Sometimes it’s easy to lose sight of how much a student is exactly worth to your business.
Well in this post I am going to show you exactly how much a student is worth – this will really get your attention when it comes to keeping students!
Lets say in a good school an average student stays for 8 months and to keep it simple lets say an average school charges 100 a month.
Lets do the math
8 x 100 = 800 per student
Plus lets say another 400 for testing, equipment etc
Thats 1200 lost per student!
Lets say your loosing 10 students a month (200 students with 5% drop out ration)
1200 x 10 = 12000
Thats Twelve thousand lost per month
12000 x 12 =144000
That’s a One hundred and forty four thousand lost per year!
Now lets say 3 out of those ten refer someone who joins
1200 x 3 x 12 = 43200
So lets add the 2 together
144000 x 43200 = $187200
That’s One Hundred and Eighty Seven Thousand and Two Hundred Dollars.
That’s £112320 in pounds sterling
Now you know the true value of a student and it may be more at your school, ask yourself what can I do to keep more students?
If you retained an extra 3 students a month what would that be worth to you, well lets do the math!
1200 x 3 x 12 = 43200 thats 3600 a month!
What could you do with an extra $43200 extra in your pocket every year?
A couple of weeks ago someone sent me an email that went something like this…
I’m interested in your curriculum but at 497 its a little expensive in todays climate…
To be honest I chuckled to myself when I got this email because its stinkin thinkin! – totally the wrong way to look at this.
500 investment to save at least 43200 – we know which is the best investment!
The lesson here is keeping students is cheap loosing them is very expensive!!!.
What can you do to keep more students?