DISCOUNTING spells doom for your studio. Here are 3 reasons why:
1. Discounting attracts the wrong kinds of students.
2. Discounting sets up your customers to expect to pay less.
3. Discounting inherently devalues your service.
Discouting might be tempting, but long term it spells doom…Instead of discounting, focus on delivering more value to your student experience.
Here’s the transcription..
Hi, it’s Chantelle here, the creator of the student attraction system. Now on Monday, just a few days ago, I was having a conversation with one of our members. And she was asking me for some advice about whether she should bundle together a bunch of her lessons and sell them for a really substantial discount, so she can get more people through the door. And I gave her the same advice I’m going to give you right now; and that is, that discounting spells doom for your studio. Here are three reasons one.
Number one, discounting attracts the wrong kind of students. When you offer discounts or coupons you know, yes you are going to attract more students into your studio. But their whole motivation for coming isn’t because you are offering everything they’ve ever looked for in a studio. I mean, let’s face it. The reason that they’re coming is because you’re a bargain. And our whole motivation of studio expansion is that we want to attract more of your dream, ideal students; the ones who come and they fall in love with your studio and they stay for years, not leave after a term.
Number two is that discounting sets up your students to expect to pay less. Now, let’s say you’ve got a student sign up for a term of lessons for $50. When next terms rolls around and you ask them to pay for $100, they’re going to go, “Ooh. No, no, no. That’s doesn’t feel very good.” Because you know, no one likes to pay more than they have to. And when you start them at that price, they’re going to want to stay at that price.
Number three is that discounting inherently devalues your service. You know, when you start offering lessons for 50% discounts and five lessons for the price of one, you automatically put your studio in the bargain basement category. And you certainly aren’t positioning your studio as the premium provider in your area, the best studio with the best quality lessons at the best value. And the other thing is that when you’re offering discounts like that, your profit margin is going to be squeezed so tight, you aren’t going to be able to move.
So, instead of discounting, focus more upon adding more value to the student experience. How can you add more into the mix that are going to make your lessons at full price a no-brainer? And then when you’re attracting students who really want to be there, you get to retain your profit margin and also secure your position as the premium studio in town with the best quality lessons. It’s a win-win-win.
Discounting might be tempting, but long term it spells doom for your studio, because once the student has got their discount and they leave after a term, you’re back in square one in survival mode. And everything we teach here in the Studio Expansion program and the Student Attraction system is designed to help you attract more of your dream students who stay for years. We teach you how to communicate about your studio, your philosophy, your teaching style, your products, your offerings, your price point, your location, in a way that when your students see the advertisement they go, “Yeah. That’s the studio for me,” and they stay for a long time.
We’re after the quality of student as well as the quantities. So, that’s all from us today at Studio Expansion. We’ll see you next time.