Home: Message List - How do I raise prices without losing customers (students) and discouraging new contacts?

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

Y Not Mag — Tue, 08 Jan 2008 04:24:00 GMT

ProDefense,
I happen to also like Bluesuit's feedback. I hope that we all helped in some way. Please provide feedback/updates on your new strategy. Good luck to you. To bad you are not in my area)

Best Regards
Jamila A. Serrant (Owner/Founder)
Y-Not Magazine LLC (Opens dialect between Single Men & Women)
Email: ynotmagazine@gmail.com
Telephone: (718) 514-5924

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

guru2008 — Thu, 03 Jan 2008 18:26:03 GMT

want to grow your business in Dixie County. Demographics definitely are not friendly in your favor a post from lighthouse24 at 3:15am and mourak at 9:15 pm put some good ideas out their, Furthermore as a Director of a local Charity getting donations, grants,families,sponsors,volinteers.can be challenging, profitable, and fun at the sometime you might enjoy your "Great Purpose" with Charity in mind and enjoy this style of business model better and find it more fulfilling with that said....If you continue to run the Business Model have been you most likely will need to move closer better demographics and in that case i would suggest working for a very successful venture first even if just to get modus operandi.

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

MetroGal — Thu, 03 Jan 2008 14:54:30 GMT

Just to clarify - when you say it's $5.00 a class - it is just $5.00 a class? Or do you offer class everyday/several times a week and if a student took advantage of all the classes in a given month, it would end up costing only $5.00 a class?

I think it's normal for a martial arts studio to only have students that come once or twice a week. In fact, I think it's normal for most gyms. With work, school, etc. it's hard to show up every day. Your issue does not seem to be frequency, but volume of students needed to generate more revenue if you do not want to consider changing your pricing structure. Here are some options to consider, if you have not already:

1) Have you considered revisting class schedule? There could be better times to offer class for adults vs. kids vs. teens.
2) Have you considered adjusting course offering by level or age group? For example, a new comer with no training is not going to enjoy class if they are in the same class as someone who has a Blackbelt for instance. Likewise, the Blackbelt will get frustrated if class has to slow down for someone who is new.
3) If you offer class too often (e.g. everyday) that could actually discourage someone who can only go once a week, and doesn't want to be in the same class as someone who comes 3 times or 4 times a week. I would say that most people are probably only able to come once a week.
4) Are you offering a breadth of classes that is of interest to existing and new students (e.g. sparring, performance practice, forms, cardio, etc.?). Or do students not know what to expect each day, or is it the same always?
5) Lastly - how are your general facilities - is it clean, accomodating to men/women?

Best wishes. The great news is that it's January which means that many people are thinking about fitness so it is perfect timing for a burst of advertising.

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

mourak — Thu, 03 Jan 2008 02:14:15 GMT

first of all I'm sorry I couldn't replay so soon,and second of I look at your number and your location(I live in fl too),it seems to me very clear that you need big support from your community(events,.donations,....),plus you need to add some products to your service as selling (chines tea, creams for health problems,....)
others ways,hopefully this All help from me and others .

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

Bluesuit — Wed, 02 Jan 2008 21:28:38 GMT

Let me ask you the question in reverse: Do you think the low price could actually be discouraging new students? Personally, if the cost is advertised too low - - I would question what I was getting in return and would not be interested. I know this sounds counter intuitive, as you may assume low = more enrollments, but it is not necessarily true. For example, in California there are many martial arts schools that are located in lower income districts - however the class prices are just as high as the higher income areas because of the quality of the instruction. So, just because you are located in a lower income area it does not mean that the fees need to reflect that.

It's great that you are concerned about affordability and giving back to your community vs. generating a profit. But, you also need to keep paying the bills. Here is my idea: Have you considered offering a "residents only discount," this would allow you to continue to give back to your community, while at the same time raising your rates to others outside the area that could afford to pay more?

Good luck.

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

Lighthouse24 — Wed, 02 Jan 2008 08:15:08 GMT

In a low income area, and especially one that is somewhat isolated and rural, transportation is often the problem for youth activities. The parents might readily pay your fee to have the kids in the program, except they are working and can't get them to your place or back home. You can look at the area and see if that might be the case. If so, I wonder if starting a bus route to maybe bring kids from their school to your dojo and then take them home might be feasible. I know it adds a cost, but perhaps it would increase your revenue enough to justify it. It might help qualify you for some grants and state funding, as well.

Along those lines, you might also consider approaching the director of any United Way or state funded charities in your county that serve at-risk children to see if maybe a partnership or alliance could be formed. I don't know what that alliance would be exactly, but maybe several people with a common mission in the same town working together could come up with something.

Finally, if you haven't already, do a little investigative probing with families around the community to ensure that your lack of attendance is really just a pricing issue. When I was a kid, I attended a Boys Club that was run by a man who was and still is considered a saint in that community -- but he was evidently clueless regarding the club's own gang of bullies (and some of the things they did in dressing rooms, the parking lot, or even at school that scared a lot of boys away, especially the smaller and younger ones who really would have really benefitted from the programs). Obviously, I don't know you, so PLEASE don't think I'm accusing you of running a sloppy or unsafe operation. I'm not. To me, you seem to be a very dedicated individual who is offering valuable training at an almost ridiculously low price -- so I'd simply want to make sure that price really IS the sole issue that's keeping potential students away.

I wish you the very best in the New Year.

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

LUCKIEST — Wed, 02 Jan 2008 01:41:27 GMT

Y Not, I like you ideas and answer especially #2.
Pro said that he teaches in Dixie county, Cross City, FL.
LUCKIEST

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

Y Not Mag — Wed, 02 Jan 2008 01:35:24 GMT

Hello ProDefense,
1. Have you ever considered advertising in a middle-class neighborhood, receive a certain amount of pre-deposit money, then move to that new location. I think that you should have a certain amount of perspective clients before investing the money to move. I think that this will be a wise business decision. 2. Do some homework and find similar schools with monthly packages and make some of your own packages to advertise before moving to your new neighborhood. 3. what type of martial arts do you teach? Are you in the New York city area?

Jamila
Y-Not Magazine LLC

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

LUCKIEST — Tue, 01 Jan 2008 23:28:47 GMT

Pro, as I read your last response, "You teach"
We need teachers and teachers get paid a salary, so that this is a side business (maybe)??
Having a business that loses money is great at tax time. RIGHT??
LUCKIEST

Re: How do I raise prices without losing customers (students) and discouraging new contacts?

ProDefense — Tue, 01 Jan 2008 23:21:32 GMT

Mourak, I have been in business for 15 years. I currently have 22 students, 13 of which come twice a week. The rest come once a week. Which means I am bringing in about $700/month. I am spending an average of $450 on bills, insurance, advertising, etc. That doesnt leave much to put back into the business, never mind making a profit. I teach in Dixie county, Cross City, FL.