Pay Per Child

You Should Know

If you’re looking at KID-FIT as a business opportunity (as opposed to a single location or non-profit program) you should know how KID-FIT is different from children’s fitness franchises.

KID-FIT is a structured P.E. curriculum in which all children on location participate instead of just a select few. Children’s fitness franchises sell their service as pull-out programs. Also known as a “parent pay” or “fee per child” classes, there are a number of disadvantages of building a business this way. Here are some of the most important:

All Children Participate
Pull-Out Programs
Need to convince one person (Director/Owner) to make a sale Need to convince parents of each child to make a sale
Year long contracts Month by month contracts
Buyers make a buying decision once a year Buyers make a buying decision each month
Stable cash flow all year long Sporadic monthly cash flow
Less sensitive to the economy More sensitive to the economy
Difficult to terminate yearlong contract Easy to terminate monthly agreement/contract
Easy accounting -1 payment per account each month Time consuming accounting - payments from many parents
Minimal returned check fees Regular returned check fees
Enrollment is never a concern since all children participate Enrollment is always a concern, especially for holidays/vacations
Average cost per child low - leads to greater volume Average cost per child high - leads to lower volume
Convenient for schools - entire class takes the program with their regular staff teachers Inconvenient for schools - select children are taken out, other children are upset and some school teachers have to leave their classrooms to help
All the staff sees, knows and values the program Few staff members see the program or know what children do each week
Accepted as an important part of the curriculum - fees part of tuition Not an important part of the curriculum - an optional extra
Yearly renewal likely May not make it a full year
Higher overall account retention Lower overall account retention
Instructor hours and income are stable Instructor hours and income are unstable
Class size is large - motivating for instructors Class size may be very small - not motivating for instructors
Low instructor turnover High instructor turnover
Greater long term financial security Questionable long term financial security

To summarize, conducting a pull-out program will cost a massive amount of capital for:
1) Selling and retaining clients
2) Accounting
3) Hiring and retaining instructors

Long term success is directly related to each of these areas. And, it’s not cost effective to start a business with so many unnecessary worries.

Be careful if you are considering investing in a pull-out program promising large profits. These profits are often based on unrealistic sign-up numbers and lead to all the disadvantages listed above.

 


Aerobic Fitness Consultants, Inc. 1403 Bloomdale St., Duarte, CA. 91010

(626) 359-8535 Toll-Free (877) KID-FITT (877) 543-3488