I would like you to consider your pricing. It really concerns me. I see a lot of conversations about your prices as far as tuition is concerned. I still see people talking about charging $50 and $60 a month. You’re going to go out of business, if you think you are in business, charging 50 or 60 bucks a month. You’re going to put yourself out of business. You cannot stay in business charging that much unless you’re just trying to break even.
I have a strong opinion on that and I’m going to share it with you regardless of whether it upsets you or not. My opinion on you making money, if you’re going to charge money, is that you should make as much as you can and here’s the reason why.
Anytime that you are spending time away from your friends, from your family, there is a price to be paid for that. It is not fair to you, but especially not to the people in your life, that you would dilute your time for any small amount of money just because you want to play karate or play personal trainer or play gym owner or whatever it is, right? It’s not fair. You need to maximize the gifts and the value and the time that you have available especially when you’re going to be away from your loved ones.
So as far as pricing is concerned, it is very important that you consider increasing your pricing.
I will give you a good example. Back in the early 90s, I was selling merchandise, and one of the things that we had was different types of T-shirts. I think I was charging like $12.50 for a T-shirt. I went to a seminar in Anaheim, California, when I came back I said, "no, I’ve got to charge more. I’ve got to make money. I’ve got to charge more".
So, I switched all the prices from 12.50 to 20 bucks and I had some people that griped. I had some people that were upset. And you know what happened? Some of them, not many, but some of them left. You know what happened after that? I was a lot happier. I was a lot happier because those people, they were the ones that gossiped and talked to the person next to them. They were the ones that were talking trash about every little difference and every little change that they saw.
When I changed the pricing, I had a whole different level of experience with the people that were there and the new people that came in. I made more money. It was very easy.