are valuedyour staff at least two hours per week to carry out
members of your school. They will also want to trainthe mission of Being the Best.