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Thursday, 27 May 2010

Pay as you go OR Paid up front -

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Hello and welcome to the choreographytogo Instructor Newsletter
It's been hot, hot, hot this week and as the UK basked in the beautiful sunshine what is it doing to our class numbers? Judging by Facebook many Instructors classes on Monday looked like their numbers were halved, my numbers were definitely down during my morning classes and of course we are now faced with the WORLD CUP and its impact on fitness classes, so is it really time to look at limiting the amount of pay as you go classes and look seriously at paid up front courses or even operating a monthly subscription to your community sessions. Whenever this issue comes up I always get a huge in box from instructors who run very successful businesses as pay as you go,. so possibly, changing a pay as you go class to a paid up front class is not the way to go. Byouut any new classes that you start then I seriously think you should consider running them as courses or monthly subscriptions. 

Here are all of the pros and cons I could think of to help you make a strategic business decision when setting up new community classes or Bootcamps. But first let's look at Football. If you want to see when England plays or any other team check out http://www.fifa.com/worldcup/matches/index.html Last world cup I remember having 3 and 4 people turning up instead of the usual 30, my classes were pay as you go so a nightmare, what with the snow at the beginning of the year, hot days and Football is it time for a rethink?......

I have run pay as you go community classes for the last 23 years and the income has always been up and down. You take the good with the bad and that's how it's always been. For years I didn't have holidays, I never had a week off or a break and, of course, suffered badly during the summer and bad weather. I was a slave to my pay as you go community classes and they controlled me. Recently, there has been a mind shift  and many trainers now are realising that it's smart to get clients to commit up front to a course of classes. You run your business rather than your business running you. 

So, I know many of you who run successful businesses may not agree and as I have said I don't think you can change a pay as you go into a course but if you are planning new ventures this summer at least way up the pros and cons. All of my new community classes including Fitness Pilates Bootcamp, will be run in 4 week courses no exception. I would love to get your views and opinions so please do post on the forum or my Blog http://Rachelinfitness@blogspot.com


Running classes in courses/pay up front
1.You get all of your money up front in one go enabling you to pay your room hire fee and know exactly what your profit margins are.
2.Commitment - Customers paying up front are committed and will think twice about not coming or cancelling as they have already paid in advance.
3.Time management - You can schedule your courses however it suits YOU. e.g. you could run courses during term time and have the holidays, or run 4 weeks on with a week of in-between courses. Running on going classes every week can be very very draining.
4.Goals Orientated - Great for your marketing...In 4 weeks you will...... Drop a dress Size..... or Lose Inches or....Strengthen your Spine or whatever it is your class goals are they can easily be measured in a shorter time frame.
5.If it 's 100 degrees or snows or football is on. You have already been paid and it's up to the customer to ensure they turn up regardless.
6.You can budget more effectively for tax, bills and business planning.
7.Makes you IN CHARGE of your business. Customers are more accountable to you as they have paid up front, you have a clear set of terms and conditions stating your policies and procedures.
8. You can guarantee results if you know someone is coming every week for a set amount of time.

Running classes as pay as you go

1.Some customers work shifts or cannot commit to attending a class every week.
2.Many people don't like to commit but will still come most weeks - therefore this can be a selling point.
3.Weather/What's on TV/Cinema all have a bearing if customers turn up or not so income is up and down.
4.Cover - It's difficult to have time or weeks off.
5.Lack of cash - These days people don't have so much cash rattling around in their purse , every thing is paid for by card.

If you don't want to keep running courses then you could always do monthly standing orders so if you run several classes in one area then offer a monthly package for a set amount and advertise the customer can cancel at any time.

Ideas for Summer Courses

So if you are sold on the idea of kicking of some courses how about these for ideas:
1.Outdoor Bootcamp - Everyone is doing it! Find a park and get stuck in. I've written tons about this over the last few years so what on earth are you waiting for?
2.Bootcamp for softies - There is a huge market who don't fancy a hard core, kick ass Bootcamp so what about Bootcamp Lite or Bootcamp for Softies or Beginners Bootcamp? Great selling point and USP.
3. 1 week intensives - A class every morning/morning or evening for 5 days on the run - Bikini Bootcamp together with a weeks detox diet plan.
4.Fitness Pilates Package - 1/2/3 or 4 week Intense Pilates course with a diet plan

Let me know what you think
Love RAchel xxx


2 comments:

  1. My class numbers were half this week also with the sunshine, and who can blame people, we hardly get any so you have to make the most of it. I have some of my classes run as courses - Pole Dancing - 6 weeks at a time and Bootcamps. I also have monthly memberships and I have pay as you go. It seems to be working now but its taken a while and a lot of hard work. Zara Groves

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  2. Hey Zara How are you are you coming to Slammin Manchester x

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