After my many conversations with instructors over the last few weeks it has come to my attention that most instructors either don’t know the nine critical income streams that every school should be taking advantage of, or they just don’t relate to these items as income streams.
The other danger here is that because we’re talking about money here, that you’ll mentally check out halfway through the article because you think doing these things are for the kick-n-play schools. I promise you that you can take full advantage of all of these revenue streams without sacrificing anything to do with effectively teaching the art of Taekwon-do.
In fact, these will actually increase your customer service and provide opportunities for your students to grow in Taekwon-Do.
It’s important that you don’t just read this article and say, “Oh, I do that”, or “I’ve done that.” I say this because I’d bet that most of you have done or are doing at least some of these, but you’re not doing them systematically, intentionally and profitably!
I invite you to take another look at them and see how you can utilize these opportunities on a regular basis in your school. I actually have the staff at Karstadt Taekwon-Do look at how they can take advantage of these nine revenue streams everyday to that it’s fresh on their mind.
Over time, as you become familiar with these you’ll begin to see opportunities all around you. You are not limited to just what your members are paying in tuition!
I’ll say just a little bit about each one of these here because I could write an entire article on each one of these themselves. The important thing here is to begin thinking about all of these everyday. Even if there’s nothing to do about it now, you’ll be amazed at the ideas you come up with.
Here are the nine critical revenue streams every instructor should know and utilize:
1. New Enrollments
How many new student appointments do you have scheduled for this week? Unfortunately most instructors would love to bring in new students but don’t put the mental energy into it because it’s easier to just teach great classes an hope that will bring in the masses. This is where you want to develop your marketing prowess and create systems that will bring in new members consistently.
This one is a major addition to your bottom line. With a well executed upgrade program (something that you can offer that compliments Taekwon-Do training and provides invaluable life skills and training) you can charge anywhere from $30-$50 per month more for tuition.
3. Paid In Full
If you use contracts, then you can offer students the opportunity to pay off the rest of their contract or agreement in full for a 10%-20% discount depending on the length of the agreement. Even if you don’t use agreements, then you can offer something like a 10% discount for pre-paying the next six or 12 months. This is a quick way to add some cash flow during a slow month. Caution! Do not do this with more that 10%-20% of your members. If you do you will collect big numbers right off the bat, but will be left with very little monthly cash flow.
Most Instructors think that they need to bring someone other than themselves in to do a seminar. NOT TRUE. You could easily offer a quarterly seminar on sparring, breaking, patterns, competition, or something fun like weapons, etc. Get 30 people together for a 3 hour seminar for $30 and make $900 in an afternoon.
For some reason this is a big one that many instructors miss. Your students should be ordering their uniforms and sparring gear through you! Many instructors send students online or somewhere else to order their own stuff and are handing profits away to some other company because why? Is it too much of a hassle to fill out an order form and place an order once or twice a month? You can also offer shirts, warm-ups, hats and other things with your logo on them. People want to be a part of something and already trust you. By providing this service for them, you are making it convenient for them and earning extra money.
6. Graduation Fees
Some instructors charge graduation fees for gup testings and some don’t. Some charge a lot and some just a little. There’s no right answer here and it’s all up to you. However when you think about if you should charge and how much you should charge you need to take into consideration things such as your preparation. How long does it take for you to get all the testing forms in, to print the certificates, the cost of the paper, the ink, belts and stripes. Consider your time. How much is an hour of your time worth? How long is the testing? Are you paying instructors to be there or do you have people assisting? Are supplying breaking materials? I could go on and on, but every school does testing a little differently and you need to determine what is right for you.
This could be anything from summer camps to buddy nights and sleep overs. It allows students to interact in a social setting and develop friendships they might not have developed otherwise. It also is great for student retention. When is your next event?
8. Birthday Parties
These should be offered to every kid in your school. You can charge for them do it free. I know two school owners who do zero advertising and focus only on birthday parties. They offer them for free and have at least four a month with 15 kids each. That’s 56 new children coming in their doors, experiencing Taekwon-Do and leaving excited about training with a special offer to join in their hand. They easily get 10-20 new students a month. Find out who has birthdays in the next two months and get started!
9. Delinquent Tuition
This is a BIGGIE! Most instructors either don’t pay attention to this or they intentionally ignore it because they don’t want to deal with it. You must be on top of this. Letting this slide is like letting two or three people shoplift $100 worth of merchandise from you every month! If most instructors told the truth, you’d find that the money they lose every year because of this is in the thousands of dollars. Give yourself a raise this year and collect the money that is owed to you!
Write these down somewhere you can see them everyday. These need to burned into your memory. The next time a parent brings up a birthday, you can immediately let them know what you offer. When you hear someone complaining about what they’re doing with their kids this summer, offer them your summer camp and tell them to invite their friends. When you hear someone say, “Wow ______ could really use this!” Get ______’s information and schedule an appointment.
With these on your mind, you’ll find yourself seeing opportunities where none existed before!
About the Author:
Mr. Karstadt is the founder of 1 TKD Consulting and owns the longest running ITF Taekwon-Do school in Arizona, Karstadt Taekwon-Do in Phoenix, AZ with his father Master David Karstadt. He has been training since 1984, earned his Black Belt at the age of 8 and is currently an internationally renown intstructor teaching the culture, discipline, leadership and business skills of Taekwon-Do in classes and seminars to Instructors around the world. He has been a member of eight U.S. Taekwon-Do Teams and has traveled to 14 different countries competing in Taekwon-Do. He has won numerous medals at the World Championships and in international competition, most notably winning the 2004 World Championships in South Korea with two gold medals and the Men’s Team All Around Trophy. Mr. Karstadt currently resides in uptown Phoenix, Arizona with his wife and three children. Mr. Karstadt can be contacted by e-mail at email@example.com