Posted by Mike Massie on February 2, 2010
“But I Can’t Do That In My School Because Of…”
Your services are likely worth much more than you think they are. So long as you set your prices lower than your value, you will never experience the true potential of your success.
Last week I sent out an email that listed actual enrollment numbers for three members of the Martial Art School Alliance website.
These are three instructors who are kicking tail despite the down economy. And, one of them actually lives in an area where the unemployment level is 15%.
It just goes to show you can succeed in this economy, and that most of the things we think are holding us back from being successful are internal and self-imposed.
Which bring me to today’s topic…
What To Charge, What To Charge
Earlier today, I received the following question from a reader regarding that email:
“Even with their below average facilities, do you recommend them charging $99 a month?”
People quote me on that $99 a month figure all the time (and the 10% of your gross for marketing – it’s a guideline, people, not an unbreakable rule) and I have to remind them that was the absolute lowest I thought a school should charge…
Back in 2003.
Seven years later, your cost of doing business has increased significantly. You need to be charging at least 20 – 30 % more today than you were seven years ago. That is, you should if you want to have something left over after overhead, taxes, inflation, and the sinking value of the dollar are done with your revenues.
They Are Doing What With What?
For the record, two of those guys have nice schools. Jim is the one teaching out of a warehouse facility, and he is doing phenomenal at it due to having the right mindset and being an awesome teacher and coach. (And actually, I kind of like his school… it takes me back to when I first started training. Who needs heat and AC, anyway?)
But here’s the kicker – all three of these guys charge about $150 a month average in tuition.
Now, I know for some of you out there this isn’t a shocker. You’re already charging that much or more.
But for many of you, you’re thinking that’s an impossible figure to charge your students for lessons.
Some of you are outraged, thinking these guys are ripping their students off (baloney – every one of them is worth that and more). Others of you think they must have something you don’t in order to demand those rates. Still others of you are wondering if I’m even telling the truth.
And that’s why you’re always broke.
You Can Lead A Horse To Water…
I’ve argued and argued this point for years. Well, I’m finally sick of arguing and fighting with instructors about how much to charge.
For those of you who are willing to believe your value merits charging a premium for your services, outstanding. You deserve to be successful and well-respected. Just keep adding value to your services and bringing value to your communities and you’ll continue to be rewarded for it.
But for those of you who don’t want to believe you can charge a premium for your services, for whatever reason, that’s fine by me as well. You can stay broke, while instructors who know their value will have nicer schools, better equipment, higher salaries, and a better quality of living.
Not because they have something you don’t.
No, it’s because they have the proper mindset for success.
Until next time,
Michael D. Massie
P.S.: I am inundated with requests for “free” advice these days. I am simply too busy to give away my valuable time and knowledge for free, as it’s a disservice to my paying clients.
Remember, if you are a MASAI member you can almost always get your questions answered at no additional cost in the member forums. However, if you need to correspond with me by phone or email for help with a pressing business issue, please visit the MASAI online store and order phone or email coaching with me.
Thanks for your understanding!
Posted by Mike Massie on January 21, 2010
…And What I Plan To Do About It
For nearly all my adult life, I've taught martial arts professionally and operated full-time martial arts schools... so I know EXACTLY what challenges you face, day in and day out.
Yesterday, I told you that the only way to preserve traditional martial arts values in this industry is for like-minded instructors band together.
I’d like you to know, that’s exactly what I’m trying to do through the Martial Art School Alliance International.
But before I tell you how we’re doing that, I feel it’s important to explain to you how I ended up launching this huge project (which has taken me the better part of a year to realize) and how exactly that can benefit you as a school owner.
“Oh No… Not Another Damn Consulting Company!”
Sorry for the strong language, but back when I was just running my schools, do you know how tired I got of people in the industry trying to get into my wallet?
Sure you do – because you probably feel the same way. And that’s why, ten years ago, I could have never, ever imagined myself doing what I do now… running a popular martial arts business blog, providing online coaching to hundreds of school owners, and helping new school owners find their way through a minefield of conflicting information and advice.
The thing is, I didn’t get in this for the money… in fact, I never meant to get in this thing at all. This all started out with me writing a martial arts business manual about doing business honestly and with common-sense fiscal values. But, it ended up with me becoming a weekly advice columnist for thousands of martial arts school owners and instructors.
Why The Martial Art School Alliance?
Not that I’m complaining… and to tell you the truth, I really don’t mind it at all. While I never intended to become a business coach, I have to say I enjoy helping school owners succeed.
But I never intended to do this full-time, even after it took off. So once I started getting a lot of requests for advice and business guidance, I knew I’d have to find a way to deliver information on a mass scale soon… else I’d be spending all my time working with individual clients and I’d never have a life.
Funny thing about that… did you know that there’s a lot more money in doing one-on-one consulting?
Sure, I could make a killing charging people for “consulting packages” (what I call prolonging your pain – consultants make a lot more money when they take a roundabout route to helping you solve your problems).
So, why don’t I do that?
Number one – and I’m being perfectly honest here – I don’t believe that it’s an efficient use of my time. Second, I value my time dearly, and quite frankly most school owners who need solid business advice can’t afford to pay my hourly rates.
So, I figure it’s better for both me and the school owners I help each month to deliver information on a mass scale at a very reasonable price. They get what is very nearly personalized coaching at a fraction of the cost, and I get to go hang out at the bookstore or with my wife any day and time of the week I please. It’s a win-win, all the way around.
So, now you can see why I created the MASAI site, and why I felt it was worth investing the last nine months of my life to realize.
Was It Worth It?
Heck yes. I’d have to say that this project has been as rewarding as promoting one of my students to black belt, if not more so.
And truthfully, I am darn proud of the results. As of today we have nearly 100 information-packed articles and dozens upon dozens of ad templates and resource documents on the site. In addition, I spend considerable time answering questions on our forums, and frequently respond with new content that specifically answers questions our members have posted on the boards.
The great thing is, our members are also more than willing to help each other out by sharing advice and information on the boards. I can’t tell you how many times I’ve gone to answer a member’s request for advice only to find three or four of our members have beat me to the punch.
They’re a great group of people, and it just goes to show what a strong community we’re building through this organization.
Future Plans – Where MASAI Is Headed
One of the issues that’s been bothering me for the last few years is my concern with where the martial arts industry is headed. It seems like every year, we get further and further away from our traditional values, and move more and more toward becoming an industry without a soul or conscience.
“It seems like every year, we get further and further away from our traditional values, and move more and more toward becoming an industry without a soul or conscience.”
Well, I’m not okay with that – at all. And, after reading your responses from last week’s poll, I can’t just stand idly by without doing something about it.
That’s why I’m making it a point to make MASAI a haven for instructors who want to preserve their traditional values while still embracing the future.
You see, there’s just no way we can ignore the sweeping social, economic, and technological trends that are going on around us at breakneck speeds each day. To do that would kill the industry just as surely as abandoning our traditional values would.
Even so, I still strongly believe we need to preserve the heritage of traditional values in the martial arts. And, I believe that the best way to do that is to help like-minded martial arts instructors to be financially successful by providing the highest quality of martial arts business advice possible.
“The best way to do (preserve traditional martial arts values) is to help like-minded martial arts instructors to be financially successful by providing the highest quality of martial arts business advice possible.”
And that’s where MASAI is headed.
We’re Not “Anti-MMA” – We’re Just “Pro-Tradition”
Don’t be mistaken, we’re not trying to “fight” MMA. In fact, I there’s a lot I like about it and I openly encourage MMA instructors to join MASAI. Besides, like it or not, MMA is here to stay.
Moreover, there are a lot of instructors out there who actually want to teach MMA with traditional values; if anything, I want to see more of that, and to support those instructors.
On the other hand, we’re not going to be abandoning our member’s core values just to make a buck; that’s because we’re here to serve our members and to help them preserve the integrity of the industry.
My ultimate goal is to run an organization that is progressive enough to stay ahead of trends, while still staying true to the martial arts industry’s traditional roots.
Of course, I don’t have any delusions about how big this thing can get… I believe that 400 or 500 members is all we’ll ever see as far as growth and membership is concerned.
However, 400 – 500 like-minded martial artists banded together can accomplish a great deal with regards to preserving a legacy for generations to come. That’s my vision, and if you’d like to be a part of it I invite you to join us to be a part of that vision.
Now That You Know How MASAI Came About…
Does it sound like something that you can get behind? I hope so, because with every school that joins we grow stronger, and better able to serve our members.
And in case you’re curious, I’m not asking for much with regards to membership fees (less than the cost of a cup of coffee from your local convenience store each day). And that’s despite the fact that I’ve been told over and over again to raise the membership fees to double, triple, or more that what we’re charging.
But, I want the site to be accessible to all martial arts instructors, even those who are just starting out. And let me be honest about this – we can still deliver quite a lot with regards to business guidance and information, marketing and advertising assistance, and ongoing daily support without charging an arm and a leg for membership.
The Bottom Line…
The bottom line is, this isn’t about me – it’s about you and what your values are. So, I hope you become involved, and also invite others to join in order to help us grow.
Because one thing is certain; if martial arts instructors don’t band together to preserve the traditional values of the martial arts, this industry is going to look entirely different in five or ten years…
…and I have a strong suspicion neither one of us will like how it looks.
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For more information on the Martial Art School Alliance International, please visit:
