Today’s blog comes from one of our amazing Satori Business Success Coaches and company CEO, Dave Chamberlain.
Last week we talked about the importance of tracking your stats and how each and every bit of information can help you see improvement and shortcomings within your martial arts school business.
In addition to the stats I listed (see previous post), our Kovar’s Satori Academies have also track average revenue per student, which is calculated by dividing total revenue by your student count. Tracking this number helps ensure nothing falls through the cracks in revenue collection. For example, if your tuition is $159 per month, but your average revenue per student is $120, you need to inspect to find out why there is a $39 dollar difference between your tuition amount and your average revenue per student collections.
Next, we can then track the cost per student, which is calculated by dividing your direct costs and operating costs by your number of students.
And finally, we track the net profit per student, which is calculated by subtracting the cost per student from the average revenue per student. Please see the chart, below.
|Jan||Feb||Mar||YTD||Q1 - 2015||YOY|
|Avg Rev/Student||$ 133||$ 137||$ 130||$ 135||$ 134||$ 1|
|Avg Cost/Student||$ 95||$ 94||$ 96||$ 96||$ 100||$ (4)|
|Net Profit/Student||$ 38||$ 43||$ 34||$ 39||$ 34||$ 5|
We track these three metrics because it brings these dollar amounts to lower values that we can more easily wrap our heads around. However, these numbers - and really all stats - are only valuable if you compare them to past results for context.
We learned several years ago to look at quits by belt rank. This can be an excellent method for seeing trends occurring in your school. We had an academy with the largest Lil' Samurai program in our eight schools that suddenly started to lose Lil' Sams from their program, having noticed the drop in the Quits By Belt Rank report. When we approached the school with what we found, they admitted they had swapped instructors and now had someone teaching the Lil' Samurai program who clearly was better with adults than with children. Tracking quits by belt rank allowed us to identify and correct an issue that we might not have otherwise seen. Please see sample chart, below.
Quits By Belt Rank
Again, tracking our statistics and comparing them to our past results has been a cornerstone of our success. If you aren't tracking metrics, or not tracking them as diligently as you should, please think about implementing stats tracking in your school or schools. If this is new to you, start small and make sure to only track the stats that provides you the information to improve.
Until next time, all the best in providing martial arts instruction that is changing the world for the better.
Check in last week's for Part I: The Value Of Tracking Useful Metrics of this blog on other key metrics we use to run our business.
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ABOUT AUTHOR: DAVE CHAMBERLAIN
Dave Chamberlain is a seasoned senior executive with experience in high-profile corporate environments and fast-growing start-ups. He is a proven leader with a consistent track record of success. Prior to joining Kovar's Satori Academy, he held executive management positions at Gateway Computer and IBM. Mr. Chamberlain found his way to Kovar's after his daughter began as a student in one of the Kovar's Academies, shortly thereafter Dave Chamberlain began training. He has since earned his 2nd degree Black Belt and is training for his third.
Dave Chamberlain joined Kovar's in 2006 and now serves as the CEO working side-by-side with Kyoshi Kovar to make Kovar's and their clients successful. Mr. Chamberlain brings a wealth of both small and large business experience to the table. When coupled with his passion for Martial Arts and the belief that it can and does positively impact the lives of those who train, he remains a strong advocate for the Martial Arts Industry.