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

Model and Strategy

Center Director Maren Gerhardt

Execution and Experience

Sales Strategy – Getting from Good to Great

My Old Sales Model (Paradigm)

Key Focuses

• Directors were focused on

bringing in cash

• Financing and loans were

the big focus

• Prepays were a big focus

Outcomes

• Directors were always focused
• n bringing in cash revenue –

which was good.

• Good months were good, but

bad months were real bad (lots

• f monthly volatility) – “Live

by the Pre-Pay, Die by the Pre- Pay”

• The bottom line, however, was

that we were NOT sustaining any YOY growth in our retail business.

I knew I should ‘ve bought a Dunkin’ Donuts!!

Where did this model come from?

The Virtual Cycle of 2000 to 2008

The American Middle Class felt financially empowered Americans were comfortable with financing – and it was easy to get Sylvan introduced financing as a preferred payment method –and most monthly payers were

• utsourced

LOS and student enrollment increased, kids make more progress Many centers raise rates in response to higher demand and increased advertising costs, and the system expands

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

Where has this model left us now?

The Vicious Cycle from 2009 to Present

OUR GOAL OR “MODEL” IS $500K+

It’s Time to Find a Sales Model that Works for Today!

First – Some Basics

AVG 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

Student Count Table - Getting to 150 Students

AVG Monthly Enrollments

#1 – The path to growth is grounded in basic math.

“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.

AVG 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 133 1067 1333 1600 1867 2133 2400 160 1280 1600 1920 2240 2560 2880 200 1600 2000 2400 2800 3200 3600 267 2133 2667 3200 3733 4267 4800

AVG Monthly Enrollments

FTE Billable Sessions - Getting to 1,200

Remember 1,200 for later

Now let’s Understand the KPI’s - “Quick Business Development Grid”

Inquiries I:E LOS Avg. Earned Hrly Rate Tuition Revenue 288 50% 36 $48 $248,832 348 50% 36 $48 $300,672 $51,840 288 60% 36 $48 $298,598 $49,766 288 50% 80 $48 $552,960 $304,128 288 50% 36 $45 $233,280

• $15,552

348 60% 80 $45 $751,680 $502,848

$502,848

New Revenue Opportunity =

Available on SLCLink at Sales>Enroll Operations Gives you a quick way to analyze the impact of the BIG 4

• 1. Inquiries
• 2. Conversion of Inquiries
• 3. LOS
• 4. Hourly Rate

Which one has the biggest impact on the business? Whenever you think about growing your business – think LOS first!

A Closer Look at LOS

The following grid shows you that just by focusing on LOS – increasing the average from 36 hours to 80 hours is the key to growth past $500K Notice that this example lowers the hourly rate from $48 to $45, to provide some additional room for discounting, while having little effect on growth. So if LOS is the key to success, then how do you go from Good to Great in driving LOS?

Inquiries I:E LOS Avg. Earned Hrly Rate Tuition Revenue 288 50% 36 $48 $248,832 288 50% 36 $48 $248,832 $0 288 50% 36 $48 $248,832 $0 288 50% 80 $48 $552,960 $304,128 288 50% 36 $45 $233,280

• $15,552

288 50% 80 $45 $518,400 $269,568

$269,568

New Revenue Opportunity =

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

• Higher LOS & RPE (lifetime)
• Easier to Sell
• More Cash at Beginning of each

month – as student count & monthly payers build

• Financing becomes less critical to

center success

• Eliminates the need to “self-finance”

because families pay as they go

• Y
• u get a Prepay & Monthly Payer
• Sticker shock is reduced
• Less cash upfront (potentially)
• Frequency can be more difficult with

families on a tight budget; but that’s what financing is for

• Less cash received initially if you

already have a strong track-record with PP and loans; this normally gets evened out within 4 -5 months

Need some proof?

Accountability to Reflect Our Goals

Since we are in the business of selling tutoring hours it makes sense to track

• ur sales daily and monthly.

Here is an extract of Sylvan of San Marino’s “Hours Sold” Column from the month of March. What can you

• bserve?

If you sell the hours . . . They will probably use the hours!

Hours Sold

200 100 40 100 8 160 250 858 1st 15 Days

• f March

2nd 15 Days

• f March

38 60 166 250 60 300 60 113 1047 1905 Total How many hours do I need to sell to get to 150+ FTE?

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

• Once we sell a plan, we

drive attendance and encourage 50 hour upgrades to boost LOS even further

• Once your out of

survival mode, you’ll be less stressed and free to focus on serving kids!

• Mindset moved from

“Problem-Solution” selling to Long-Term Benefits of Tutoring

• Mindset moved from

chasing money to Selling 100+ hour Programs

Focus on Hours Sold Promote Long-Term Benefits Focus on Billable Hours Deliver Great Service

Vegas Mindset

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

BISMARK SUCCESS STORY

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

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
• 2014 $958,625
• 2015 $1,016,213
• Joined Sylvan in 2006
• Started “helping” in

2009

• Enroll in 2012
• First EC May 11, 2012
• 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.
• Ryan makes them SMART goals.
• Our bonus comes solely from

earned revenue

• Bonus: monthly payout of 50%

with 50% put in escrow to be paid at the end of the year if we make goal.

• Bonuses are NOT individual. We

have to work together to get bonus.

• We break goals down so we can

figure out how to get there.

• For example:
• We are projecting $30K under in

the month of May.

• We know we need 30

enrollments in March and April- averaging 4 hours a week to get there.

• We can add another ACT Class

too to make up for lost revenue in March to help hit annual goal.

• Start RTA calls, care calls,

EMMA’s. No School Testing day

• More frequency = less students.

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

Drive Revenue: ACT Prep

• 2012-13: $29,539
• 2013-14: $30,268
• 2014-15: $32,395
• 2015-16: $48,688 (3/24)

Good: Maintain Better: Get $50 K Great: $50K and a school contract

• ACT Calendar done in May

for the following school year

• Cross Train Staff to sell class.

Use 6 day process, Special follow up section.

• Market: Emmas, Direct mail,

RTA calls, center Diag Day is any Saturday

• School Diag Days
• Mini Camp- 23 kids in 2

weeks.

• Survey showed ALL mini

campers want info on the full class.

Drive Revenue Core Programs

• Good: Conform to

everything a parent wants

• Better: Listen to parent

and make a recommendation

• Great: Collaborate with

parent and become the coach!

• Frequency- OC’s are bragging

sessions

• Training- Keep everyone up to

date

• Reflecting- what worked, what

didn’t, what can be better.

• Listening- Always, Always be

present

Collaborate and Be the Coach

• Shift the conversation after you make the sale

– “I’m going switch from teacher mode to coach mode. We have a goal and you just hired me to make sure we get there. Let’s talk about what that looks like for you and me”

• Forecast planner is your BFF, pair with “smart” calendar.

– Use analogies based on clues from parents!!

• Policies are basic accountability for you and parents.
• Excused absences: parents are taught to have a plan for them.
• OC’s are rally sessions for that goal and parents ask. Set the tone

for ups and downs in the EC.

• Set the tone for LOS from the beginning. Families deserve know if

this will be 6 months or 14 months. This drives frequency for you.

Create Processes

• Good: Use docs on SLC link, Enroll training,

etc.

• Better: Tweak for your center
• Great: Tweak for your center and add little

details to create efficiencies

Be Resourceful & Open-minded

• Good: SLC Link
• Better: SLC Link, Zee TV’s, FOA calls
• Great: SLC Link, Zee TV’s, FOA calls, Your Email

list of Sylvan friends, Team Collaboration (Win

• f the week, teamwork example),

The only thing that is constant is change

• 1. Believed in what we do
• 2. Collaboration and

Teamwork

• 3. Drive Revenue with

your sales model

• 4. Create Processes
• 5. Be Resourceful

How I used to think about growth . . .

Focused on Money (Received Revenue) Prepays and Financing were the Strategy Each month seemed to start at zero

Take a Closer Look? “RPE vs. A VG Hourly Rate”

$33/hour

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

$0 $50,000 $100,000 $150,000 $200,000 $250,000

Earned Revenue

2014 2015 2016