By Studio Growth Coach, Kristy Ellis
Imagine not having to rely solely on your class fees to have a profitable studio – it is actually easier than you think!
Take a look around… how many revenue streams can you think of in your studio?
A dance studio can offer so many options for revenue.
- Dance Parties
- Recitals (mid-year / end of year)
- Studio Hire
- Photography & Videography
- Create a Mindmap.
Write your studio name in the middle of a piece of paper. Using a blue pen, write all of the current sources of income within your studio (retail shop, recitals, classes). Around each of these headings, write down the additional income streams under your main heading (example: Retail shop > Costumes > Merchandise > Uniforms > Hair & Make up kits > etc.)
Change to a red pen and write all the potential income streams (parties, workshops, studio hire).
With all your thoughts on paper, use another pen to highlight what you would like to focus on within the next 3, 6 or 12 months. Consider – will it benefit my students immediately? Is my team able to take on more responsibility? Are we financially able to invest in these?
- Look at other businesses that are profiting off your students.
Think about this – the photography company you use for your recital is making enough profit to run a business. What better way to create an immediate return than to bring your photos in-house. Of course, you must purchase the right equipment, but the profit you will be making far exceeds the expenses.
What products are your students purchasing? By looking at a potential addition revenue addition to your studio, you are enhancing the customer experience, solving a problem for the parent and also improving on your existing product.
Your goal should be to make the experience of attending dance classes as easy as possible for today’s time-poor parent. While most business are continually trying to find new customers, you have a perfect opportunity to sell to existing customers.
Research!! Speak to a variety of current and potential customers. Look at feedback from lost students. What areas would make your business more appealing? Feedback such as “Too many costs added throughout the year” – Let’s look at packaging our recital to avoid lots of little expenses for parents.
The most important thing to remember here is to not assume you know what your current customer wants. Upon more investigation, you may find more opportunities. You could also discover ways to make your current ideas more successful.
Never assume you know what your customer is willing to pay. After doing your research, you will have a fair idea of the price point in the industry and also what your customers feel is acceptable. Like a real estate says to potential buyers “how much would you be willing to pay” should also be a question put to your customers.
When pricing new revenue streams, always ensure you know your numbers. What is the cost price, what profit you can potentially make and lastly what will be the retail value.
You have done your research, you have heard what your customers want, you know your price point. Now it’s time to build a marketing strategy around your product launch. A 6 week plan is a good amount of time to get a new revenue stream out to your customer. Also consider a ‘soft launch’ to test your new product. Offer an early bird special to existing customers and iron out anything that needs to be altered before it is sold to new customers. The product will be ever evolving but if you can plan and invest correctly in your new revenue stream, it will just build from strength to strength and create a profit in your studio that wasn’t there previously.
Discover more ways to profit and thrive in your studio by joining us for the FREE Dance Studio Recharge Training, kicking off on August 6th 2018. Click here to claim your place today!
Kristy Ellis is the Founder and Creative Director of UP Agency, a consulting company passionate about creating spectacular events and customer experiences. Combining her passion for the performing arts together with qualifications and experience in Business and Event management, UP Agency is fast becoming a highly sought after end-to-end event company.
At the age of 20, Kristy founded her first dance studio, which quickly grew to a successful multi-location performing arts studio. During this time, she gained extensive experience, qualifications and training as a dance teacher, choreographer, design & importing textiles and company director. Kristy is passionate about the performing arts industry working together to help in each others’ success and is a studio growth coach with Dance Studio Owners Association with a focus on improving sales and customer experience through implementing systems, strategies, websites and social media to help studio owners gain more work-life balance.