Fair market Value

terryl965

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What do most of you charge for your services? We have three cayagories for you.

1 Teach out of a rec.center or church? How much

2 Teach out of a fitness center or share some space for certain time slots?

3 Own and maintain a fulltime business?


In my area the average for a rec center type of school is $65.00 a month, churches is $50.00 but these are limited to two classes a week.

Fitness center or share a space around $75 - $95 per month but again it is most likely three days a week.

Own or maaintain a business it is around $125.00 - $175.00 a month.

I am curious because I am a school owner and I fit in to rec center pricing even though I am a fulltime business, I am debating about should I get into the market value that has been placed on MA in this area?
 

dancingalone

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What do most of you charge for your services? We have three cayagories for you.

1 Teach out of a rec.center or church? How much

2 Teach out of a fitness center or share some space for certain time slots?

3 Own and maintain a fulltime business?

I am a little unusual as I have multiple teaching opportunities. I am considering consolidating my efforts in favor of a full-time commercial dojo however. But this is my current situation.

church TKD class (2 1 hr classes a week, 1 45 minute sparring class): no fee

karate classes at the private dojo built onto my home (2 2 hour classes a week, students welcome to drop by and use facilities any time - I usually look in and make corrections gratis if I am around): $25 a month per student

corporate wellness karate classes (within fitness center and also on-site with client): $3000 per six week session minimum with 2-3 1hr classes per week, additional fees for student ranking certificates and excess overflow extra

You can see that I have no real on-going facilities expenses. After insurance, pretty much anything I make goes to pay assistants or in my own pocket and/or savings for future expenses. If I really needed to I could make a lot more money out of the students that train at my private dojo, but many of them have been with me for years and I'm really more interested in teaching and spreading authentic Okinawan karate there than making money. If I charged more money there, I doubt I could continue to teach things exactly as I want. Right now it's a don't like it, then leave situation which is ideal in my mind.

If I start/buy a full-time dojang, I believe my pricing would be within the $150 a month range, but I do not plan to charge for belt exams.
 

Daniel Sullivan

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What do most of you charge for your services? We have three cayagories for you.

1 Teach out of a rec.center or church? How much

2 Teach out of a fitness center or share some space for certain time slots?

3 Own and maintain a fulltime business?


In my area the average for a rec center type of school is $65.00 a month, churches is $50.00 but these are limited to two classes a week.

Fitness center or share a space around $75 - $95 per month but again it is most likely three days a week.

Own or maaintain a business it is around $125.00 - $175.00 a month.

I am curious because I am a school owner and I fit in to rec center pricing even though I am a fulltime business, I am debating about should I get into the market value that has been placed on MA in this area?
I rent at time slot at a ballet studio and teach from home. I charge ten dollars per lesson. I do not charge for belt tests prior to black.

Daniel
 

andyjeffries

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What do most of you charge for your services? We have three cayagories for you.

1 Teach out of a rec.center or church? How much

I am curious because I am a school owner and I fit in to rec center pricing even though I am a fulltime business, I am debating about should I get into the market value that has been placed on MA in this area?

We train in a Leisure Centre twice per week (1.5 hours and 2 hours), so I guess close to your rec.center and the price is 瞿30/month (about $50 probably). You're probably asking more for US members, but I thought I'd post anyway.

I'd say go for the price increase. If you are better than your competitors and cheaper then you don't need to be both. You can probably increase slightly, make more profit without completely annoying your existing students. Or maybe grandfather existing students in for one year on their current price...
 
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terryl965

terryl965

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We train in a Leisure Centre twice per week (1.5 hours and 2 hours), so I guess close to your rec.center and the price is 瞿30/month (about $50 probably). You're probably asking more for US members, but I thought I'd post anyway.

I'd say go for the price increase. If you are better than your competitors and cheaper then you don't need to be both. You can probably increase slightly, make more profit without completely annoying your existing students. Or maybe grandfather existing students in for one year on their current price...

no glad you did, like to see what everyone charges.
 

SahBumNimRush

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Right now we rent a stand alone space and charge $65/ month. The overhead is killing us, and it is a large part of why we are closing the doors at the end of the month. My Sahbumnim is retiring, and I am opening up a dojang in a fitness center the first of April. I will only be offering class 2x/week at first, and I am lowering the dues to $50/month, although I have been cautioned against lowering the fees. If something is too cheap, people don't see value in it.. .

That said, we've never really been what I would consider a commercial dojang.. .
 

jthomas1600

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The school I attend is in it's own building. All equipment is new/very well maintained. The restrooms/changing rooms are always clean. There's a large warm up room that's open for use before of after class. The school charges $90 a month. The classes are 45 minutes and students are encouraged to take 2-3 classes a week and take advantage of the warm up room. We do have testing fees of $45 per test and most students will test 3-4 times a year. So it's between $1,200-$1,400 a year per student. In my area weekly guitar lessons will run you about $100 a month for 4 lessons that are 1/2 hour a piece. So while it seems like we pay a lot (I take TKD and so do a couple of my kids) for martial arts lessons, I think it's comparable to what other people spend on other hobbies. In my town it's not uncommon for parents to spend thousands of dollars to send their kids to soccer, football, or baseball camps for additional training either.
 

Manny

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My sambonim rus his own bussiness and heve his own dojang, he cahrges the following:

1.-Montly: $40.00 american dollars.
2.-Per examination 10th to 1th kup: $40.00 american dollars (it does include the colored belt).
3.-Black Belt examination: $440.00 american dollars (iclude embroiden belt and dojang's certificate).

Manny
 

Manny

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My sambonim rus his own bussiness and heve his own dojang, he cahrges the following:

1.-Montly: $40.00 american dollars.
2.-Per examination 10th to 1th kup: $40.00 american dollars (it does include the colored belt).
3.-Black Belt examination: $440.00 american dollars (iclude embroiden belt and dojang's certificate).

Manny
 

jthomas1600

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Maybe a little off topic: What do your students get with their belt tests? I notice it's not uncommon for schools not to charge. At our school each student breaks at least one board, they get a new built, they get a cert that's printed on high quality paper, and there are trophies handed out for some of the kids (for excellence etc.) and we generally have one or two visitors on the judging panel who I assume get a dinner or small gift. So to charge nothing would seem to be putting the school backwards 4-5 (I think that's about how many testing dates we have) each year.
 

dancingalone

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Maybe a little off topic: What do your students get with their belt tests?

A new belt and a nice certificate printed off parchment-grade paper. Black belts get a quality Shureido or Tokaido belt embroidered with their name in kanji. We don't always break on every test, but when we do I also absorb the cost of the lumber or tiles (no rebreakables here). I definitely lose money on the deal, but I prefer not to take money in for belt exams to avoid connecting the idea of revenue with promotions, at least in my mind. I would rather build in any needed profit into the tuition fees.
 

jthomas1600

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The reason not to tie testing to profit is to avoid the appearance that you're allowing people to test (perhaps before they are really ready) just because you need the money? I've not thought about it before. Is there more to it than that?
 

dancingalone

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The reason not to tie testing to profit is to avoid the appearance that you're allowing people to test (perhaps before they are really ready) just because you need the money? I've not thought about it before. Is there more to it than that?

I don't like nickel-and-diming students. "You're ready for a blue belt and to learn blue belt material. Um, that's $50 please." I'd rather make it easy and simple. It costs X to train here and that's it. The only reason schools charge all these additional fees instead of a single comprehensive one is because they don't want you to think about how much it really costs to train there. :) I exaggerate of course but you follow my logic I hope.

Not charging a testing fee also gives me flexibility. I can hold impromptu exams at any given point I please and not have to bring up the awkward topic of money, which can be a concern to families that have to budget their dollars.
 

auxiliary

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Ok some more things.

First, demographics plays a HUGE part in price point. Secondly, the price point of other activities in the area also play a HUGE factor. If parents are use to paying X amount a month for an activity then helps.

Now don't get me wrong. If you charge $65 a month and people would be willing to pay $85 a month for it, then why keep your price low?

I have seen instructors and schools do an "all inclusive" type membership. Includes, gear, weapons, classes, camps, testings, tournaments in a year and then just simply divided by 12. Now what's good for you are students are paying for all of that stuff, but then probably only 1/2 of them use it all.

What stinks is if they refer a friend they say it's $250 (Just picking a number) a month and that could turn people off a lot.

We start our programs with a trial. We meet with the students during their trial and go over all the options with them. We are 100% open with them and do not hide any costs. We let them know how much gear will cost, testing, and what not. This works well in case some students aren't prepared or out of town for testing then they're not paying for it.
 

dancingalone

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A conversation about pricing shouldn't take more than 30 secs. If it is like a car sales pitch inside the office where you're offered the chance to buy clear coat protection and an extended warranty, we're probably veering too far to a side that isn't advantageous for the student. Caveat emptor if your instructor comes off a bit like Alec Baldwin in Glengarry Glen Ross. A-B-C. Always be closing!
 

Daniel Sullivan

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Ok some more things.
Now don't get me wrong. If you charge $65 a month and people would be willing to pay $85 a month for it, then why keep your price low?
To maintain a cost advantage over your competition? To make it more affordable to more students? How about in order to resist the temtation to monkey with pricing simply because you can? Had the housing industry resisted that temptation, it might not be in the sorry state that it currently is.

People are willing to pay more now, but they may not later. If you keep your prices reasonable, not only will they be more likely to stick around when the hard times hit, they will also remember that you didn't gouge them in times of plenty. Martial arts, music lessons, ballet lessons, etc. are generally among the first things to go in a lousy economy. The more expensive you are, the more likely you are to be on the chopping block.

Keeping the price reasonable also means that extra fees, such as testing fees, won't seem so onerous.

Unless you are actually adding something worth twenty dollars a month don't raise your price twenty dollars a month.

Daniel
 

auxiliary

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To maintain a cost advantage over your competition? To make it more affordable to more students? How about in order to resist the temtation to monkey with pricing simply because you can? Had the housing industry resisted that temptation, it might not be in the sorry state that it currently is.

People are willing to pay more now, but they may not later. If you keep your prices reasonable, not only will they be more likely to stick around when the hard times hit, they will also remember that you didn't gouge them in times of plenty. Martial arts, music lessons, ballet lessons, etc. are generally among the first things to go in a lousy economy. The more expensive you are, the more likely you are to be on the chopping block.

Keeping the price reasonable also means that extra fees, such as testing fees, won't seem so onerous.

Unless you are actually adding something worth twenty dollars a month don't raise your price twenty dollars a month.

Daniel

I agree 100% that taekwondo is the first thing to go in a bad economy. Not only martial arts but anything that's an extra cost that is not needed.

But for us all of our costs went up. The rent went up, the price of uniforms/cotton is going up. There is less people buying so manufactures have to keep raising their prices.

We kept our prices the same from the years before and really focused on over delivering to the families and students. The last two years have been our best years of growth.
 

Daniel Sullivan

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I agree 100% that taekwondo is the first thing to go in a bad economy. Not only martial arts but anything that's an extra cost that is not needed.

But for us all of our costs went up. The rent went up, the price of uniforms/cotton is going up. There is less people buying so manufactures have to keep raising their prices.

We kept our prices the same from the years before and really focused on over delivering to the families and students. The last two years have been our best years of growth.
Those are legitimate reasons for raising one's price, but that was not what I was responding to in you're earlier post.

You had said:
First, demographics plays a HUGE part in price point. Secondly, the price point of other activities in the area also play a HUGE factor. If parents are use to paying X amount a month for an activity then helps.

Now don't get me wrong. If you charge $65 a month and people would be willing to pay $85 a month for it, then why keep your price low?

You were talking specifically about demographics, not about rising operational costs.

Daniel
 

harlan

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The TKD group we train with operates out of a rec center, which charges them $30/6 weeks for 2 2-hour classes/week. Testing fee is nominal...covers the belt. Buy your own gi.
 

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