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How effective are different pricing structures for martial arts studios
Contracts can be both good and bad for the student. It can encourage them to keep coming to class for sure, but if they really don like it anymore, it is just another expense they pay until the contract is over even after they have stopped going. Students who take a break tend to not come back. life gets in the way. A contract is at least one incentive for the student to come back to class. Overall contracts are not evil, but for those who drop out they are perceived to be. pdavis Mar 8 '12 at 15:23
Advantages: Possibility of higher training quality (since many of the students commit, they tend to work harder. If the instruction is good, the training quality goes up because those that commit do so for longer meaning higher level students). Reliable training partners.
There are exceptions to the rule in every scenario, and many that offer monthly rates also offer perclass rates which combines the two advantages and disadvantages somewhere in the middle.
While easier to leave does usually mean easier to not come back, contractual billing can lead to extremely bad press for a dojo and is usually not a good sign. Many of the contract billing services for martial arts schools have horrible reputations and lead to more threats from lawyers than happy students.
Remember, every choice has a consequence; choosing a specific type of payment plan can have both good and bad repercussions. If at all possible, schools should offer all three at staggered rates this way, you can maximize your benefit, put the consequence of the choice upon the shoulders of the client,[url=http://www.floware.fr]sac michael kors[/url], and you'll have an easier time managing threats and have a better chance of winning any small claims you choose to pursue. A great example of this is:
Assume a monthly rate in line with your environment (other teachers in your art locally). If the market is at $100 a month, make this or slightly higher your monthly rate. Now, figure a two month termination fee ($200, equivalent to charging for first and last month). Divide this by 12 to get $16.66. Subtract this from $100 and round back up to the nearest $5, which gives you $85. This is your contract rate. This way, you're offering a nontrivial (15% discount), but making clear up front that there is a termination fee, and if they plan to leave, it might be better to pay monthtomonth. For your perlesson rate, figure out how many lessons your students will be attending each week for an average (4 week) month. My students, for instance, attend 2 classes a week, so about $12.50 a lesson (in this case). Of course, we have a convenience factor to this, so we raise this rate a nontrivial amount (I would round up to the nearest $10, so each lesson would be $20). By doing this, you're creating a fair and scaled pricing schedule, and offering them an advantage to committing longer.
To add, the dojo I attend works on a "per belt" basis, which is three months per belt (or four months, for white belt). It allows for many of the advantages of both the monthly and the contract (though there is no contract), because of the slightly longer commitment (lowering attrition). Additionally, I seen dojos charge on a monthly basis, but only allow 2 classes per week (and charge for each additional), effectively nullifying the perclass savings. So always ask about their structure and class allowances. Shauna Apr 10 '12 at 17:22