Quote:
Katherine Derbyshire wrote:
Except a dojo has high fixed costs -- rent, instructor support, etc. -- but very low incremental costs. Adding an additional student costs very little, and most of those costs (uniform, organizational fees) can be passed on to the students themselves.
Moreover, each individual class is like a theatre performance: once it's over, it's done. You can't put it on a shelf and sell it later. So, like day-of-show "rush" tickets on Broadway, you'll take any revenue that you can get from a teaching slot that would otherwise be empty.
Katherine
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Pedantic man replies -- Again, if you are selling "below" cost (fixed plus incremental) then *by definition* you are making less than it costs you. Honestly, being a dojo cho myself and cutting the checks monthly I'm fully aware of the high fixed costs and the fact that bringing more bodies on the mat is almost cost-free. I was replying to the comment that even if you're losing money by selling below cost you can make it up on volume as a general concept.
Taking off my pedantic-man cape now and getting back to doing the dojo invoicing...