Important Guidelines for Using Discounted Buyouts
Consider this strategy only if you can manage it carefully to avoid jeopardizing your monthly cash flow for short-term gains. This approach can be effective for a select few students each month to boost your gross revenue. However, limit it to no more than six students to prevent overuse and maintain a steady cash flow.
How to Implement:
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Contact the Student: Offer a significant discount on their remaining balance to continue training. Avoid quoting the price over the phone; instead, set up an in-person meeting for a more persuasive discussion.
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Present the Opportunity: When meeting, emphasize that only a few discounted buyouts are available. Be honest about the exclusivity—perhaps offer it to around six students, with a limit of three discounts to create urgency.
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Offer Payment Flexibility: If the student is interested but unable to pay the full discounted amount upfront, offer a 20-percent discount with a short-term payment plan. For instance, if their balance is $1,000 and they can't pay $600 immediately, propose an $800 buyout with flexible payment terms. Work out the shortest time frame for the remaining balance, ideally within two months.
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Target Audience: This strategy works well for students who are at risk of dropping out. It offers them a chance to settle their balance at a discount while providing you with additional revenue.
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Timing: December is an optimal time for this offer, as enrollments typically slow down and pick up in January. Use this opportunity to boost your revenue before the new year begins.
Remember, this discount strategy is meant to supplement your monthly tuition, not replace it. Adjust the discount rate based on your specific market conditions and avoid overextending this offer to maintain its effectiveness.
