Archives for September 2024

151 – From Cheap To Premium: The Poison Of Low Pricing In Martial Arts

Breaking down the price barrier: Are your martial arts tuition fees simply too cheap? Are you undervaluing your classes? There’s poison in the pricing, and it might not be what you think.


IN THIS EPISODE:

  • The stigma surrounding martial arts schools that charge premium prices
  • The Myth of the “McDojo” label often given to successful martial arts schools 
  • Overcoming the mindset blocks around martial arts tuition fees
  • How to charge your worth and price your martial arts classes to represent it’s true value
  • And more

*Need help growing your martial arts school? Start Here.

 

TRANSCRIPTION

Hey, it's George Fourie. Welcome to another Martial Arts Media™ Business Podcast. But today I want to talk about the poison in pricing for martial arts classes, for martial arts tuition.

Are martial arts classes just way too cheap? Are martial arts school owners charging way too much for their classes and tuition? Are they just ripping people off? Are people getting the value for what they are paying? Or are they the dreaded controversial McDojo if they charge too much? 

All right! Lots to unpack here. I will dive deep into this, probably ruffling a few feathers in my take on this, but it needs to be said and unpacked. So, let's do this.

For show notes, for the transcript of this episode, and all links mentioned, go to martialartsmedia.com/151. Let's jump in. 

If you've listened to my podcast for a while, okay if you haven't, but we talk a lot about marketing, lead generation, and getting and attracting new students for martial arts schools. That is the primary conversation because I guess in a way, I'm a little bit known for it.

People always come to me for that. But here's what's interesting: the first conversation that I had when we onboard martial arts schools into our Partners program was not about any marketing. We're always talking about offers and we're always talking about pricing.

It's probably the conversation that's valued the least, but it makes the biggest impact because when we fix this in a strategic way that's without selling your soul and all these limited negative beliefs that come up, providing good value and charging a premium, good premium rate for what your classes are worth.

It makes a huge impact because martial arts school owners come up with the idea that they need all these hundreds of students to hit their income goal to have a decent life and be able to provide their martial arts services without having to have a job, a side job to keep the dream alive, etc. 

You know, for martial arts school owners that want to do this full-time. They have this idea of all these students they need and all of a sudden, we half that by just tweaking the numbers, changing the terms, changing how we go about all this.

Now I want to address a few things that come up with us. First up, I probably want to say that there is no wrong and no judgment in any martial arts school owner who provides a great service, and loves what they do. They serve the art of what they do and they want to share that and maybe they just want to do it part time and maybe they just want to keep it as a hobby.

That is all awesome and great, but… it's always a but, right? What I don't agree with is throwing rocks at martial arts schools and labeling them McDojo or whatever simply because they are more successful than said martial arts school owner, right? 

It seems to be a common thing that schools that charge a premium get hated on and just because they are more successful than someone else, automatically they just get labeled as a scam, they're ripping people off, etc. 

Now, I've been working with martial arts school owners for 10 plus years, 12 plus years, and I can tell you that from my experience, I have yet to see that McDojo whatever people are getting ripped off, all the guys that are charging the premium prices deliver the best service, they got more time to devote to martial arts, they got more time to spend with their students, and they can provide so much more value because they are charging a premium price. So, I've only seen the opposite.

I've never seen this belt factory in all these terms that are being discussed. Do I say that they don't exist? Of course, they probably exist. Of course, some people probably water down their martial arts.

But I think it's so quick to just throw this label and throw others under the bus for them to be successful. Now, I run Facebook ads to promote what we do, and I've got a free training, a free 15-minute training, where we go over The School Scale Plan™ and this has helped a bunch of our clients achieve a lot of success. I share it, and it's a free 15-minute training.

And if I will share it below, there is also an offer for two of our best training that we've packaged together. So, it is present, but the training is not about the offer, the training is 100% free. Don't insult the training before you know, just because there's an offer, there is it's okay to buy stuff and invest in stuff.

If it is worth your while, it's also okay to ignore it if it's not right. So, I'm running ads for this training that we do. And I find the comments really, really interesting.

It's very telling why a lot of people are successful and others aren't. If this is you and it rubs you up the wrong way, you can hate on me, or you can maybe take it to heart. And maybe it's something that we should address because I'm not perfect.

I know nobody's perfect. We've all got room to learn. We've all got room to grow.

I'm a guy who invests a ton of money and resources into coaching and improving myself on a day-to-day basis, whether that's with skills for marketing, whether that's into my martial arts, whatever it is, I invest a lot of time and money to be that 1%, 2% better on a day to day basis. 

So, there's this constant evolvement of just improving myself and you as a martial artist, I'm sure you're the same, right? So back to the comments on my ads. Now, for me, again, there's a lesson in that because can I just improve my ads and word it in a better way that communicates the value and what we are trying to do?

But then there is just the poison in the pricing, and this attitude that it's somehow noble to be poor. It's somehow noble to be the cheapest. And the minute anybody charges a premium, it means that they are a McDojo and ripping people off.

I think it's a lot of garbage. I think it's a lot of lack of personal responsibility can you provide more value? Can you provide a better service by charging more fees? Because how can you have all these instructors? How can you train your instructors? How can you have the best equipment? How can you invest in it as a business if you are the cheapest? Price in itself has value. I mean, you can't tell me you're the best and the cheapest.

Nothing in the world works like that. If you go to buy a Mercedes versus a Kia, they're both great cars, but which one is better? Well, again, probably a preference, right? But the price in itself does carry a lot of value to that. 

And more price means you can deliver a better service because if you can't make the rent and you can't pay for the mats and you can't pay for your training and you can't pay your staff, then nobody's showing up 100% to deliver the best that they can. Because there are so many other commitments taken up in life.

Again, if that's what wants to be done, there's nothing wrong with it. Just don't hate on the guys who are investing in themselves, investing in their staff, investing in their equipment, and building a business so that they can impact more people. 

I mean, if martial arts is about impacting people, wouldn't you want to impact more? I mean, that's the thing that drew me to martial arts was the impact, seeing what was happening when my son was on the mats and training and seeing how much impact martial arts has for young people, for people, for me at the time as well, it changes lives.

And I wanted to be part of that. I wanted to be part of martial arts changing lives. Can we get the message of martial arts across to more people? So, I see this war in the comments of “I charge $4 a class. At least I'm honest.” 

I'm like, at least I'm honest. Is this somehow a link to honesty and charging what you're worth? Are we maybe just underselling ourselves and we don't know how to value what our martial arts classes are about? I want you to think about that.

I want you to ponder on this. Now, what is the solution? I don't want to make this whole podcast about a rant and the downside. Let's flip the lid.

What if we do want to raise our prices? What if we do want to be part of the solution and offer a premium and offer classes at a sophisticated rate? Before I go there, I'll just loop back into one thing. The biggest issue, let's say we're trying to fix this issue of pricing. The first issue that we have is comparison.

I frequently hear martial arts go on to say, well, we only have the hall, etc. Bob's martial arts next door has full-time facilities so they can charge more. Well, maybe, maybe not.

But where is the true value of martial arts coming from? Where's the true value coming from? Is it the equipment? Is it the facilities? That gives a higher perceived value and it's nice to be in the owned facilities with the air con and nice mats and clean toilets versus the hall, right? 

So, there is that. But where is the true value? The true value of martial arts lives in the mind of the person who is starting. And that could be different for anyone because it could be, I want to learn self-defense, I had something bad happen and I want to learn self-defense.

So, there's a bigger urgency for me. I have a child that lacks confidence and wants to be better. Everybody wants the best for their children, right? Now, if you are the expert martial arts school owner and I bring my child to you and you discover that this is my real need because I might not tell you, but you're the expert and you realize that I have a child that I'm concerned about.

I'm concerned about their well-being, their confidence, how they're going to go through school, how they're going to go through life. And you can articulate that problem better than anyone else and then show me exactly the process that you take your students through. 

And you could tell me success stories of your other students that have gone through the same training and how they become role models in their community or, you know, improve at their school or whatever the success story is.

I'm not asking about price anymore, right? I'm not going to say, well, XYZ martial arts school charges five bucks less or only two bucks a class. No, because you're the expert, you're the authority. I want to give you money, right? Because that's where the value lies. If you want to compare, go and do a real comparison.

I live in Australia. I just enrolled my daughter in gymnastics. It was a six-month waiting list.

She gets only one class a week and it works out $280 for 10 classes, so $28 per class. My daughter goes to swimming. That's kind of the equivalent, right, for a 30-minute class.

So, if you want to do a real comparison, go look at what people are charging for essentials, well, in Australia, essential skills are swimming, and gymnastics, it's a great sport, but think how essential martial arts is for kids and their well-being. And I do feel that people should charge the equivalent. So, let me turn this into a lesson.

How can you look at improving your pricing? Well, question that voice inside. When you raise your price and you try and push up the number, how does that make you feel? What is the answer that you can come up with? How do you justify that to yourself? 

Because here's the thing, this is the real conversations we have, right? It's not about the martial arts itself. The real hard conversations that we have in our Partners Onboarding Program are the beliefs, the conversation you have about yourself, about the value that you provide to your students.

So, question that. Maybe you need someone like a coach to speak to. If you don't have one, you can reach out to me on Facebook.

I'm happy to have that conversation with you and really unpack that and see how we raise your perception about what you deliver so that you can charge a better premium. So why do we do this first? Because if you want to run ads and you want to increase your student base, we can't do that if your pricing is too low. 

If there's not going to be a return on investment because you've got charging, paying money for ads and you've got super low fees and the costs of the ad exceed your pricing it's not going to work, right? So, to make sure that ads are profitable, this is the conversation that we have first and foremost.

What can you do to fix things? Question your beliefs. You can't hate successful school owners and then expect to magically become one. You can't hate on them for making money and then somehow feel that your identity will adapt and become one, become something you hate, right? 

So, the conversation to have is about how you fix your perception and belief about money and about what value is. Change that conversation in your mind first because we can't grow into what we hate and what we despise.

And here's the beauty, you could change your price tomorrow and you don't have to rip off the band-aid, you could just start new pricing with new students, try it on, see how it feels, present it to a few people, and if you get an objection, the question to ask yourself is are you getting an objection because the market says it's not the right price or because you don't believe, you still don't believe that it is the right price and your belief is just transferring over to them. 

On the flip side, you just need one student to say yes, two students to say yes, and all of a sudden, you've changed your business, you've changed the future of your business, the profit of your business, which means you can invest more into your martial arts training. If you want to take that trip to Thailand and go train, Brazil, wherever it is, or Japan, and you want to invest in training, now you can.

You can employ that instructor instead of getting them to just be a backup instructor or assistant instructor for free now that you can pay them. You can do all these things to move your business forward with simple price economics and you know what, your students will probably thank you for it and feel that they are getting way more value in return. Anyway, hope that helps. See you in the next podcast. 

 

*Need help growing your martial arts school? Start Here.

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