If you’re in the business of providing firearms training, then making a profit is a high priority.
For many of you reading this, there may be some discomfort with what I’m about to say. After being a “for-profit” firearms instructor, I’ve had numerous conversations about the topic of profit, only to be met with comments such as, “We didn’t get in this business to make money.”
My response is always, “Why do you charge for training?”
Do me a favor. Think about my response for a quick second. Why do YOU charge for your training?
There is a passion side of what we do. We want to make our communities safer, and making people safer is the primary reason for teaching.
I have found that with many instructors who are worried about paying the bills, their joy of teaching decreases. When this occurs, what was once a passion turns into a job.
There are other reasons why having a profitable training business is a good thing:
- The more profitable you are, the more value you can provide your students.
- You can create a “Lifestyle” business, which allows you the ability to live life on your terms.
- You can teach when you want to, not cause you have to.
- You can market your training business more effectively.
There are plenty of more reasons, however let’s get into how to make it happen!
Strategy #1: Raise your prices.
Undercharging is one of the main reasons that entrepreneurs end up in the Walking Dead vicious cycle. Yet a surprisingly large share of entrepreneurs undercharge (27 percent to 57 percent, depending on the source you use).Via inc.com
I can remember before I started my company 10X Defense back in 2011; I attended my first direct response marketing event. Within the first 30 minutes of the event I made back what I had invested to be there by doing this very thing.
The speaker asked all the attendees to call their staff and raise the price of their offers by 20% for the next prospect that asked for their service.
(To give you some background, the event was geared towards owners of Mixed Martial Arts and Brazilian Jiu Jitsu schools. I heard the speaker was good at marketing so I made the two hour trip to see him.)
I did what he said. I called my team and told them to raise the price for the next course. Instead of 20%, I raised my prices $100.
I sold 4 slots of my next course for $200 vs. 97$, resulting in $400 profit!
In many ways, your price determines whom you attract. If you raise your prices (especially 10x), you will attract people who value their time so much that they are willing to pay a premium price to have their problem solved.Via inc.com
In my book, “Immediate Action Marketing: Tactical Marketing System,” I give 10 principles, the first principle is “Marketing = Numbers x Psychology.”
The Psychology aspect includes the consumers’ perception that higher priced items are better quality items. It’s the same with services like firearms training.
Caution: The price of the course should correlate with the courses value. Don’t sell high priced junk training.
Strategy #2: Add More Offers!
The more offers you have, the more profit you make!
This strategy could include an entire course in itself, however let’s point out the highlights…
There are 3 categories:
- Front-end offers
- Core offer
- Back-end offers
Front-end Offers…For keeping a good flow of new students!
Front-end offers are the offers you present prior to the core offer. Your front-end offers could be free or paid.
Examples of Front-end offers:
- Free seminar of gun safety. Take your course safety brief and turn it into an information seminar.
- A book. If you have a book that relates to your course, sell it to prospects (or give it away for free).
- Online training course. Take topics from your course and convert them to online courses.
- Sell prospects a DVD on the course (you can also convert your DVD into an online video course).
The goal of your front-end offer is to give your prospects a taste of what is to come when they purchase your core offer.
Front-end offers normally range in price between $7 – $47.
(Customer Value Optimization by Digital Marketer – read more at digitalmarketer.com)
Back-end Offers…Where the profit is really made in your training business
Back-end offers are the offers you present once a prospect has purchased your core offer. You may have heard the term “Upsell,” which applies to an offer given to a buyer immediately after they purchase your core offer.
The most famous company for using back-end offers is McDonald’s.
Would it shock you to find out that McDonald’s makes almost no money on the hamburger. The hamburger is the Core Offer, but it’s the fry and Coke Profit Maximizer that built the Golden Arches.Via digitalmarketer.com
When you go to a McDonald’s to buy a hamburger, you will most likely be met by the statement, “Would you like fries with that?” If you say yes to the fries, the cashier will then ask, “would you like a drink with that?”
By the time you leave, you will have a full meal – Hamburger, Fries, and a drink.
The core offer is the hamburger, and the fries and drink are the back-end offers, also known as the “Upsell.”
Examples of Back-end offers:
- Advanced training
- Affiliate offers
- Personal Consulting
- Special Alumni Offers
“Adding more offers” scenario
How does this apply to you and your training company?
Let’s say you offer a concealed carry permit course:
Step #1: You create an online course (e.g., “3 easy steps to getting your CCW/CHL permit) and sell the course for $7.
Step #2: Once they purchase the online course, you offer them the one day live training course for $250.00
Step #3: The student signs up for the one-day live training course and you offer an additional “Alumni Only Bonus Day” course for $175.00 (remember the McDonald’s pricing model?)
Instead of trying to sell a $250 course, using the strategy of adding more offers, you’ve now increased the student value to your business – a total of $432 in revenue!
So there you have it!
Take Immediate Action on the 2 Strategies to add immediate profit to your training business.
I’m sure the strategies mentioned above will help you increase your profits for years to come.
When you get the same amount of students as you had in the previous year and increase your prices by 20%, you will see an immediate profit increase.
Implement strategy #2 and watch your profit skyrocket!