How does a Mile High Karate Martial Arts school Business generate revenue?

For more information about growing your Martial Arts Business: http://www.ExtraordinaryMarketing.com

(PRWEB) August 15, 2004 -- How does a Mile High Karate Martial Arts school Business generate revenue?

For more information about growing your Martial Arts Business:

http://www.ExtraordinaryMarketing.com

With my Mile High Karate Martial Arts school Business in Denver (9 locations) I have spent over 20 years tuning and tweaking to hit an optimum combination of volume, revenues, and profitability for our Martial Arts school Business.

The total revenue of a Mile High Karate - Martial Arts Business will be affected by several factors. In simple terms the revenue flow ends up being a function of:

New Enrollments X Tuition Rate X Retention Rates X Renewal Upsells X Cash Ratio

To simplify this picture the average path that a student may take through the business side of a Mile High Karate Martial Arts school Business.

For more information about growing your Martial Arts Business:

http://www.ExtraordinaryMarketing.com

First. The family is exposed to Mile High Karate - Martial Arts Business in one of a variety of ways. They may first come in contact with us by responding to one of our regional ads in the Rocky Mountain News or Denver Post from our Infomercial or, they may be responding from a localized ad such as direct mail or val pak, or often they are either a participant in one of our many community outreach programs or are referred by an existing student. Regardless of source they enter our introductory process and hopefully (35%-65% of the time) end up enrolling in our trial enrollment" which is for a year.

They either pay an average of $259 to enroll then $159 per month (our Martial Arts school Business currently range from $139 to $189 per month for this program) or, they pay one payment averaging $1,700 (there are small family discounts for a 2nd and 3rd family member of 10% and 20% respectively.)

Second, The student enters our Orientation class where they train twice per week through Orange Belt if accepted to Master Club, or until such time as they join the Master Club if at orange belt or beyond. During that time they are being prepared for and evaluated for our Black Belt training. Prior to testing for Gold Belt (at the end of the eight to twelve weeks) they are evaluated for -- and, if they qualify offered the opportunity to join the Master Club (a higher level of training which takes them to Black Belt and Beyond) or our Leadership program.

At that point if they join Master Club (which 35-50% should do at this point) they will either pay $500 down and have an approximately $100 increase in their monthly payment or will pay one payment averaging $9,800 (again with 10% or 20% 2nd & 3rd family member discounts)

For more information about growing your Martial Arts Business:

http://www.ExtraordinaryMarketing.com

To go back to the formula above:

1st.    We target 20 or more new enrollments per month.

2nd.     The initial enrollments is $259 down and $159 per month.

3rd.    We target 4% or less monthly drop-out rate.

4th.    Our renewal upsell goes to $259 per month or, $9,800 cash.

5th.    We target 25% - 50% of Renewals to be cash.

These factors combined add up to a $50,000.00 or more monthly gross revenue from a Martial Arts school Business with 20 new enrollments per month.

Evaluate your Martial Arts school Business based upon volume, revenue per student, and overall student service as determined by renewal rates and retention rates.

For more information about growing your Martial Arts Business:

http://www.ExtraordinaryMarketing.com