Help with charges/fees

[Spartacus Maximus]

This is a request for help and ideas on what would be fair to charge prospective students. Profit is not the goal here, but to make just enough to keep the place open.

The place is part of a community centre/all purpose recreation complex. Renting a gym at that place twice a week cost $32/hr. 2hrs every Saturday and Sunday would be $256/month to keep it open and accessible.

Assuming this cost must be shared equally among students, what amount would be fair? This will be in addition to another amount for monthly membership and maybe a token contribution for shared dojo equipment such as striking bags, kick shields etc.

[aurik]

My recommendation would be to charge a single all-inclusive fee. If you charge separate fees for facilities rental and equipment, students are liable to think you are "nickel and diming them" with fees.

I'm no business person, but I'd figure out a) what the prevailing rate of the area is, and b) what your expenses are in terms of facilities rental, equipment purchases, insurance, etc and your time. Then charge a rate that commensurate with the local prevailing rate that will allow you to cover your costs assuming you have X number of students.

Our CI runs classes through several of the local rec centers, and what he does is offers the class through the rec center's course catalog. The rec center handles all of the billing, takes a certain cut out of the fees to cover things like insurance and facilities rental, and sends the rest to my CI.

[bushido_man96]

Great thoughts by aurik there, and I concur. My initial thought, just to throw a number out there, would be maybe around $50 per month, per student. I like to offer some tiered discounts for family members though, to encourage families to do it together. I'd go something like full price for the first family member, maybe $30 or half at $25 for the second member, maybe $10 for the third, and then $5 for each additional family member beyond that.

But, like aurik mentioned, you should start with what your expenses and overhead is going to be, and then work backwards to determine how many students you need at what price point to break even. The problem is dealing with the ebb and flow of student numbers, and making sure to keep a price competitive enough to attract students and cover the costs based on a minimum student number, or something like that.

[sensei8]

Great topic; thank you for it!!

You've so far received some great advice and insights.

Business wise, does the CI and/or owner think competitively vs creativity?? I believe that when you're thinking competitively, you're thinking more about what the other MA schools doing. When I think creatively, I'm thinking about what I'm doing and I put more of that energy in that,

So, I don't think competitively, I think what am I doing right here?? How can I do it the best?? As I focus on that and put all the energy in that, I create a product, and what we have IS a product, that's outstanding and it's a full expression of who I am.

Find a way to express yourself fully. Don't worry about what other MA schools are doing, including price structures. Any business is in business to make profit, and yes, if you're charging for your product, then you're a business. When you find that expression of who you are, that's going to really resonate out there, in what you're doing and how you're doing it, no matter what genre you're in, whether it's art, food, tech, doesn't matter.

Whatever price structure you decide, believe in it and support it wholeheartedly. There's no magic formula whatsoever because if you believe in yourself, put out a stellar product, have an unblemished integrity, students will darken your door gladly.

[Nidan Melbourne]

We have a monthly direct debit option which covers training fees, insurance, rental fees (location hire) etc.

We make it clear to all prospective members where their fees are going in its entirety at time of signing up. and notification of any changes to where fees are going.

[bushido_man96]

We have a monthly direct debit option which covers training fees, insurance, rental fees (location hire) etc.

We make it clear to all prospective members where their fees are going in its entirety at time of signing up. and notification of any changes to where fees are going.

This is a great practice to get into. Being open and honest should be the hallmark of what we do, but not all business people see it that way.

[sensei8]

We have a monthly direct debit option which covers training fees, insurance, rental fees (location hire) etc.

We make it clear to all prospective members where their fees are going in its entirety at time of signing up. and notification of any changes to where fees are going.

This is a great practice to get into. Being open and honest should be the hallmark of what we do, but not all business people see it that way.

I agree with Brian wholeheartedly.