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Roll With the Punches and Come Up Smiling by Tom Callos Choosing the Best Membership for Success Martial Arts Is About Expression by John Graden Ten Ways To Appreciate Your Staff by Rob Colasanti Extraordinary Marketing Newsletter Classics by Stephen Oliver Five Ways To Compensate a Program Director by Rob Colasanti Self-Defense Myths by Bill Kipp What To Do When You Need the Phone to Ring by Tom Callos Why Should You Use A Billing Company Do You Over Deliver? by Rob Colasanti Improve Your Retention With These Professionally Written Articles For Your School Newsletter- What you should know before you sign a lease! What To Do If Your Prospect Appointment Does Not Show! |
About half of all martial arts schools in the United States use billing companies. With this fact in mind, the question, “Should you use a billing company ?” may cause a heated debate among school owners. It’s a question with which many undecided martial arts business owners grapple, especially when their students pay late or not at all. In a perfect world students would attend all classes and pay on time. But tuition billing is as far from perfect as your white belt’s first side kick. A good billing company can give you a significant edge in revenue, organization, and retention which can increase your longevity and prosperity in an increasingly competitive industry. So my answer is simply, “Yes. school owners should definitely utilize a billing service for their school.” And here’s why… You’re a Teacher, Not a Bill Collector Martial artists become school owners to teach martial arts, not to become experts in tuition management. “I want to be an instructor and a mentor to my students, not a bill collector,” says Mike Pace of the Pace Institute of Karate. He continues, “it takes more time, effort, expense and mental attention than most realize to do an effective job at tuition billing.” Smart owners understand the need to delegate their weaknesses to accentuate their strengths. Julie Noyas of Self-Defense America concurs. “School owners are not professionals [at] tuition collections...while I am quite adept at licking a stamp, affixing it to an envelope, and addressing it to a past due client—I need more weapons in my arsenal which a billing company provides.” Most school owners don’t have the time or experience to provide expert billing to their students. Many schools lose students because of breakdowns in their own billing systems. Student Retention For every student you lose you need two new students to grow. Therefore it’s essential to develop retention strategies within your school. Next to quality instruction, a solid billing management system is vital to strong retention and long-term success. Most self billing systems are “pay as you go” which requires no student commitment, negatively impacting retention. Billing companies provide membership strategies (not necessarily long term “contracts”) that increase retention. Billing companies enforce policies that school owners want but feel awkward voicing because of developed teacher-student relationships. Billing companies “put a buffer between you and the money when dealing with the students,” says Chris Dewey of Starkville Martial Arts. When students of self-billing schools miss class they can fall behind in their tuition, leading to more absences and eventually attrition. This domino effect is more prevalent in these schools because attendance is directly associated with how tuition is paid. With a billing company, tuition is handled separately from attendance. Students who miss class have the same responsibility as those who attend to pay a “scheduled payment.” Billing companies create motivation for students to quickly return to class. Be a Martial Arts Professional “How impressed are students when they see classes are starting late because you are collecting money from parents?” asks Raffi Derderian, Jr. of Modern Fighting Systems. Even when there are staff members to collect tuition, people dumping cash and checks on your desk detract from your professional appearance. You’ve heard that if “you’re a jack of all trades you’re a master of none.” It’s hard to be a Martial Arts Professional when you’re wearing a dozen hats. A billing company “makes us look better” says Pete Hatcher of American Karate. Billing companies provide flexible payment options such as EFT, credit card, coupon books and statements, which students prefer and give your tuition the same priority as other scheduled monthly expenses. A billing company not only collects and processes payments but also provides comprehensive reporting that eliminates piles of paperwork and hours of additional labor. Billing companies “help you stay focused and on task,” according to Mark McCumber of White Dragon Karate. The Bottom Line...Cost Nothing is more expensive than replacing lost students. A good billing company will increase student retention, saving you money. “Having a billing company increases your staff without additional cost to the school,” says James Parker of Parker’s Self Defense Studio. Calculate the “true cost” of doing it yourself, and you’ll see that billing companies provide cost effective tuition management. As Mike Pace states, “I believe in following successful business models. All of the most successful schools in the country and internationally use a tuition billing company. There must be a good reason.” |
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