Why do some karate schools cost twice as much an want you to sign a 1 year contract?

Question

In Michigan, I am finding that some karate schools charge around $60 per month for a child training 2x weekly. You pay monthly and do not sign a contract. A lot of other schools charge $120 per month to train 2x per week and want you to sign a contract. Why? I have asked, but the only answer I get is that the higher rate is all inclusive and it includes all of your testing fees? Even if the higher rate includes testing fees, I can't believe your child would be testing that often to require that type of monthly payment and a year long contract. Any ideas what's really going on?

Answer 1

Most likely they want more money for profit. The best way to find out if a school is worth what it is asking to pay for is to observe the martial arts school in practice and then go with the one that seems best suited for your child.

Pay for what you want your child to get out of it.

Answer 2

In my experience, there are many different kinds of setups for schools.

1.) Sensei has a normal job and runs the dojo to pass on what they have learned - they are paying back to others what was paid to them.

These schools tend to not advertise much if at all - single line in the yellow pages.

They tend not to have contracts.

They tend to base their fees on their operating costs.

The two dojos where I have studied were like that.

- Karate at the YMCA.  Started because I was taking swimming classes and low and behold, this was not normal YMCA Karate - this school was good and was traditional.  Sensei only used the space to keep his costs low and he was paying for all of our testing fees and gis and belts and stuff out of his own pocket.  The fees all went to the Y.  They were low, but I don't know exactly - my parents paid them.

He had a similar setup at the University where he ran his other dojo.

Later, he made his own fortune and build his own dojo on his own land.  The fees were then based on two things:  Insurance and electricity.

- Aikido at a privately owned dojo.  Single line in the white and yellow pages.  No contract.  Low, flat monthly fee  regardless how often you attend class - 17 classes weekly on all 7 days.

Fees cover the dojo's mortgage and taxes.  Yearly dues cover insurance.  At the end of the year, they make enough profit to buy a few bottles of nice wine.

The dojo is VERY top heavy as the students who stay stay until their body won't let them anymore.

There is a high dropout rate in the first few months but that's ok - if they discover its not their thing, that's cool.  At least they know and can look for something else they might like more, no hard feelings.

2.) Similar to number one with the exception of fees.  They are higher because this dojo is the main income source for the owner/Sensei.

It can be hard to tell the difference between number 2 and number three however at first glance.

3.) A for profit business.  The only goal is to generate money and that comes from dues and testing fees.

This is the reason for contracts - locks you in so you pay whether you go to class or not.  Sometimes the fee is based on number of lessons.  Sometimes you pay for each technique you learn.

I disagree that you go just because you don't want to not use what you have paid for.  Health clubs operate on the principle that you will not use what you have paid for statistically speaking and dojo like this are the same.

Sometimes the training can be top notch, but I would be wary of claims that say a 30 year old is a shihan or a grandmaster in 5 different arts.  That's just marketing c**p.

___

The last one is refered to as the McDojo and they are best avoided.  The first two are where its at but you have to investigate, ask questions, trust your gut and comparison shop like you have.  Visit all sorts of schools and all sorts of styles.  You will likely find one that just feels right - that's where you train.

Answer 3

The latter is called a "McDojo".  Go to the $60/month school.

Answer 4

Contracts are typical, and even some of the best schools in the country have them.  If you have a place that doesn't force them, then that's great, but don't turn down a good place just for the sake of avoiding it.  

As for rates, rates are based on:

A.) Qualifications

B.) Flexible Schedule

$60 a month might be two days a week, but only Monday and Wednesday at 5:30.

$120 a month in the same set up as above is too high.  

However, we charge $100 per month, but you can come as often as you like, there are 2 kids classes Monday through Thursday and 1 kids class on Friday and Saturday.  You could, potentially attend all of these for no extra charge.

In Tae Kwon Do, you can expect to test about 4 times in your first year if you go 2-3 times per week.  Your 2nd year will be only about 2-3 tests and your 3rd year is when you would look at black belt testing.  Test fees can be as low as $10, but as high as $50 for the first 4 belts.  The test fees go up after that.

Also, the qualifications make a big difference.

Instructor A:  Black belt, nice guy.

Instructor B: Former pro fighter, well known in the community, former FBI instructor, trains police officers, works with local charity, chairman of major association, etc.  

The more credentials you have, the more you can charge.  Credentials don't necessarily mean better instruction, but they do allow you to charge more.

Where in Michigan?  I'm near Detroit.  You can email me and I'll be glad to help.  

James

Answer 5

Having run martial arts schools for many years, I can see this clearly. There are basically two types of martial arts schools. Those that exist because the instructor wants to teach others. Those guys, like myself, very seldom make money teaching. We know that but teach anyway. One month making a few dollars. The next month barely making the bills.  

Then there are the McDojo. They exist mainly to turn make a living from teaching the martial arts. They charge a lot more and use contracts.  Why is that?   Here is why:

1) they know that without making you commit to a long period of time and money, you will likely leave within 1-3 months.

2) They know that you will continue to come, if you have paid. Even if you don;t want to.  No one wants to pay for something they are not using.

3) They know that if you are coming they are much more likely to also get friends to join. Especially if you like the classes.

NOTE:  Watch out for hidden charges...     Many times the places that sell contracts, will say it includes everything.  Then you find out that they test often and it is not included in the contract. The testing fees in many places amount to as much or more than the yearly contract fees..

Yes you heard me right, A young girl was on Y/A a few weeks ago talking about the $500.00 test fee she was expected top pay for her black belt test.   What amazes me is that these same people will put up with the high prices, promotions that are often and often not deserved, and the high test fees.

If you have more specific questions feel free to contact me by email.

Edit: The $60.00 classes and the $120.00 classes are about the same as here in Virginia.

Don't sign a contract. The good instructors would rather have you continue because you want to rather than because you paid for a contract.

Good Luck!