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- Newsgroups: rec.martial-arts
- Path: sparky!uunet!charon.amdahl.com!pacbell.com!decwrl!pa.dec.com!engage.pko.dec.com!tuxedo.enet.dec.com!paananen
- From: paananen@tuxedo.enet.dec.com (Ed Paananen)
- Subject: Cost of Teaching!
- Message-ID: <1992Nov18.025627.19064@engage.pko.dec.com>
- Sender: newsdaemon@engage.pko.dec.com (USENET News Daemon)
- Organization: Digital Equipment Corporation
- Date: Wed, 18 Nov 1992 01:54:39 GMT
- Lines: 42
-
-
- Greeting,
- Reading the thread on Charging for training makes me think of
- the "flip-side" of it all... The cost of teaching. I'd like to present
- some figures of what it costs to run a school up here in Massachusetts.
-
- 1000sq' space (@$15/sq ft) (low rent district) $1250/month
- ($45/sq' in Malls and other prime 1st floor locations)
- Electric $100/month
- Phone (business rates plus yellow pages ad) $120/month
- Heat ($1200/yr) $100/month
- Liability Insurance ($2000/yr high risk) $166/month
- total $1736/month
- (or $21k/yr)
- This represents basic operating expenses. This does not include any wages,
- unemployment insurance, taxes, equipment budget, advertising, or
- administration costs (tax preparation, accounting, bank fees etc, etc)
-
- The going reasonable rate for classes around central MA I think is about
- $45/month. That means that a school needs to have 39 (call it 40) students
- enroled at all times just to meet basic survival expenses. NO profit here! In
- order to make a living you'd need 100 full time students or put the rates
- over $100/month. (forget it...)
-
- The point I am presenting is that it costs money to run a small business
- these days. The dojo-in-the-garage is nice but even then there are hidden
- costs to both sides. Most likely, schools will cut corners or not figure
- cetain expenses until too late. Many schools operate on a cash basis and the
- IRS is VERY interested in these people. If you employ an assistant instructor
- (even for free lessons in return) the operator of the school is liable for
- taxes and may be liable for unemployment insurance to the tune of 15% of the
- value of the service. Not much based on a $45/mo "value" but the compounded
- quarterly penalties can put you out of business real fast.
-
- I hope this helps in putting some things in perspective.
- But, please continue with your debate about "cost of training".
-
-
- Ed P (30 yrs experiance running a dojo)
-
- Ed Paananen paananen@tuxedo.dec.com
-
-