This audit can provide a clear picture of how much tuition you are actually collecting each month per student. Here’s a step-by-step guide:

1. Calculate Total Tuition Collected

  • Components: Include paid-in-fulls (PIFs), registration fees (after deducting uniform or other hard costs), and monthly billing (after deducting refunds and any billing/credit card charges).

2. Determine Total Student Count

  • Start with: The number of students on January 1st.
  • Add: The number of students enrolled over the next 12 months.
  • Example: Starting with 100 students and enrolling 10 new students per month results in a total of 220 students for the year.

3. Calculate Annual Tuition Value Per Student

  • Formula: Divide the total tuition collected by the total student count.

4. Calculate Monthly Tuition Value Per Student

  • Formula: Divide the annual tuition value per student by 12.

Example Calculation

Using real numbers to illustrate:

1. Last Year's Average Monthly Collection

  • Students: 80 paying $133 per month.
  • Additional: 30 students cashed out.
  • Gross Monthly: 80 x $133 = $10,640.
  • Expenses: Approximately 10% for billing fees, refunds, etc.
  • Net Monthly Billing: $9,576.
  • Annual Net Billing: $9,576 x 12 = $114,912.
  • Total Shorts: 30 students @ $600 each = $18,000.
  • Registration Fees: 105 students @ $199 = $22,885.
  • Annual Paid In Fulls: 15 @ $999 each = $14,985.
  • Total Tuition: $170,782.

2. Total Students Last Year

  • Starting Students: 100.
  • New Enrollments: 120 (10 per month).
  • Total: 220 students.

3. Annual Tuition Per Student

  • Calculation: $170,782 ÷ 220 = $776.28 per student per year.

4. Monthly Tuition Per Student

  • Calculation: $776.28 ÷ 12 = $64.69 per student per month.

Addressing the Low Monthly Tuition Value

Realizing the average tuition per student is lower than expected can be alarming. Factors like family discounts, cancellations, barters, and students slipping through the cracks contribute to this lower value.

Boosting Tuition with Renewals

Many schools lack a solid renewal plan. Implementing a Black Belt Club or similar program can significantly increase revenue.

Revised Example with Renewals

  • Additional Revenue:
    • Renewal registrations: 24 @ $299 = $7,176.
    • Renewal PIFs: 5 @ $2,999 = $14,995.
  • New Total Tuition: $170,782 + $7,176 + $14,995 = $192,953.
  • New Annual Tuition Per Student: $192,953 ÷ 220 = $877.05.
  • New Monthly Tuition Per Student: $877.05 ÷ 12 = $73.08.
  • Increased Net Tuition: $22,171.

Implementing a Black Belt Club

If you have not yet launched a Black Belt Club, the potential revenue increase provides a compelling reason. Many schools have transitioned to offering Black Belt Club memberships for an annual one-time payment of $500, adding significant revenue.

By following this audit process and implementing a renewal plan, you can increase the financial health of your school and better understand the true value of your tuition collections.