There are thousands of martial arts schools in America. In our area, there are, depending on the year, as many as 200 schools of various sizes. Some are successful businesses, and others constantly struggle to get by from month to month. Most fail within a few months, thus leaving their students to fend for themselves. The pricing structure of these schools however, does not vary much.

    For instance, what can you expect from a typical school that is open to the public and charges for its classes?

    First: the starting price of programs will vary quite a bit, depending on whether it is a strong, reputable, highly professional school or not. The market place will influence this. For instance if the quality is very high and the training is of a rare quality, it is not uncommon for the price to be higher. If the school is pretty much typical or not of any notable difference in quality, then the price will be low of average price. This is the price component.

    Second: The structure will vary depending on whether the pricing is "value added" or "transparent". Value added pricing strategy is extremely common because it targets the "price sensitive" customer. You know, the one who asks first "how much?" and then "is it any good?" Very few schools are brave enough to use "transparent" pricing strategy.

    What is the difference? The difference is known to all. Value-added schools start with a lower price to begin with, and then they "add value" by selling ranks, items, programs, special seminars, black-belt clubs and so forth until they get the amount of revenue they need to stay in business or make a profit. How much is that? Depending on staff facilities and so forth, it is usually at a range of $115 to $250 a month per student, if the industry publications and surveys are correct. Unfortunately, belts that are awarded by this method are in effect worthless and do not reflect skill, they are only another revenue stream.

    Transparent pricing will just say it costs "$115-$250" depending on the program. Transarent pricing is something you usually get at higher quality institutions, colleges, and so forth.

    Third: Contract or no contract, that is the question.

    This is an easy call. I know of no successful martial arts school that does not use contracts. All successful martial arts schools use contracts. There may be a few exceptions, but I do not know of any. If you do not want a contract, it is easy to find a struggling school or back-yard dojo that will accomodate you. But don't be surprised about the poor quality or the fact that the school will probably close within a few weeks or months.

    If I sign a contract, will I have to pay?

    In absolutely every business in existence, to my knowledge, if you sign a contract, you will have to pay. In the Dallas area; Yim TKD, Han, TKI, and Wujido Institute all use contracts, as does every other reputable school. Agreements vary whether value added, step up, or transparent.