We should consider the overall value of our customer.
What is the value of a customer? We often overlook the amount of revenue a single client generates for us. This article will explore only the value of each industry segment (the ‘costs’ will be a following article). It will change the way you look at your bread-and-butter clients.
Coaches and Instructors
Students come and go, and the lifecycle for most is 2 – 3 years. We are going to use 2.5 years for this evaluation.
You’ve had a student for 6 months, and chances are they will be with you for another 2 years. They take lessons weekly for $30/lesson. they often double up during show season, and they show about 8 times/year.
52 seeks x $30/week = $1560 plus (8 x 30) = $240 + $1,560 = $1800/year x 2.5 years = $4,500 lifetime value.
These are generalities, but if you use them for more than 7 clients you will find they are pretty accurate. Also you may adjust the amount you charge and get a different number, plus the number of years you have each client for. Some students stay with their trainers for years. Adjust each figure as you need to and come up with your own customer value. It may surprise you.
In evaluating the timelines for students, consider that young students rarely continue after 18, older students take lessons to reach a place where they’re comfortable, and students on the competition trail try to learn all they can from as many instructors as possible.
This is a good model to use if you are thinking about becoming an instuctor
Like the ‘starving artist’, horse people are devoted to their ‘craft’ of horsemanship more so than the ‘craft’ of business. While this may apply at the beginning of your career, it is imperative that somewhere you obtain the level of business expertise needed to carry you through your years with less struggle. Eventually on this site, we will be able to supply you with all that you need.
It’s important to understand how much monetary value the horse industry can carry. Many instructors and coaches have additional revenue/income streams beyond just hourly instruction. If you do the numbers correctly, you will have an honest picture of what you can expect to make.
Economy plays a role in these figures too. Currently we are enjoying a surge in the horse population and their popularity. Part of this is due to baby boomers having the income and time to do what they have always wanted. Part is due to the wealth of countries being divided into rich and poor, eliminating middle class. There are more wealthy people today than ever before (partly due to sheer population numbers). And part is the promotion of groups, clubs and associations, and the great programs they provide to encourage growth.
Are you just entering an Instructor career?
To learn more about how to determine if this is the life for you, we will present a series of marketing materials in both article and download forms for you to use. If you would like to see specific information please send us an email at: info@horsemansu.com
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