Today, Gary writes in to ask:
Q: “Hello Mr Massie,
I know in your book you mention not charging less than $99/month, and I agree with you. However, the city I currently live in, and the city I hope to move back to within the next year and a half are filled with Martial art schools that charge $45-$70 a month for unlimited # of classes.
I know that I’m a good teacher. I know that the products that I choose to teach are great. But can I charge double or in some cases more than double and expect to succeed?”
A: Thanks for the question, Gary.
First off, what your competition charges has no correlation whatsoever to what your services are worth.
In my town, my closest competitor charges $70 a month, the next closest charges $30 a month, and several other programs charge in the $50 range.
I charge $109 a month base tuition (Note: This was written in 2008 – MM). I have the most successful school in town.
It’s all about mindset – charge what you truly believe you’re worth, feel good about it, and you’ll get what you expect.
Here’s an easy-to-understand example to get you in the right mindset about this:
A physician in private practice usually charges anywhere from $70 – $150 for an office visit.
But, in many places now, you can go down the street to the local clinic and get see a doctor for about $20 – $40.
So, why don’t the private practice guys charge less so they can compete with the low-cost clinics?
Because they understand two things:
1. Who their clientèle are.
2. And what their services are worth.
Look at any other service industry and you’ll easily be able to find a similar example.
Bottom line… charge what you’re worth.
Also, check out these articles here on MABD: