Structuring Renewal Programs 1
One of the most overlooked areas of student retention and revenue is having a strong upgrade program or Black Belt Club. If you already have one, then as you review this lesson, look for ways to improve it; if you don’t have one yet, then we’ll help you get one started.
An upgrade program or Black Belt Club is designed to retain students, offer them more advanced training and perks to their memberships, and to generate ongoing revenue for the school.
Using the start at the end and work your way backward method of planning, we’ll start with how to structure your renewal tuition.
Structuring Your Renewal Tuition
Your renewal or upgrade tuition will mirror your enrollment tuition programs for consistency, logic and to make it easy to understand.
If a new member course is designed as:
$199.00 to get started and $99.00 a month
Then a renewal program would be:
$299.00 to get started and $119.00 a month
The renewal program costs more because it takes a higher level of an instructor to teach more advanced students and because you’re going to add in so much value, that your students will have thought that the price was going to be much more.
Notice how the tuition is priced in tune with what is offered to new members? That’s important as mentioned before.
If you never charged an amount to get started more than the 1st month’s tuition, then now is a great time to start doing so and easily increase your tuition revenue.
What do you include in your renewal program?
Your renewal program should offer all the benefits of your entry-level program plus more. If you’re asking for $30.00 more a month in tuition, then your student should be able to see at least $60.00 worth of value. Let me give you an example.
If your new student program gave the student:
• Two classes a week
Make-ups at no extra charge w/ excused absence
One free private 15 minute lesson a month by appointment
Then your renewal or Black Belt Club will offer that entire package plus:
Monthly (weekly if you have a big program) Black Belt Club Members only class
Monthly discount at the pro-shot of 25% off a select product
Special patch, belt, and Black Belt Club certificate of recognition
The privilege of wearing the official Black Belt Club uniform
The privilege of trying out for our demo or leadership team
Discounts on special events that have a fee
You can see that all of this would make a $50-$ 75-month price increases seem like a great investment. And it is… you want to give your most dedicated, A-rated students the best that you have to offer.
In our next lesson, we’ll cover how to qualify your students for your upgrade program.