How do you know how much to charge for Taekwon-Do classes?
The answer is YOU DON’T. THE MARKET DOES.
The problem is that you and I both know that you’re not going to go out there and do the market research to determine what you should be charging. On top of that your ability to determine what to charge is handicapped by what you think you already know about your target market, by your own views and opinions about money and what instructors should or shouldn’t charge and finally, you are handicapped by what you are comfortable with charging or asking for.
None of that is an accurate representation of what Taekwon-Do lessons are actually worth. If you asked your Black Belts (or their parents) to put a value on what they’ve earned, accomplished, learned, overcome, worked through and developed themselves in on their way to becoming and Black Belt and beyond, you’ll find that they can’t put a price on what they’ve gotten from your training.
Now that doesn’t mean you can go out and charge outrageous amounts of money, but you should keep that in mind as you set your prices.
The average successful school in the U.S. charges $100-$150 per month for a basic membership including classes twice a week. Compare that with 93% of ITF Taekwon-Do instructors who charge less than $100 per month. Many of whom are charging the same prices that they paid as students 20, even 30 or more years ago.
Let’s take a trip down memory lane shall we?
Here are the prices of a few items back in 1974 compared to now.
- Item 1974 2014 % Increase
- Stamps $0.10 $0.49 490%
- Bread $0.28 $1.40 500%
- Milk $1.39 $3.67 264%
- Gas $0.53 $3.34 630%
If your prices are anything near what you paid when you began training, or what your instructor said you should charge for some arbitrary reason, then it’s time to make some changes.
Most people set price points for their service or business based on what others in the area are charging, or even worse, what their instructor used to charge rather than what the market will bear… and by now you should know that is insane!
Another place you can look for price points are other activities that your target market participates in. For example you could look at other sports, music lessons, etc. I have to pay $155 a month for piano lessons only once a week for an hour and my daughter takes half hour harp lessons once a week for $125 a month.
If you’re not in this price range then, as I said before, it’s time to join us here in 2014 and make some changes.
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 winning 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