dojo location

[jdhunts]

I hate to ask this on a forum, but...

I have a great opportunity to purchase my own building/storefront in a small shopping plaza for < 150k. I am concerned because there happens to also be a martial arts school, albeit a different style, across the street. Normally I would avoid situations such as this, but this is a great building with perfect size and layout, and an almost unbeatable price.

Now the school across the street is very different. My dojo will be focused on karate and also providing before and after school care services. Their school offers many different types of programs from things like krav maga, padded weapons sparring, ground jujitsu, to tae kwon do. If you ask me, nothing more than a jack of all trades trying to appeal to everyone. (Did I also mention he is a soke or something)

What would you do in this situation? BTW: Real estate is very high in my area and buying just a tract of land would be more than this building. I am not so sure that we would be appealing to the same people, but it's my first time starting a dojo so I just don't know.

Looking forward to some responses

[Jiffy]

The first thing you must remember is that most new students know nothing of style. To them it doesn't matter which style they start in (as I said.... most, not all). What will happen is if they are looking at training, they will ask each of you why your style is better, but will only take it with a pinch of salt because they will believe you are bias.

With this in mind, it all comes down to price. Competition is always good for the consumer, but never good for the seller.

If however you are confident that you can maintain a lower price, you have a fair chance of success because you may get his existing students as well as new students of your own.

[MartialArthur]

Jiffy, I couldn't disagree more. If your studio looks better, the instructors are more professional and the program more appealing than the other guy, you can get more members even if your price is higher. Charging too low of a price is one of the biggest mistakes instructors make.

Very few people are looking for the cheapest training they can get. Most people are NOT true price shoppers even if they claim to be.

Here's a test:

Do you drive the cheapest car you can buy?

Are you wearing the cheapest clothes you can buy?

Do you feed your family the cheapest food you can buy?

Do you live in the cheapest house in your town?

There are a few people who can truthfully answer "yes" to these questions, but they are not you target market anyway.

Most people don't want cheap, they want VALUE!

[jdhunts]

Hey MartialArthur,

I have been told that before, and it does make sense.

The differentiating factor to me is that I will be offering before and after school care and the other guy does not offer this. It's not that I specifically want to run a school geared for children, but in my area, before and after care is in high demand and short supply. From a business standpoint, it can pay almost all the bills thereby letting me run the kind of dojo that I want to run.

Thank for the insight

[Jiffy]

Jiffy, I couldn't disagree more. If your studio looks better, the instructors are more professional and the program more appealing than the other guy, you can get more members even if your price is higher. Charging too low of a price is one of the biggest mistakes instructors make.

Very few people are looking for the cheapest training they can get. Most people are NOT true price shoppers even if they claim to be.

Here's a test:

Do you drive the cheapest car you can buy?

Are you wearing the cheapest clothes you can buy?

Do you feed your family the cheapest food you can buy?

Do you live in the cheapest house in your town?

There are a few people who can truthfully answer "yes" to these questions, but they are not you target market anyway.

Most people don't want cheap, they want VALUE!

Having read you're post, I have to say.... it make sence. You're right.

[Mr. Mike]

STill, it seems like a poor choice to open directly across the street from an existing school. If your demographic can fuel it, I say go ahead, but think of the downsides also. What if the existing school decides that he is going to start befroe and after school care? Well, he is already established, plus it sounds like there is variety there, as opposed to mainly Karate that you offer. The other school tries to appeal to everyone, and that is their target audience. If you open across the street and offer Karate(what type btw?) and the guy across the street had a plethora of programs to offer, the variety is what most parents will go for...and face it, the parents are to ones keeping your light bill paid, so we have to think from their perspective.

Don't think in terms of the established martial artist looking for a new routine...think in terms of the uninformed looking for something extra to add to their son or daughter's weekly schedule. While your after school care program may be a benefit, again, what if the other guy does it too? Also, you mentioned that it would be to pay the bills so you could run the school you really want to run, well, what kind of school is that exactly? And what will be the perception from the outsider? If you have advertising that boldly offers the care program, that is what they are going to think you offer. Then you may have a difficult time being taken seriously from the average acomplished MAist.

I see nothing wrong with teaching kids if you are into it for the financial side. Heck, even if you aren't, you should have an established youth curriculum. The benefits to the children far outweigh the naysayers opinions. Think of the confidence building, life skills, bully busting, self discipline, etc. Sure, the rare exception will gain these things from softball or soccer, but we also offer them so much more. Don't worry about what people say as it pertains to teaching kids. If that's what you want to do, do it. If nobody taught kids, I would be very upset for my own children. They have reaped so many benefits from their training that they just couldn't get anywhere else.

I would say to keep looking.

[claflintsd]

Don't hesitate; take it!

Burger King builds on the same corner as McDonalds. Gas stations build near the competition. In Bible College, one lecturer said that the best place to build a church is across the street from a church.

Offer a great product and you will do fine.

[Mr. Mike]

hamburgers and churches aren't MA schools. BK and MickeyD's have substantially different tastes and have been established for a combined 100 years. If that were the case, then by all means, go for it! Religion, same thing. Most often, people go searching for a church that caters to their existing doctrine. You won't find the same guidelines for karate school clientele.

If the deal is too good to pass up, then go for it. I'm not saying to run for the hills, but by all means, do your homework so you don't end up with a huge headache. If the demographic supports it, and you can offer a bulletproof business plan, then by all means shoot for the moon, and if you miss, you're still out in the stars somewhere. Do you have a solid client base established, or are you relying on walk-ins? Is this in or around a neighborhood or schools? Can you honestly offer a premium service at a superior value? Concentrate as much on the negatives as the positives.

[MartialArthur]

It really depends on the demographics of the area and the nature of the competitor. If he is pretty full and happy with his business, he is not likely to ad programs he doesn't want just to foil you. If he is very packed, it may be an indicator that the area is under-served by MA schools.

It is certainly a risk, though. If he thinks you may affect his business, and he has decent cash flow, he may try to "bury you" with a lot of extra marketing and PR.

It's a tough call. Without studying the area and all the competitors, it's tough to offer reliable advice.

[Aodhan]

Take your proposed location, draw a circle with a 3 mile radius. Any MA school in there is your DIRECT competition (Obviously the guy across the street qualifies). Now draw another circle with a 6 mile radius. Anyone in the 3-6 mile range is your INDIRECT competition.

Take a look at the population and the income level in the area, and see if you think you can make it work.

Shop (Call up and ask) prices for the studios that will be your direct competition. Offer competitive pricing that will allow you to pay rent, pay yourself, etc. See what you can offer that they don't. People will drive extra mileage for something they really want.

Take a look at the traffic patterns. Is it difficult to get into your parking lot? Are there other foot traffic draws in the mall? What are the businesses around you? Why did the previous business there fail? What is your target market? Moms with kids? Serious adults? Teens?

Answer every question you can think of before you plunk down the money. Draw up a business plan. That is the primary reason businesses fail, is because they don't plan or don't follow their plan.

Aodhan