The True Cost of a Student

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?

Get my free 60 minute masterclass where I go deep into how I went from keeping students for years instead of months click here to access

Share your Thoughts