This Business Makes $300K/YR Teaching MATH to Kids!

They don't even care about their kid. They care about the perception of having a kid that's behind. I'm Mike Andes. I'm the founder of Augusta Lawn Care. We have over 150 locations and we travel around the country fixing small businesses.

It seems like we paying the business, like, what is going. So my head is like, you better run. But then my heart is like, I don't know. We've accomplished our mission here yet.

My biggest concern when I look at her numbers is the fact that between two locations, only $330,000 in annual revenue.

But he's like, does it make sense financially? I'm like, it doesn't make sense financially, but my heart is still connected.

If you actually care just how much you care because you do. Like, otherwise, if this was just a transaction, like, let's just get out of this. This can be very, very difficult. So we've got to find a way to either increase the amount of revenue.

I shouldn't have to bend your arm for you to know your kid needs support. Like, I don't want to be that person. That's the hard part. It's like my head and my heart are going back and forth because it.

Seems like you're just kind of burnt out on it.

I'm burnt.

I'm burnt out because they're losing money, they're not profitable, and she's thinking about trying to sell them.

If it's over, I'm okay. If the season is over, we can sell it and be done.

Let's see if we can turn this.

Y' all just pray for me. Pray for the sister. Pray for the sister.

Okay, so we're pulling up here. I'm noticing this in a really nice area. There's a Sephora, it's a Nordstrom rack, There's a Cava. Like this is prime real estate. I know that this rent is going to be extremely expensive. And in a fixed expense business like this where the lease is such a big piece of it, that's not good news. Hey, how's it going?

Good to see you. My name is Yemisee Akinea and I own Mathnasium franchises which are a math only learning center.

So how long have you been at this location?

This is our 10th year.

This one?

This one.

And then you started the second one. How long?

That one is five years this year. So this location is called Math Nasium of Woodmoor. And then the second location is in Bowie. That's Math Nasium of Bowie.

And what, what's the rent on this location? Per square foot? You really want to know? I'm gonna guess.

Well, per square foot.

Let me guess. It's gonna be.

$24 a square foot. I'm gonna guess.

First year was amazing. We were shocked. I think within the first three months, we already broke even. I calculated how much we've paid in 10 years to rent one point something million. And I'm like, I could have had a whole building. I could have owned a building. But, yeah, 2017, 2018, that's when things kind of stalled, and we were like, what's going on? And then I was hearing other owners talk about possibly opening in our county. You know, the direct competition. Competition was kind of like, okay, we need. If we're going to open the second one, this is the time to open it. And that was 2019, right before COVID.

Before COVID was there a lot more students, and we.

I mean, we survived. We know some centers that could not come back. They. And I think part of our survival was instantly we knew, get everybody online. And then when the county shut us down, all of our kids were online. Unfortunately, not every center was able to do that. But since then, we haven't been able to recover.

I'm actually here inside of the gym that I own in blaine, Washington, anytime fitness. And we also went through Covid, had to shut down for several months. Still paid the lease, still paid the rent. It was horrible.

When Covid hit, it was surprising because a lot of owners that we didn't expect to close, close. Like, these were people that I was looking up to. And Covid really showed like, you're still vulnerable to life, but ultimately, you have.

To get back on track, go full sales mode, and recover from that kind of injury.

This center has about 50, 50 students.

That one is around 25.

25. And each center easily could hold about 150 per center.

Was this like 100?

It was close. It was like 80 something. I think we hit 90. And then Covid hit, and everything went down. It was. That was hard. That was very hard. But the lord when I say we went through, My mom passed from COVID Her oxygen levels would get better. So we thought, okay, she's gonna make it through. And then they said, her heart. Her heart. It was doing so much work that her heart just stopped. During the whole time that we were closed, shut down, my sister was about to have her baby. I'm dealing with the center closure. I said, ugh, I'm not 100% ready to sell, because I feel like there's more we can do. And I want to make sure we've exhausted everything. Like, we've looked at the price, we've looked at everything, and we've done everything we can do before I say, okay, yes, let's sell. My heart is still connected. I'm like, lord, if it's over, I'm okay. If the season is over, we can sell it and be done. But I feel like there's still something. Cause I just want to give my all and be able to say, I've done everything I can do. But my head.

Is like. Because we've had an investor reach out and it's like, hey, are you looking to sell your centers?

If you're trying to maximize the valuation or how much you're gonna sell a business for, you wanna sell it. When everything is going well, when you.

Have systems in place, when you have.

Great employees, when sales are going up, when revenue and profits are increasing. And a lot of times entrepreneurs and small business owners, we only ever think of selling our business when everything is falling apart. And that's why most small businesses don't sell. Just go out of business or sell for pennies on the dollar.

So my head is like, you better run for do it. But then my heart is like, I don't know. We've accomplished our mission here yet.

So what does accomplishing the mission look like?

Reach as many kids as we can in this community. Because 10 years ago, our story is crazy. 10 years ago, there were no math nasiums in this county. And then I heard an ad on the radio for Mathnasium. And at that time, the catch was, come to Mathnasium to work out for your brain. And I was like, oh, that' cute. Like, I just was like, that is so cute. And my husband and I had to drive an hour out to get map support for my daughter. Within the first two months, she went right back to her a and I said, what is. What is it that they did here? She was like, mommy, I don't know, but it makes sense. So we're driving, I'm stuck in traffic, upset, like, why don't I have this in my own neighborhood? And I remember the day. I remember, like, frustrated, like, why do I have to sit in traffic drive so long to get math support from my daughter? And I called my husband and I was like, this makes absolutely no sense. I called the owner of her location and I said, why aren't there any in this area? And he said, I don't know, call headquarters. There may be an opportunity. He gave me the phone number. He's like contact hq. You know, ask them, why don't you have any in your county? I called, they said, well, we do have an opportunity, but no one has ever inquired. So if you're interested, you have to fly out to LA and meet the owners. And that's what my husband and I did. Yeah. And here we are 10 years later. You know. Yes. There's some level of you have to be transparent. He has to see your numbers, which to me, if you need help, that shouldn't be something you're hiding, especially if you're looking for true help. And then how would you know, like, when it's time to sell? Right? Like, do you. You have multiple businesses. How do you know when this is it?

Building your business as if you're going to sell it even if you're not planning on it, is really a good strategy because if you got hit by a bus, you'd probably have the systems in place to be able to run without you. If you decide to sell, you'd be able to pass it along to the new business owner with systems training and procedures. And if you decided to keep it, it probably run more profitably with or without you.

I'm assuming this location is kind of like the trophy in terms of real estate.

This is baby number one.

And that's the stepchild.

That's the step child.

Got it? Okay, I got you, I got you.

But the data shows we could probably command more money at that one.

I'm assuming that rent, though, is like half if you can get fixed costs down in this kind of business model, that's where, like, you don't even need as many students, but you make more money because your fixed expenses are so much lower. So here at Anytime Fitness, we are also part of a franchise. And the thing that's similar with Math Nasium is once you pay for the rent and the utilities for this building, that's a lot of your cost. Those are fixed expenses, which means they don't change based on how many members are inside of here. So my goal is just fill this place up, get as many people inside of here as possible to make more money. When to sell a business, the number one thing comes around. If you're not passionate about it, I feel like you're still passionate about this to some extent, but it's also really difficult to be passionate about something when you're losing money on it.

I think I got paid January 23rd last year. I think that was the last time I paid myself just so everybody else can get paid, like, so My husband's like, boo. It seems like we paying the business, like, what is going really be about.

Potentially finding a buyer that actually does care? Sometimes it's tough because if it's more of an investor type, they're just looking at as like spreadsheet.

That's right.

Then it's a matter like, well, and my customers won't be taken care of and there won't be a face and it's not gonna be any improvement for them. That's a challenge. That's a challenge, especially because you have the emotional tie to what it did for you and your child.

And I feel like these investor types are just going to come out and like, revamp the whole thing, make a whole bunch of money. But it's not going to be about the student anymore. It's going to be, how much can I get out of this family? You know? So that's the hard part. It's like my head and my heart are going back and forth. The passion I had 10 years ago hasn't died. Like, there's still that, you know, on the stove or the fireplace, that little. What is it? That light, the pilot light is still.

Like flickering because it seems like you're just kind of burnt out on it.

I'm burnt, I'm burnt out. But then my thought process is, well, you got time to turn it around and then sell it.

The question is, is it worth that time investment for you? Because it's going to take like, redoing everyone's incentives, redoing compensation, redoing your marketing, actually getting in front of the camera, like getting a lead process, a sales process in place.

If you're trying to maximize the valuation or how much you're going to sell your business for, you're going to want to make sure that the numbers look good, revenue is going, profits are increasing. There's systems, procedures, great people, there's training in place.

I think it's really good information if you implement, you know, we can get all this knowledge, but if you don't implement, then you're still going to be in the same boat. Or worse, you may close your business. I honestly don't know what the best. I don't want to say lead magnet, but I don't know what the best source is to get them in. HQ has looked at my, like, reports and stuff and they're like, you have a really high retention rate. Like, they stay, but the issue is getting them to come. Like, we need to figure out how to get them in the door because when they get in and they start going through the program, they stay.

Sometimes, though, your retention rate will actually be inflated simply because you're not getting new customers. And they're the ones most susceptible to leaving. Because if you have customers have been around with you for three, six months or years, they're not going anywhere. But if you're getting new ones, those are the hardest ones to actually keep and then going on, Right.

It's awesome to have outsiders look into your business, right? When you're in your business, you don't see, like, the very minute do this, do that. Like, you don't see that because you're in it every single day. But when you have fresh set of eyes, they're like, oh, all you gotta do is do that, Change this thing, change that. You're like, oh, I didn't notice that.

You can become the face of this brand without being here. You can be the person that is literally pitching what happened for you, what Math Nasium did for you. You're trying to give back to this.

Community that is super powerful. And then to have your daughter be.

Like, she just graduated, like, great grades and all the rest of it, like, tell your story.

That will do so much more for.

A parent in this local area than seeing this stupid sign out here that says Math Nasium. But the sign doesn't sell. It's you they're gonna buy.

Because a mom in their local area.

Had the same problem they had, and it was fixed by this. Don't be afraid to market and advertise at your size. Instead of trying to think like a big business with big ads and big budgets. Look, you're just getting started. Be the face of the brand, be the face of the company and make ads that way.

So that's funny you said that, because I was like, maybe I should take my face off the website and then say, like, there's been a change of management. Because I do know some people are not thrilled with my approach.

In this case, Yemassi would actually do a whole lot better if she just marketed to the moms in her local area and came across as a local mom. The only way right now we're reaching people is if they type in the word tutoring in this area. And so they're gonna compare you against every other tutor. Not every other tutor has your story right.

And sometimes I feel. And I know you know, as a business owner, you gotta take your emotions out, but sometimes I feel like they don't know, like, the sacrifice we made.

But then tell your story. You could literally say this is what happened to my child. This is what Math Nasium did for them. Here's the result of that. If you actually care, just tell people how much you care. Cause you do. Like, otherwise, if this was just a transaction, you'd be like, let's just get out of this. This is not making money. I'm traveling all the time. I'm working part time, basically for free. Like, there's a lot of other things you could be doing.

I could be doing. You're right. So that's how we keep sitting down, like, okay, what do we want to do? And my husband, God bless his heart, he's like, I know your heart is still in it. I know your heart is still in it. But he's like, does it make sense financially? I'm like, it doesn't make sense financially, but my heart is still connected.

And you sharing your experience would be super powerful. If you did that in front of a camera and it drove to a calendly to book a call with you on Zoom, you would sell people like hotcakes.

Hate being in front of the camera. But the Lord has rebuked me on that. Like, stop running from the camera.

This is the thing. You don't even have to overthink it. I actually think a really, really homegrown video would be great. Like, literally just camera in front with you being like, okay, talk would be perfect. You making a couple ums and ahs, Making a mistake or two. No music, no captions.

It's like, hey, this is another mom. I live in your area.

This is what happened. And this is what we're doing at Math Nasium to guarantee your child gets ahead and isn't behind you will crush in a video.

You want to do a video right now?

Oh, no, I think it would be great.

Yeah, I guess. Like, I've heard so many times you're supposed to be on Instagram, you're supposed to be doing stories you're supposed to be doing. And I'm thinking, I don't want people in my business. So I'm trying to find the balance of how do I share what's in here and what's in here, but still have, like, my privacy? I don't. It's such a hard balance. How did I know this is gonna happen?

Like, okay, so I'm gonna put it on my phone. I can airdrop it to you afterwards, or we can send it to you later.

Do I need lip gloss?

You look fantastic. All right, so here. This is what we're gonna do. Is it known for the A.

Right, The A. Oh, I did know that's the logo.

Okay, fantastic. So this is what we're gonna do. Give me a minute long of, like, what Math Nasian did for me and why I started.

I think I've seen so many people, like, get online, and it's like, you're a phony. Like, I can pick up phony so quick, and I don't ever want to be called a phony or I just don't want. I just like my privacy. All right. Good morning, everyone. My name is Yemassi Akinea. So my daughter that once used to get A's in math started getting B's and got her first C. And so immediately my husband and I knew we had to find support somewhere.

Something I've always lived by is progress over perfection. In other words, you're not gonna get it just right with perfect cameras and lighting and actors. When she's trying to make these new ads, I just want to see progress directionally towards the goal. And instead of trying to wait for everything to be just right, just pick up camera, just pick up something and start making ads, start making content, and take action towards the goal.

So here we are 10 years later. My daughter not only graduated early at 17, she graduated with a high school diploma and her associate's degree.

Let's go.

And I think I'm trying to find the balance of being real, but still private, because I feel, you know, sometimes if you're not. If you don't show certain parts of your life, people can take that as she's being like, she's not being authentic.

I want someone that is not price sensitive, that sees a story and wants the result of your. Your daughter that went through school and did Math Nasium, and they hear your story of how you brought it back to this county locally. Like, that's an awesome story.

I don't think we've ever shared it publicly that, like what?

Like, that is the brand. Like, if you think about the brand, that's what Math Nasium is all about.

I think Yemassi might be looking too far off to find the solution. She is the ideal customer. She was price insensitive. She could care less how much it costs to fix that problem for her daughter. We need to find more people like her.

And I know, like, you know, as they've grown, you feel like they may have gone more like the business route, but like the story. And the reason why you're even holding on this business is because that story, you share that with people, they actually like oh, like she's one of us. She was a mom. She knows, like, to have a struggling student, it's not fun to have a struggling student be like, you feel like a failure.

And if she's gonna try to find more people like her that have their kids that need help, she's gotta share her story and share that she is also offering the sol to the problem that she used to have.

What else would you do? Like, if this was yours, what would you do differently?

Oh, this has become a sales organization, right? Like our product is two things. It is one, allowing the parent to go do something else, knowing their child is doing something productive, right? That's the glorified daycare. The second part is we're going to make your kid a genius, right? And a genius might be going from grade four to grade five level or like not being behind or whatever it is. But like, that's the product. How do I sell that is I'm going to guarantee it. People are not coming here because they want their kid to do their homework, right? They're coming here because either A, they don't want to see their kid, they want to go shopping, or B, they're tired of their parent, of being the parent that has a kid in school that's way behind everyone else. They don't even care about their kid. They care about the perception of a parent of having a kid that's behind. Look, sometimes the mom is simply going to buy the tutoring for them to feel like a good mom. The same way here at the gym, there's people that buy a gym membership, never show up again simply because they want to be perceived as someone who is healthy and living a good lifestyle. Perception is everything. So the thing that's so unique I think about this business is it's a fixed cost business, which means we have rent, which covers massive, is huge and utilities basically aren't going to change. And then we have the cost of an instructor. And so what's unique about that model is you can make crazy offers. For example, with lawn care, If I get one new customer, 50% of that revenue is going to be going to direct cost, which is variable, which is wages and cost of goods. Because I don't have a building, but I do have a laborer has to go out to their property and actually do the work. Here though, the incremental cost of having one more student is almost zero. Once you've paid for this building and have an instructor in here, that gives you the flexibility to make crazy offers.

If anybody is apprehensive I would say, don't be. It was a great experience. I mean, from Zach from the first meeting to this meeting, I think everything just ran smoothly. Yeah, it's a great experience. Definitely do it quickly because he said the other dates was the end of June and I didn't want to wait to the end of June. I'm like, we got to make some changes now.

For example, I would really think it's cool to do a couple different offers I thought of. One is like, you guarantee that they will go up one grade of math within a certain amount of time. You have to follow the lesson plan. And if you follow the lesson plan and we don't get your child to the one grade level above all your money back. So you can make it a three month challenge for a thousand bucks. 9.99. Three month challenge and you go all in.

I like that. When you enroll in our program for the three months and the goal is for you to be able to, your student to be able to move up one grade ahead, you know, if they don't, then we'll refund you your money, basically.

And if you're like, hey, I don't like the refund option, great, then we're just, you're going to pay up front and we're going to guarantee the results or your money back. So for example, like with some, with the software company I have, we guarantee they grow their business their money back. No one else is doing that. No other tutoring company is like, hey, if your kid doesn't go up a grade, we'll just give you your money back. And then you know, like that if someone's actually gonna follow the plan you give them, there's no way they can't improve.

I am a little cautious about the three months. Could it be done in three months? Yes. But also the child can't be that far behind. I'm just thinking about those parents that already know they're gonna ask for a refund. They just wanted their kids in some type of math support just, you know, to get a free three months, I'm thinking about those ones.

This is where it comes as a conviction in your product. If you actually believe that if they follow certain steps, they will have an outcome, you can offer a guarantee. And yes, maybe one out of five people ask for a refund because they do all the steps of the process. But if you actually know that following the steps of the process comes with a predictable outcome, offer a guarantee, you'll get way more sales, you have to.

Follow the Lesson plan, like if you, if you, you flunk out, you don't show up, you go to football practice.

Sorry.

Don't tell me Johnny is sick. Too bad. Well, don't bring, don't come up in here coughing and hacking. Like, don't do that. But jump on virtually or figure it out, you know, or maybe give like one excused absence or something, you know, three months is a long time if.

They don't hit their target but the parent sees massive improvement and like they're just, we were diligent, they're gonna get there. I know we didn't quite hit the mark. Like this is the offer you can give them. Hey, instead of giving you the money back and you leaving, we can take money and put it towards a 12 month program. You're gonna get your money back and that money can be back in cash or you can put that towards future training. And so then what you can do is you can pitch this as a 3 month tutoring for free.

So that's the offer. And then of course we want to, you know, if they don't, then we'll keep them in the 12 month program so we can get them to where they need to be.

So now that thousand dollars is coming out of a $6,000 12 month program. You can just be honest, be like, hey, we will. Literally, we want to make sure they get there. So we're going to give the rest of the 12 months almost roll whatever you pay the $1,000 a day into that. So what we do, for example at the gym, same model, we don't, we have a lot of fixed costs, not a lot of variable costs. We're going to get them in for a six week challenge. If you lose 20 pounds, we give you your $400 back and you can either a, keep doing what you've been doing in the past, which hasn't been working, or stay on with us, put that $400 towards a $1,200 package.

He's like, when a parent says no, you don't like try to fight for the sale. And I'm like, I shouldn't have to bend your arm for you to know your kid needs support. Like you reached out to us and I'm telling you this is it. And I'm thinking that's too salesy. I don't want to be that person.

Look, I understand when you're trying to sell customers and you're trying to get more jobs, it can come across as salesy. But it's only salesy if you have bad Intention and it's going to do harm to the person you're selling to.

Yeah, that's the thing. I'm not trying to trick you. You look, we're the experts. You're coming to us for help and this is what we can do.

If you actually believe in your heart of hearts that the product or service that you're selling is the best option and going to be the best for the customer that you're selling to, it's your duty and your obligation if you care for that person, to make sure they come to a buying conclusion.

There's two ways to fix a problem. One, let's use the health example. One, you can sell someone's supplements and say, hey, if you use this for the next six to 12 months, it'll make you better.

Yeah.

Or you can spend 100 times as much and get surgery and immediately have liposuction and solve the problem very quickly. All of a sudden they're willing to pay 100 times more. And in the past, I feel like what we've been selling at Magnesium is like supplements, like, we will make your kid better. I want to say we will raise their grade by 1 in 3 months, guaranteed. Remove all risk that that potentially might not happen. I think that's a stronger offer. And people are willing to pay a premium price for that versus giving free assessments. And then you're feeling you're trying to sell them into this thing.

It doesn't feel good.

Yeah. Because you're selling supplements. It doesn't feel good to sell supplements. Versus, like, I guarantee this result. We will track this and we will make this happen.

Yeah. My brain is like, ah, overload. But it's exciting, I think, to break.

It down, make it simple. It's two things, right. We are trying to increase the number of leads by telling your story, by pushing them towards a guaranteed result instead of just like a supplement. We hope things work out so everything.

Goes back to the leads.

100% money solves everything.

That's right.

And then the secondary part is retention, and that is making sure that our team members are incentivized to get more butts and seats.

I love my instructors. I mean, we hire math people, right? They have to know math. And we've also learned that our people just can't know math. They have to be able to teach math very hard. And so sometimes the engagement piece or the fun factor that the students want is not always there.

I think there's two things we have to fix. One is the getting new leads, getting sales, and I Think that is with a great offer. And then you gotta fix the retention. Like having people here that are incentivized to retain those customers from leaving out the back door. And then you just gotta align incentives with them.

I always say the kids are the least of our problems. All they want is food and fun. Food and fun. Give us some chips. Chips, cookies. Yeah. What about the fun factor? The fun piece?

I feel like if you. As long as you give training to your instructors of how to do that and why aligns with keeping more people in their sessions, they will do it. Right now, there's no incentive for them to keep more people in their sessions. So if you're like, hey, make it fun, they're like, well, if I make it fun, that means I have to teach four people instead of two. I prefer doing two. It's easier. I'm going to get paid the same.

Amount even when we lose a student and the instructors don't care. Actually, they would prefer to have less than four.

Whereas, like, here's. Here's the tools and techniques you can use to keep four people in your session. Let's make this fun. Here's the five ways you can make this more interactive. But align incentives with them. That way you're all speaking the same language. Because right now you feel like you're just trying to try to micromanage their behavior. They feel like, well, why would I listen to them? Just align incentives. We want full sessions here, anytime fitness with the team. They get incentivized based on supplement sales, training, and they get a percentage of profits every single month. At Augusta Lawn Care for our team out in the field, we pay them a percentage of all the labor revenue. That's what they earn. It's called pay for performance. They also get a profit share at the end of every quarter. Here at Copilot, they're pretending like they're working hard, but their pay is also affected by the churn rate. How many of our customers are staying with us. Their entire pay structure is based on that.

I don't mind paying the team, but it gotta make like, I'm not gonna pay you to sit. Or sometimes students don't show up. And then I'll see on the camera the instructor just sitting there or the table. Like I walked in, I was like, even before I walked in, I saw the sticky thing on the outside, and I'm like, what in the world? And then I'm like, you guys are coming in. I'm like, oh, gosh, I don't have time to clean.

It'S. Good, but it's like, they don't see that, you know?

But we're not incentivizing it, okay? We cannot blame team members if they're not incentivized for it.

So how do I come up with this plan of how much? How? Like, I don't know what to do.

You can do it in a more granular way by going every single session, right? And that's like, hey, if you have four people in your session, you make more per hour. So if it's 15, let's call it $25 an hour, right? So, hey, you're make $25 an hour. If your session is full, it's gonna be $15 per hour. If it is less than 4, that's the harder way. You're gonna have to have some way to track each session, etc. Now here's an easier way. Way. Simply the number of students in the center. Hey, at 25 students, you're going to make X amount. At 50, you're going to make X Amount. At 75, you're going to make X amount. And you literally walk them up from $15 an hour to $30 an hour in their pay based on how many students are here.

I know one of the things I keep playing in my head is rewarding everybody for a few people. I'm still struggling with that. I know Mike says, you know, do it. It's better that way. That's the easiest way. There's some that do more than others.

Right.

With any business, I'm struggling because I'm like, I don't want to reward the one that's not going to put in the effort from the effort of the one that will do it. Like, I'm trying to figure out, how do I reward the right one and not the one that's not going to do anything. So that's every instructor. Yeah, but what if three instructors are doing a great job on that?

But.

But one instructor is not.

Guess who's gonna tell you that the other three. Yeah, they will be watching each other. Cause they want the overall number of students in this building to go up. And they'll know, like, hey, when they're at 45 and they know at 50, they unlock $2 to $3 more per hour. Guess what they're gonna be doing.

Hey, did you.

I saw your other kid.

Does he wanna come in here?

Like, they'll switch into that mode. They'll think more like an owner.

Which means we probably need to keep renewal dates on that spreadsheet where they can see as well, if you can.

I would imagine you guys have like a CRM, right?

Yeah, we do.

Right. I'm imagining in there they could see that, right?

No, we. We restrict certain access to the instructors, but we could open it up. Open it up.

Or just as much as you possibly can. I'd be trying to let them see as much as possible because now we're aligning their incentives and ours, which is more butts and seats. And more butts and seats means more money for them, means more money for us. And then we have a really good option where they. We sell this thing for a bunch of money or be able to keep it and it run really well.

I mean, he hit it on the head, right? With, of course, the pay. But I found I feel like, especially with this generation, what I've heard was the millennials want more purpose. You don't gotta pay me 50,000, you can pay me 20,000. But I'm making impact.

And show the numbers. Like, I would show your profit and loss statement with your team. I know that's really, like, it seems scary, but, like, now they'll actually be like, oh, for all they know, this is the thought process that goes through their head. You're making money hand over fist. You're not doing anything. So, like, if that's not the case, share that with them. When you see me here, like, I'm basically volunteering.

And so with my staff, when I look at them, I don't get the sense that it's money related, but it's more of the purpose. How do I incentivize them beyond the money? Yeah, we can do them the hourly thing. I don't mind paying them more, but there has to also be something that's going to hit their. That purpose meter in their heart, because that's. I feel like that's more of what they want. I just don't know how to do that for them.

And, like, do they know your story?

Like, why would we expect them to actually pour into these children the same way that you want them to without knowing your story? The whole reason this place exists. Take everything we've talked about off the table. If you just got in front of two parties, one online local moms and two your instructors, and just told your story, that'd be huge. That'd move 50% of what we're talking about today.

And it's crazy. I got this advice when we opened. Share your story. And I was like, people don't really. I was just too busy on trying to get Open. And I was like, people don't really want to hear that.

That's what these instructors, that's what they're dying to have is some purpose.

And part of the purpose, I mean they'll literally say it like I just want to give back to the community. Or I used to struggle in math when I was younger and now I'm statistician. Like it just so those type of people is like, okay, you know, it's more than just 15 bucks an hour when you could be making 25 bucks down the street. What are your thoughts? And we can use the gym on the long term. Like the 12 month. We don't call them contracts, we say agreements.

I know the drill. I know the drill.

We have a seven month and a 12 month agreement. And then like I said, the month to month, you can do that, but you're going to pay a hefty premium for that. Do you think we should keep that or just, just get rid of all that and do the three month guarantee.

Or how we look at it is. So I like the three month thing I would use that is that is an introductory offer. And so you can't do three months and three months and three months. It's a one time offer to get in. And then at the end of that three months you either convert into a 12 month or you get your money back. Because we didn't hit the results and you're unhappy with us. Right, but you're only getting your money back if you follow the whole system. And we know if they follow the whole system, they're going to get results and they're going to be happy. And I would incentivize that very heavily. I'm sure they do that with the pricing.

Well, pricing, how do you know you're.

Priced properly when people are saying no enough.

But then how do I know I'm not overpriced?

Yemassi is concerned that her prices are scaring away customers. The only reason someone won't buy from.

You because of price is because value is lower than the price that you're charging. Ultimately, how do I make sure that.

The customer actually sees the value of my product and service instead of picking the easiest path of least resistance, which is just lowering price, which will always lead to a race to the bottom. You simply want to track three things. One, how many people show up to your appointments? Like what percentage of them when they book a call with you, what percentage of them show? Then what percentage of them do you actually make an offer to because they did the Assessment, you're actually giving them an offer and then what percentage of them actually close?

So most of them, when they sign up for the zoom, they make it.

Most of them like 75, you think?

Yeah, I would say maybe 80. We have a good, like once they get on that calendar, 80 people show up, most don't enroll.

Got it.

Most say, oh, this is more than I thought.

Set your clothes. Okay. So you, basically anyone that signs up, you are pitching them.

Yes.

Okay, let's just make this two things.

Okay?

That's show rate and then it's how much we close.

Right.

So show rate, we're like at 80% of those people that show up, do you think 10% sign up?

I would say maybe 20, maybe 15.

Okay, so then it's just a matter of tracking these numbers. Because what I want to see is like what, when you change your pitch, what happens to that number?

What gets measured, gets managed.

And so there's no way to manage the numbers if we don't measure them. When we go from, we're trying to sell them this seven month thing and we go to a three month. Does that go from 20% to 50%?

Oh, we do the three months.

When we do the guarantee, where does it go? I believe you put in the guarantee will more than like double that close ratio because it takes away the risk. Because in the back of their mind, it's not just the money, it's the fact that maybe this doesn't work and it takes a bunch of my time and my kid doesn't get the results they're looking for. Just eliminate that. The way you build that offer, staff, it's called, is like very important. I do everything you're currently doing and then have a slide says let's address the elephant in the room and that's it. Maybe your kid doesn't improve. Let's address the elephant in the room that maybe they don't get results and they don't improve at all. If that happens and you follow our system, we'll give you all your money back. So what's your credit card information? Let's go. I want to sell them. On that call, I did not want to send them a link and tell them sometime today, get this filled out because I bet I'm just going to.

Go on a limb, get more sales than we used to do it manually.

I'm going to guess that when you send that link, half the people you think are going to sign up don't.

They don't and or forget or the link expires. And now we got to resend.

And so this is what it looks like. Hey, scan this QR code on your screen with your phone. Pay the thousand dollars right now. Great. As soon as that's paid, I'm watching. Great, ye came through. I'm sending you a link right now with your contract to sign it. But the thousand dollar package, like whatever, like for you it's like 1200, 1300 right now. If we call it a thousand dollar package though, that is simply the cost to cover the cost of fulfillment which is your time. Sorry, not fulfillment, but the cost of selling. So think of it like this. I'm not trying to sell them a three month thing, I'm trying to sell them a 12 month thing. I'm just hooking them in with this three month thing. Because if I can get them a grade level head during summer, I'm just looking at a pitch them and I have all sorts of ammunition like hey, we got them in three months ahead by one grade. Now they're caught up. Why don't we put them ahead one grade and let's sign a 12 month and make sure that they actually get ahead in school now because they've just seen the results of three months. The thousand dollars in the lifetime value, that is simply the bait on the hook to the 12 month and getting them on seven or $8,000. So on the zoom it's like hey everyone, you share your screen, that QR code, just scan it with your phone and go ahead and put your payment information in. That's going to be a thousand dollars as soon as I get that. And I'm waiting for you because they all just said yeah, I'm gonna do it, I'm do it. Great, I'm waiting for you. Great. I'm gonna hold them accountable all paying. I'll send you the link and that contract is going to have the thousand dollars already put on it. It's paid for.

Like people want to know what am I paying my like me. You're not gonna get money out of me without me reading the contract. Like I want to read the contract and then I paid the money because what if there's things in there that you don't agree with?

Great. If you want, I'll give you your money back. I offered last weekend. If anyone wants their back for any reason whatsoever, once they get their full nine, you know how it is, a hundred page franchise agreement, I'll give you your money back. No one asked for a refund because I spent an hour and a half going over Everything. I was very clear, built trust with them. I told my story, they built trust with me. And then your contract's not. You're not trying to hide anything.

It is. I mean, every. Most.

You're being honest. Like, you're not trying to scam people.

I actually tell them, read the contract. Like, everything is in there. Yeah.

And you can literally just be like, if you read it and you want.

Your money back, just let me know.

If someone's like, well, I don't want to pay. I want to read the contract for. No. Like, this offer applies only while we're on the call. Feel free to scan it, pay it, and I will refund you for whatever reason if you read the contract and you don't like.

So is the offer truly for those.

Only on the call? Because the only way you can get that offer is to scan that QR code.

So I can. How many, like, people would you recommend? Like the max parents at a time?

I'd max out at 4.

Okay. That's what we do. Right?

And then I would probably say that once you start closing 80% of people, you're like, one on one isn't so bad. I can close them all way better.

Yeah. When more money start rolling in, I don't, you know, things shifting chin Ching helps. It does.

So I think it's a matter of eventually. You might eventually want to go back to one on one because you're like, I can close an 80 to 90% on a one on one with this deal and this offer versus maybe 50 or 60% if they're in a group. So now it's worth your time. But I do think that for now, keep it simple. Just driving the same exact way you're currently doing it on that. It's like sharing your screen. It's going to have a QR code. It's going to $1,000. Pay this today. It's only valid for this call now.

Let's say they don't enroll that day, but then tomorrow they want to enroll.

Offers not on table.

So now what's the new offer?

Our typical offer is 7 months and 12 months.

So if, if the dad. If mom yesterday wasn't ready, but she's ready today and says, okay, I want to pay for the three months. I say, no.

Yeah, because on the call you made it very clear this is only. This offer is only valid today.

But what if she doesn't want seven or 12? What if she wants to do the three?

Well, sorry, that's how you create actual scarcity with an Offer and then your pitch. Like, this is something that down the road, if you go this way and start trying to work your pitch on that call is important, right? Like building the value. Don't start with like, this is Math Nasium. How Math Nasium started. This is like, this is. No, this is me. This is how Math Nasium came to my life, how it changed my life. Here's why I'm doing it, why I'm so passionate about it. That's going to resonate with people so much more. Start with your story, move to the offer, and then make the call to action. To story, offer, call to action.

A lot of shifts, you got to.

Remember this, you got to go back to what, how you felt as a parent when your daughter all of a sudden caught up, all of a sudden turned everything around. What was that worth to you? A lot more than $1,000.

No, it's crazy because when we were looking, I didn't care. The cost of. No, I did not care. I was like, my baby has to.

Get back to her agent.

So I didn't even. I told my husband, I said, hey, babe, I'm looking. And he was like, okay, whatever. And so when I found it, I was like, this is how much. He was like, do you think it's gonna work? I said, yeah. He said, do it. Like, there was no hesitation.

And so now you're thinking about prices and it's too expensive for people. And I don't know if I want to go after the people that can't really afford it and all this stuff.

They don't care about the cost.

What I've learned, I think opening, I thought cater to the folks that don't have a lot of money. But this type of business in this area, you can't do that. We gotta cater to the wealthy, but then get so much from the wealthy that we can now give it or give it at a different rate to the non wealthy. That's what I've learned in this whole endeavor. My mindset has shifted that if there's a way, like, I want it to be a higher value, you. Because those people don't care, like you said, about the cost they will pay.

They're the liposuction people.

Exactly.