Biggest Martial Arts Business Misconceptions (6 of 8)
If you have 50 or more Taekwon-Do students, or intend on having more than 50 students, you need to bite the bullet and start letting a third party collect tuition for you.
One of the ITF Taekwon-Do instructors I’ve worked with recently said,
“I would spend at least the first full week of each month in the lobby talking to parents and collecting payments. Many of the families wouldn’t feel comfortable leaving their payment with anyone other than me.
I also didn’t realize just how many of my students were past due on their accounts – 1, 2 up to 6 months! Yikes, I know! Now that everyone is setup on the autopay system, I can be in the classroom teaching more and focus on the students instead of the payments.
I know how much money will be in the school account and when it will be deposited. Needless to say my stress level has decreased!”
-Beth Oliver, San Diego, CA
When you have an autopay system set up to collect your tuition, you no longer have to worry about who has paid and who hasn’t. The billing is done automatically and you consistently and reliably get a deposit in your bank account twice a month for whatever is owed.
You no longer have to call all of your students to remind them that their tuition is due and have to hear all the stories about what happened last week, and if they can pay later, and don’t forget having to track down the parents who just drop their kids off in the parking lot and never come in the school. Drama, drama, drama. It also keeps most of your conversations with the parents from having to be about money!
When there is an autopay set up, it adds to the professionalism of your Taekwon-Do school. Because it automatically withdraws the money and your students are expecting it, they will prepare for, and make sure they have the money in the account to pay.
Additionally, with technology these days, people expect you to be able to bill them automatically.
One instructor I worked with who was apprehensive about getting set up with an autopay system told me that when she announced it, she had multiple students sigh in relief and mention that Taekwon-Do was the only check they wrote each month. Everything else in their life was done electronically.
You might also want to check your own bank account to see how widely used autopay systems are. Look at all your bills and you might be surprised to see how much you already use it. And if you don’t, I’ll bet your phone, electric, gas and insurance companies offer it as an option.
We started using autopay systems in the mid 90’s and have used most of the main players out there. There are many providers out there and if you have questions about them or are looking for a recommendation, feel free to shoot me an email at email@example.com and I’d be happy to share with you my thoughts.
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 firstname.lastname@example.org