Reality is Deceiving: The Importance of Tracking

Reality is Deceiving: The Importance of Tracking Stats

Introduction
Reality can be deceiving, which is why most martial arts school owners shy away from tracking their stats. For those who are not statistically minded, here is a straightforward set of numbers to track that will gauge your school's potential.

The Three Key Metrics

1. Tuition Per Student Per Month
This metric often causes great concern and confusion among school owners. In my book, The Truth About the Martial Arts Business, I explain that many martial arts professionals fear charging a fair price for tuition due to negative money beliefs instilled in them. The reality is, you can be the best or the cheapest, but not both. Charging less than $100 per month sends a signal to the market that you are not the best. By increasing your tuition from $80 to $100, you can instantly add $2,000 per month to your gross revenue if you have 100 students. Even if a few students leave, the increase will still result in significant additional income.

2. Number of New Students Per Month
Consistent new enrollments are crucial for growth. If you enroll at least ten new students each month at the new tuition rate, your gross revenue should increase steadily. Balancing high tuition with a strong influx of new students reduces administrative and management stress while maximizing rewards.

3. Dropout Rate Per Month
Tracking dropout rates is vital. Measure retention monthly and aim to keep your dropout rate under 5%. Start by calculating the total number of active students at the end of the previous month, add new enrollments, and then divide the current active student count by this total. The difference between this percentage and 100% is your dropout rate. A low dropout rate ensures that your school will grow.

Summary
These three numbers are easy to calculate and have a significant impact on your school's growth. Low tuition leads to high management challenges and low rewards. Low enrollments increase stress, while a high dropout rate signals a dying school. By keeping enrollment, tuition, and dropout rates in check, you can ensure your school's success and sustainability.

Conclusion
To grow your martial arts school, focus on maintaining strong and consistent tuition rates, new enrollments, and low dropout rates. By tracking and optimizing these metrics, you can create a thriving, profitable school.