Sales Models that Work! Growing Your Center to $500K+ Voices from - PowerPoint PPT Presentation

Sales Models that Work! Growing Your Center to $500K+

Voices from the Field Franchisee Todd Crabtree Center Director Maren Gerhardt Model and Strategy Execution and Experience

Sales Strategy – Getting from Good to Great

My Old Sales Model (Paradigm) Key Focuses Outcomes • • Directors were focused on Directors were always focused on bringing in cash revenue – bringing in cash which was good. • Financing and loans were • Good months were good, but the big focus bad months were real bad (lots • Prepays were a big focus of monthly volatility) – “Live by the Pre-Pay, Die by the Pre- I knew I should ‘ve Pay” bought a • The bottom line, however, was Dunkin’ Donuts!! that we were NOT sustaining any YOY growth in our retail business.

Where did this model come from? The Virtual Cycle of 2000 to 2008 Many centers raise rates in response to higher The American Middle demand and increased Class felt financially advertising costs, and the empowered system expands LOS and student Americans were enrollment increased, comfortable with kids make more financing – and it was progress easy to get Sylvan introduced financing as a preferred payment method –and most monthly payers were outsourced

Where has this model left us now? The Vicious Cycle from 2009 to Present Many centers have The American closed as they Middle Class is still cannot keep up with recovering from the center expenses Great Recession LOS decreases – Fewer of our driving down customers are student being approved enrollment – kids for financing accomplish less RPE has dropped to around $2K – AVG Center Revenues are around $220K

It’s Time to Find a Sales Model that Works for Today! OUR GOAL OR “MODEL” IS $500K+

First – Some Basics #1 – The path to growth is grounded in basic math. Student Count Table - Getting to 150 Students AVG AVG Monthly Enrollments LOS Hours 8 10 12 14 16 18 62 62 77 92 108 123 138 67 67 83 100 117 133 150 73 73 91 109 127 145 164 80 80 100 120 140 160 180 89 89 111 133 156 178 200 100 100 125 150 175 200 225 114 114 143 171 200 229 257 133 133 167 200 233 267 300 160 160 200 240 280 320 360 200 200 250 300 350 400 450 267 267 333 400 467 533 600

“Students = Billable Hours” AND “Billable Hours = FTE Students” #2 –Another way to think about getting to 150 kids is to translate those kids into hours. A “Full Time Student” is defined as 8 billable sessions per month, therefore, 1,200 hours equals 150 FT Students. FTE Billable Sessions - Getting to 1,200 AVG AVG Monthly Enrollments Hours 8 10 12 14 16 18 62 492 615 738 862 985 1108 67 533 667 800 933 1067 1200 73 582 727 873 1018 1164 1309 80 640 800 960 1120 1280 1440 89 711 889 1067 1244 1422 1600 100 800 1000 1200 1400 1600 1800 114 914 1143 1371 1600 1829 2057 Remember 133 1067 1333 1600 1867 2133 2400 1,200 for 160 1280 1600 1920 2240 2560 2880 later 200 1600 2000 2400 2800 3200 3600 267 2133 2667 3200 3733 4267 4800

Now let’s Understand the KPI’s - Inquiries I:E LOS Avg. Tuition Revenue Earned Hrly “Quick Business Rate Development Grid” 288 50% 36 $48 $248,832 Available on SLCLink at Sales>Enroll Operations Gives you a quick way to 348 50% 36 $48 $300,672 analyze the impact of the BIG $51,840 4 288 60% 36 $48 $298,598 1. Inquiries $49,766 2. Conversion of Inquiries 288 50% 80 $48 $552,960 3. LOS $304,128 4. Hourly Rate 288 50% 36 $45 $233,280 -$15,552 Which one has the biggest impact on the business? 348 60% 80 $45 $751,680 $502,848 Whenever you think about New Revenue Opportunity = $502,848 growing your business – think LOS first!

Inquiries I:E LOS Avg. Tuition Revenue Earned Hrly A Closer Look at Rate LOS 288 50% 36 $48 $248,832 The following grid shows you that just by focusing on LOS 288 50% 36 $48 $248,832 – increasing the average from $0 36 hours to 80 hours is the key to growth past $500K 288 50% 36 $48 $248,832 $0 Notice that this example 288 50% 80 $48 $552,960 lowers the hourly rate from $304,128 $48 to $45, to provide some 288 50% 36 $45 $233,280 additional room for -$15,552 discounting, while having little effect on growth. 288 50% 80 $45 $518,400 $269,568 So if LOS is the key to New Revenue Opportunity = $269,568 success, then how do you go from Good to Great in driving LOS?

Selling to Reflect Your Goals If we agree that LOS is the biggest driver of success, then shouldn’t our pricing and selling options reflect that fact? Here is a copy of one of our pricing sheets – slightly modified for this presentation. Can you infer from looking at our sales sheet how we’re trying to sell? WE SELL LENGTH OF STAY WE MAKE LENGTH OF STAY EASY OUR GOAL IS TO A VERAGE >100 LOS’s

Mindset Let’s Review the Pro’s and Con’s -Less cash upfront (potentially) - Higher LOS & RPE (lifetime) -Frequency can be more difficult with -Easier to Sell families on a tight budget; but that’s -More Cash at Beginning of each what financing is for month – as student count & monthly -Less cash received initially if you payers build already have a strong track-record -Financing becomes less critical to with PP and loans; this normally gets center success evened out within 4 -5 months -Eliminates the need to “self-finance” because families pay as they go -Y ou get a Prepay & Monthly Payer -Sticker shock is reduced Need some proof?

Accountability to Reflect Our Goals Hours Since we are in the business of selling 0 1 st 15 Days Sold tutoring hours it makes sense to track 38 of March our sales daily and monthly. 0 200 60 100 Here is an extract of Sylvan of San 0 0 Marino’s “Hours Sold” Column from 0 the month of March. What can you 0 observe? 40 166 250 0 2 nd 15 Days 60 0 of March How many 0 100 hours do I 300 8 need to sell to 0 get to 150+ 160 FTE? 60 0 0 0 113 0 0 0 1047 250 1905 858 Total If you sell the hours . . . They will probably use the hours!

Here’s some numbers to set your “mindset” at ease

Here’s some numbers to set your “mindset” at ease

Here’s some numbers to set your “mindset” at ease

Good to Great Mindset Change •Mindset moved from •Mindset moved from chasing money to “Problem-Solution” Selling 100+ hour selling to Long-Term Programs Benefits of Tutoring Promote Focus on Long-Term Hours Sold Benefits Deliver Focus on Great Billable Service Hours •Once your out of •Once we sell a plan, we survival mode, you’ll be drive attendance and less stressed and free to encourage 50 hour focus on serving kids! upgrades to boost LOS even further

Vegas Mindset . . . finally, a beer, a donut, and a little break from all these numbers

It’s Time to Find a Sales Model that Works for Today! Lessons from Bismark, North Dakota BISMARK SUCCESS STORY

A Little About me • Yes- you counted right- I have 4 kids! • Hubby own a construction business • Love to be outside • I am a Sylvan mom

Good to Better • 2013 $625,085 • Joined Sylvan in 2006 • Started “helping” in 2009 • 2014 $958,625 • Enroll in 2012 • First EC May 11, 2012 • 2015 $1,016,213 • First FOA 2014 • First National Conference 2014 • Second National Conference 2015

Our Sylvan Stepping Stones • Believe in what you do • Collaboration and Teamwork • Drive Revenue with your sales model • Create Processes • Be Resourceful

Believe in what you do: Mindset • Good: We have good products. • Better: We have better products- here’s why • Great: We are the best! You get what you pay for and it will be worth every penny! I believe this because of my own experience as a Sylvan Mom.

Collaboration and Teamwork Ryan & Kari work to set up goals. We break goals down so we can • • figure out how to get there. For example: • Ryan makes them SMART goals. • We are projecting $30K under in • the month of May. Our bonus comes solely from • We know we need 30 • earned revenue enrollments in March and April- averaging 4 hours a week to get Bonus: monthly payout of 50% • there. with 50% put in escrow to be paid We can add another ACT Class • at the end of the year if we make too to make up for lost revenue in goal. March to help hit annual goal. Start RTA calls, care calls, • Bonuses are NOT individual. We • EMMA’s. No School Testing day have to work together to get More frequency = less students. • bonus.

Drive Revenue • Good: Use Todd’s Model to devise where you need to be with revenue (Students, frequency) • Better: Make a plan to get to the numbers you came up with and execute it! • Great: Make a plan, revise the plan, specialize for one area and watch everything grow