What's It Worth?

[isshinryu5toforever]

I think, as long as it's done slowly, not suddenly, and things are explained to the students it will be ok. That only applies if you're a good teacher, which sensei8 most definitely appears to be. To continue with the student as a consumer dichotomy we have been creating applies here.

If the product is good, they recognize its value. There may be some grumbles at first, but as long as the reasons for the price raise (back to the normal level) are reasonable (this is assuming that they have a short memory, which most people do when it comes to generosity) things will be fine. There will be people who oppose it, and there will be people who defend it. It's kind of the 10-80-10 rule. 10% of all people will always love it, 10% will always hate it, and 80% will see what your reaction is, and make a decision off of that.

10% may see the return to the previous prices as completely and totally reasonable, 10% will have forgotten the generosity and staunchly oppose it, and 80% will wait to see how both sides are dealt with. As long as there is nothing done to escalate tension between the 10% who oppose the price raise and the teacher, ie "You're so ungrateful, I lowered my prices to ease the financial burden when people had trouble, and now that you have more money, and I want to make a living, you get upset." there should be no problems at all.

[sensei8]

sensei8 wrote:

Some of you here might remember when I had cut my prices in half because of the economic downturn. Even then, I cut it another 10 -30 percent off of that. Why? My students are more important to me than my wants, for my students are what I value, and they're what I deem of great value.

I remember discussing this previously, and I commend you for your actions. Top shelf, sir. However, I raised a concern then, and I want to bring it up here again, just for a refesher, and discussion. My concern was that if and when things would happen to turn back around, could you, or would you, bring prices back up to where they were, without the students grumbling and asking "why?"

Could I? Yes! Would I? No! I wouldn't return back to the original pricing structure. Why? As I stated back then, I brought the pricing structure as low as I could per my accountants advice, and at its lowest price, I was still able to remain viable. Therefore, I wouldn't have brought the prices back up TO THE ORIGINAL PRICING STRUCTURE; I'd feel like a thief! Before I would've brought up the prices, I would've relocated the dojo to the church first. That's me!

Let's do a hypothetical. My church option doesn't exist. To raise the prices back up, there has to be a great reason(s) to justify it with my students/customers. And the only reason(s) that I can come up with are these:

1) Rent increase

2) Utility increse

Uncontrollables are called that for one reason; they're out of your control. Rent I can negotiate, but, once the landlord sets the new rent prices, I've got to pay the new rent rate or move. Utility rate increases, well...one can't negotiate with them much if at all. Pay the utility rate increases or teach in the dark!

Even at that, any and all increases must be done both small and slow!

Edited July 26, 2009 by sensei8

[sensei8]

Sensei8 - from what I've read, I believe you did the right thing at the right time and I commend you on that.

But unfortunately, not all martial arts school owners think the same way you do. They talk with their friends who own other schools or visit other schools and think "well, if so & so can charge x-amount of money, then, why shouldn't I?" (not factoring in the demographics and other vital issues before deciding on that).

I hate to sound harsh but it's reality - they eventually suffer for their foolish mistake.

Thank you and BINGO on your post! That's why I'll be open way after they've closed their doors.

[sensei8]

I think, as long as it's done slowly, not suddenly, and things are explained to the students it will be ok. That only applies if you're a good teacher, which sensei8 most definitely appears to be. To continue with the student as a consumer dichotomy we have been creating applies here.

If the product is good, they recognize its value. There may be some grumbles at first, but as long as the reasons for the price raise (back to the normal level) are reasonable (this is assuming that they have a short memory, which most people do when it comes to generosity) things will be fine. There will be people who oppose it, and there will be people who defend it. It's kind of the 10-80-10 rule. 10% of all people will always love it, 10% will always hate it, and 80% will see what your reaction is, and make a decision off of that.

10% may see the return to the previous prices as completely and totally reasonable, 10% will have forgotten the generosity and staunchly oppose it, and 80% will wait to see how both sides are dealt with. As long as there is nothing done to escalate tension between the 10% who oppose the price raise and the teacher, ie "You're so ungrateful, I lowered my prices to ease the financial burden when people had trouble, and now that you have more money, and I want to make a living, you get upset." there should be no problems at all.

ABSOLUTELY! I couldn't have said it any better...and I didn't. Very solid isshinryu5toforever, very solid.

Had I kept the dojo, I wouldn't have raised the prices! Why? Because the pricing restructure I did was only done to the tuition and testing fees, and these areas are the bulk of revenue for most dojo's. What I did on my retail side were completly seperate from tuition/testing fees. Besides, if I just went and raised the prices back up to pre-economic downturn, I would've felt like a greedy thief and I couldn't have slept much, if at all.

A gas station makes no money at the pumps. A gas station makes its money in the garage. The pumps brings the customer in, but, the garage keeps the customer. So does a dojo; it doesn't make much from its retail side, but, a dojo makes its money from the floor of the dojo. Hence, the retail brings in the students, but, the floor keeps the students. Even though most students come in, not for supplies, but, to learn the martial arts.

Edited July 26, 2009 by sensei8

[jaedeshi]

What is it worth?

That's a question that is near impossible to answer for me. Can you really put a price tag on martial arts instruction?

This is what I do. I teach old school from home not as a business or as a means to support myself. I interview people and select my students so I'm sure not to teach anyone who would abuse the knowledge. I only collect donations to support the up keep of the dojo. Even being a donation funded dojo I probably have more variety of equipment that 90% of schools out there. I added my own personal tradition at the end of every class where I thank and shake every students hand. This is for giving my the opportunity to teach and grow from teaching.

The only payment that I can see that would repay any instructor would be to use the knowledge as it was meant to be used. To protect life, yours and those who can't defend themselves. Pay back the founders by practicing, teaching, and developing the art selflessly so its not lost in time.