Posts Tagged ‘Scarcity’

FREE Lessons?

Members can download the Halloween party invitation and this months ads in the members' download area.

Okay, let’s talk about giving away free lessons for a moment…

I’m not a big fan of FREE lessons, except for adult classes (I always offer the first class free – it’s a great no-pressure way to get busy adults into your school). The thing is, if you give something away for free all the time, it cheapens the perceived value in the potential customer’s eyes.

That’s why I limit guest pass distribution to students and staff (think “scarcity”). This is just my own personal preference; however, time and experience have proven this to be a wise approach.

So why is this month’s ad giving away free lessons? Because, every so often I like to advertise “an offer they can’t refuse.” How many moms are sitting on the fence right now about starting their kids in martial arts, that a few weeks of free lessons won’t convince to take the plunge? A bunch, I’m sure.

And, how much do you think your students will want to tell their friends to come in and try classes, if they can tell them, “It’s free until October 31st?” Who doesn’t want to share a good deal with their friends?

Here’s the thing – free offers are good when they are used properly and in small doses. There’s a good reason why top marketers and copywriters say “free” is the most powerful word in marketing. As long as you don’t let “free” become the overall perception of value for your services, a little bit of “free” every now and again is a good thing.

Now, here’s a tip for how to handle people coming in for their free classes during October:
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Summer Intensive Kids Camps

It seems that school owners in some areas are experiencing difficulties in filling their summer camps this year. Whether this is due to the current economic conditions in those areas, or due to waiting too long to start advertising their camps (I suspect the latter), there’s always a way to salvage these situations to make the best of things.

Back in 2006 at around this time of the year, I was facing a major crisis in my school. Sky-high fuel costs were causing a major budget crunch for most families in my area, and as it turns out our community was one of the first to show signs of the mortgage fallout. Bottom line was, only about half of my after-school karate kids were staying through the summer, and I was facing a major budget crisis of my own if I didn’t make up that income fast.

So, I borrowed an idea from another instructor and decided to hold “Summer Intensive Training Camps” in my school. I posted a description of how this works in the forums last week. Here’s how you do it: Read the rest of this entry »

Want To Make More? Spend Less!

During periods of economic slow-downs and recessions, the school owners who are able to spend less while still maintaining business as usual are the ones who prosper.

Notice I didn’t say “survive” – just being in the game to survive runs contrary to the entrepreneurial mindset. If your only goal is to survive, then I suggest you quit now… because when you have self-limiting goals and no self-belief, it’s a sure formula for failure.

True entrepreneurs use setbacks as opportunities for innovation, which is why you have to focus on prospering – it puts you in the correct frame of mind to find the opportunities overlooked by everyone else.

Don’t Dwell – Just Implement

Now, I don’t want to spend a whole lot of time on cutting back, because it puts you in a scarcity mindset if you dwell on it too long.

However, here’s a short list of things you can do to save money this month… and in the coming months and years as you grow your school:

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Pricing Strategy #1: Applying the Law of Supply and Demand

You should be aware that when a service is not a commodity (easily copied and mass-produced), it is naturally in higher demand and worth more. Our services are unique because very few people make it to black belt and even fewer decide to teach. Read the rest of this entry »