{"id":6474,"date":"2026-07-16T06:59:22","date_gmt":"2026-07-16T06:59:22","guid":{"rendered":"https:\/\/martialartswealth.com\/go\/triple-your-prices-the-jay-abraham-pricing-lesson-every-martial-arts-school-owner-needs\/"},"modified":"2026-07-29T02:53:41","modified_gmt":"2026-07-29T02:53:41","slug":"triple-your-prices-the-jay-abraham-pricing-lesson-every-martial-arts-school-owner-needs","status":"publish","type":"post","link":"https:\/\/martialartswealth.com\/go\/triple-your-prices-the-jay-abraham-pricing-lesson-every-martial-arts-school-owner-needs\/","title":{"rendered":"Triple Your Prices: The Jay Abraham Pricing Lesson Every Martial Arts School Owner Needs"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The fastest way to grow martial arts school profit is to raise your prices. Well-coached schools charge $347\u2013$397 per month for new students \u2014 roughly double the industry average \u2014 and because a price increase adds almost no cost, nearly all of it drops to the bottom line. Jay Abraham taught Andrew Wood that lesson the hard way.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"epyt-video-wrapper\"><iframe loading=\"lazy\"  style=\"display: block; margin: 0px auto;\"  id=\"_ytid_98831\"  width=\"800\" height=\"450\"  data-origwidth=\"800\" data-origheight=\"450\"  data-relstop=\"1\" src=\"https:\/\/www.youtube.com\/embed\/2QhNq-nhA_I?enablejsapi=1&#038;autoplay=0&#038;cc_load_policy=0&#038;cc_lang_pref=&#038;iv_load_policy=1&#038;loop=0&#038;modestbranding=1&#038;rel=0&#038;fs=1&#038;playsinline=0&#038;autohide=2&#038;theme=dark&#038;color=red&#038;controls=1&#038;\" class=\"__youtube_prefs__  epyt-is-override  no-lazyload\" title=\"YouTube player\"  allow=\"fullscreen; accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen data-no-lazy=\"1\" data-skipgform_ajax_framebjll=\"\"><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Watch the original video above \u2014 it&#8217;s fifteen minutes of Andrew Wood and me trading pricing war stories \u2014 then let&#8217;s dig into the lesson underneath them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Breakfast That Turned a $10,000 Monthly Loss Into $60,000 in Profit<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">I&#8217;ve known Andrew Wood since the 1980s. Before he became one of the top marketing minds in the golf business, he built a chain of karate schools in California, and he founded Martial Arts Business magazine \u2014 I was on the cover of an early issue, and we&#8217;ve been trading notes on pricing and marketing ever since. This conversation is one of my favorites, because Andrew tells the story of the most expensive breakfast of his life \u2014 and the most profitable.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After Andrew sold out of the school business the first time, he built an information business for school owners: a hundred members paying $79 a month, plus seminars all over the country, books, manuals, tapes, and the magazine. It looked successful from the outside. The reality: he was grossing about $40,000 a month and losing $10,000 a month. Every month. He had pulled all the equity out of his house, run up $127,000 in credit card debt, and was still driving the Porsche and telling everybody else how to succeed. His own description of himself at the time: big house, kids in private school, drowning in debt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A friend arranged a breakfast meeting with Jay Abraham \u2014 the marketing strategist famous for finding hidden assets inside struggling businesses. Jay grilled him for three hours. How many people are in your database? What do they pay you? What else do you sell them? Finally Jay stood up, said, &#8220;You&#8217;re so smart \u2014 figure it out yourself,&#8221; and walked out of the restaurant. Then he came back in, sat down, and started over:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;How much money are you making?&#8221; &#8220;Forty grand a month.&#8221; &#8220;How much do you want to make?&#8221; &#8220;Sixty. At sixty I&#8217;d be making twenty instead of losing ten.&#8221; &#8220;Double your prices.&#8221; A pause. &#8220;No \u2014 triple them.&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Andrew went home and did exactly that. He repackaged the $79 club as a Master&#8217;s Club at $250 a month \u2014 same expertise, dramatically better packaging, three times the price. Within 90 days he went from grossing $40,000 and losing $10,000 to grossing $120,000 and keeping $60,000. He didn&#8217;t add a single new marketing channel. He didn&#8217;t work harder. He changed the pricing and the packaging, and virtually the entire increase fell straight to the bottom line.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s the part most school owners miss. A price increase carries almost no incremental cost \u2014 no extra rent, no extra payroll, no extra insurance. When your gross goes up because you enrolled more students, expenses climb with it. When your gross goes up because you raised your prices, nearly every additional dollar is profit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Price Is the Most Powerful Lever in Your School<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Run the numbers on a typical school stuck at the industry average. Two hundred students at $150 a month is $30,000 in gross revenue. If expenses run $27,000 \u2014 rent, payroll, insurance, marketing \u2014 the owner keeps $3,000. Now raise the average to $225, a 50 percent increase, with the same student count: gross becomes $45,000 against essentially the same $27,000 in expenses, and the owner keeps $18,000. A 50 percent price increase just produced a 500 percent profit increase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&#8220;But I&#8217;ll lose students.&#8221; Some, yes \u2014 and the math still wins. Andrew and I have both lived a version of the same story. A school hits 250 students and runs out of space. The unit next door opens up, and the owner faces doubling the rent plus hiring another instructor to fill it. Instead, he raises prices roughly 50 percent. Attrition trims the active count from 250 to about 200 \u2014 but new prospects enroll just as easily at the higher rate, and net income rises almost 50 percent. Fewer students, no new rent, no new payroll, less chaos, more profit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The economics textbooks call it price elasticity \u2014 raise prices 20 percent, lose 20 percent of your volume. Martial arts schools rarely behave that way, and in the video we talk about why: in the mid-1980s, in a 2,500-square-foot school running over 500 students, every price increase was followed by more enrollments, not fewer. Price determines perception of value. Absent other criteria, your prospective member has no way to judge quality except what you charge \u2014 and 99 percent of the time they haven&#8217;t shopped the market at all. When they do shop it, frankly, most of the industry is unimpressive. If you&#8217;re doing a halfway decent job, the question in the prospect&#8217;s mind is not &#8220;this school at this price or that school at that price.&#8221; They want your program, and they&#8217;ll pay what you&#8217;re asking if they can afford it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Jay Abraham&#8217;s Three Ways to Grow a Business \u2014 Applied to Your School<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Jay Abraham is famous for reducing all business growth to three levers: get more customers, increase the value of each transaction, and get customers to buy more often \u2014 or stay longer. Here&#8217;s how each lever maps to a martial arts school.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lever 1: Enroll More Students<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is the only lever most owners ever pull, and it&#8217;s the most expensive one. Every new student costs five to seven times more to acquire than to retain \u2014 typically $150 to $300 per enrollment in ad spend and staff time by the time you count the calls, intro lessons, and follow-up. Marketing matters enormously, but if it&#8217;s the only lever you pull, you&#8217;re paying full price for water while ignoring the holes in the bucket.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lever 2: Increase the Value of Every Student<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This is the pricing and packaging lever \u2014 Jay&#8217;s &#8220;triple them&#8221; lever. It includes your new-student tuition, your upgrade pathway into Black Belt Club and leadership-track programs, testing cycles, events, and equipment. Top, well-coached schools charge $347 to $397 a month for new-student tuition; use $375 in your planning math. The industry average of $140 to $185 is the commodity trap \u2014 the pricing equivalent of Andrew&#8217;s $79 club: respectable-looking on the surface and quietly bleeding out underneath.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Lever 3: Keep Every Student Longer<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The industry loses 3 to 5 percent of its students every month. Well-coached schools target below 2 percent. That single difference roughly doubles average student tenure \u2014 from about 25 months at 4 percent attrition to 50-plus months below 2 percent. It&#8217;s also why the 12-month Trial Enrollment matters: enrolling new students into a structured, school-led, year-long evaluation for the full Black Belt program \u2014 rather than loose month-to-month \u2014 changes the psychology of commitment from day one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Multiplier Effect<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Jay&#8217;s deeper point is that the levers multiply. Look at lifetime value. A commodity school at $150 a month with 4 percent monthly attrition has a student worth about $3,750 ($150 \u00d7 25 months). A premium school at $375 with sub-2 percent attrition has a student worth about $18,750 ($375 \u00d7 50 months). Same student, same mat space \u2014 five times the lifetime value. And that LTV gap decides who wins the marketing war: the school whose student is worth $18,750 can cheerfully spend $300 to acquire an enrollment, while the $3,750 school agonizes over every ad dollar.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Pricing Power Triangle<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Ask a school owner why they charge what they charge and you&#8217;ll get the answer Andrew hears from his golf clients: &#8220;We raised it from what we were charging before, because somebody told us to raise our prices.&#8221; Why $160 and not $260? &#8220;I modeled somebody else.&#8221; There&#8217;s no formula \u2014 just folklore, plus &#8220;that&#8217;s what the market will bear&#8221; from owners who have never once tested what the market will bear. So let me give you a deliberate replacement, a framework I call the Pricing Power Triangle. It has three sides: Position, Package, and Price. Get all three right and premium tuition stops being scary and starts being obvious.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Side 1 \u2014 Position: Fish Where the Money Is<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">There&#8217;s a distinction in sales between an objection and a condition. An objection can be answered. A condition can&#8217;t: you can&#8217;t fix broke. If you have the choice of presenting your program to people who have money or to people who don&#8217;t, pick the ones who have money \u2014 then it becomes purely a question of value, never of capability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Around the time of this conversation, I&#8217;d been through the numbers with two member schools I was coaching. One had run 20 intro appointments and enrolled 16. The four who didn&#8217;t enroll all &#8220;objected to the price&#8221; \u2014 but when we dug in, those four families couldn&#8217;t have afforded the program at $50 a month. No script, no discount, no payment plan fixes that. Four out of twenty were simply broke \u2014 and if a big share of your prospects are broke, that&#8217;s not a pricing problem, it&#8217;s a marketing problem. Sometimes it&#8217;s even a location problem: if your school sits in a ten-mile radius of broke people, that was a marketing decision too, and occasionally the honest fix is to relocate \u2014 even if you&#8217;ve been there ten years and know everybody.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">My target market has always been explicit: college-educated parents, 35 and up, mostly professionals, many with postgraduate education, with kids. Even in a rough economy, unemployment in that demographic runs around 4 percent. They&#8217;re fine. Position your school in front of them and premium pricing meets almost no real resistance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Side 2 \u2014 Package: Build Something Worth $375 a Month<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Jay&#8217;s advice to Andrew wasn&#8217;t just &#8220;triple the price.&#8221; The operative question that followed was: what else can we put in the box to make it more valuable? The old $79 club shipped an ad slick and a video. The $250 Master&#8217;s Club shipped a package so well produced that Andrew calls it a forerunner of Apple&#8217;s packaging. Price and packaging moved together \u2014 that&#8217;s why the market accepted the triple.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a school, the package is the 12-month Trial Enrollment \u2014 a structured, school-led evaluation of whether the student is a fit for the full Black Belt program \u2014 plus everything wrapped around the classes: a real curriculum with visible progress, regular goal-setting reviews, genuine parent communication, leadership training, events, and a clean, professional facility staffed by career instructors. And here&#8217;s the virtuous circle most owners never see: premium pricing funds the package. A school charging $375 can hire better instructors, maintain better facilities, and deliver more service \u2014 which justifies the very price that funds it. Great martial arts and great business are not opposites; they&#8217;re inseparable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Side 3 \u2014 Price: Set It From the Life You Want, Not the Market Average<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Andrew prices his golf-industry consulting at $10,000 a day plus expenses \u2014 not because a survey told him to, but because he only wants to do one engagement a month, and every out-of-state day is really three days once you count travel. He raised the fee from $8,000 to $10,000 and demand didn&#8217;t move. His pricing principle: charge based on what you want to make and how hard you want to work \u2014 not on what you guess the market will bear.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Run the same arithmetic on a school. Five hundred students at $75, or 250 students at $150, or 125 students at $300 all gross the same money \u2014 and describe three completely different lives. The premium version means fewer students taught better, less square footage, lower payroll, deeper relationships, and instructors who aren&#8217;t burned out. When you set new-student tuition, anchor to the top of the industry \u2014 $347 to $397 \u2014 and work backward from the income you want and the school you want to run. The one thing you must not do is what almost everyone does: copy the underpriced school down the street, which copied another underpriced school, all the way down.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Ferrari Test: Price Objections Are a Reflex, Not a Verdict<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While Andrew and I were together in San Diego, we wandered into the Bentley\u2013Ferrari dealership in La Jolla, where a gray Ferrari convertible sat at $167,000. If I were in the market, would I rather pay $140,000? Of course. $110,000? Sure. Fifty bucks? Absolutely. Any price lower than asking would be my preference \u2014 and that&#8217;s not an objection, that&#8217;s being human. One hundred percent of buyers would prefer to pay less, including your Black Belt families who happily pay premium tuition. So when a prospect says &#8220;that&#8217;s a lot of money for karate lessons,&#8221; don&#8217;t confuse the reflex with a refusal.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The only signal worth watching is your ratios. And here&#8217;s the trap: when you raise prices, your enrollment ratios drop immediately \u2014 not because the market rejected the number, but because you don&#8217;t believe it yet, or the person presenting it doesn&#8217;t. If you don&#8217;t believe your own price, you will subliminally convey &#8220;this is too much, you shouldn&#8217;t pay it,&#8221; and prospects will obligingly agree. Fix the belief and the presentation first; the ratios recover. One rule of thumb from our conversation: if at least half the people walking through your door don&#8217;t so much as blink at your price, you&#8217;re priced too low. Objections at the margin are evidence you&#8217;re finally charging what you&#8217;re worth \u2014 and handling them cleanly is a skills issue, which is exactly why we drill enrollment conferences so hard in our <a href=\"https:\/\/martialartswealth.com\/go\/grow\/sales\/\">sales training for school owners<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Million-Dollar Math at $375 a Month<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A million-dollar school is $83,333 a month. At $375 tuition, that&#8217;s 222 active students before you count upgrades, testing cycles, and events \u2014 meaning a single location with 250 actives, sub-2 percent attrition, and premium pricing is a million-dollar school. Try the same at $150 and you need 556 active students: double the space, double the staff, double the parking problems, and a fraction of the margin. Pricing is the difference between a million-dollar school that fits in one building and one that never happens. It&#8217;s the same path our <a href=\"https:\/\/martialartswealth.com\/go\/grow\/million-dollar\/\">million-dollar school owners<\/a> have walked: position premium, package premium, price premium \u2014 then let Jay&#8217;s three levers multiply.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And remember what the multiplication did for Andrew: ninety days, same list, same expertise, triple the price \u2014 from losing $10,000 a month to keeping $60,000. Your version won&#8217;t be identical. But if you&#8217;re grossing decent numbers and keeping crumbs, decades of coaching school owners tells me it is far more likely a pricing problem than a marketing problem.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">How much should a martial arts school charge per month?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Top, well-coached schools charge $347 to $397 per month for new-student tuition; use about $375 as your planning anchor. The industry average of $140 to $185 is a commodity trap that starves the school of the profit it needs for great instructors and facilities. Because prospects judge quality largely by price, premium tuition also raises perceived value.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Will I lose students if I raise my prices?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Expect modest attrition among existing students and a temporary dip in enrollment ratios \u2014 driven mostly by your own hesitation, not by market rejection. New prospects enroll at essentially the same rate once you believe the number and present it confidently. In virtually every case I&#8217;ve coached, net revenue and profit rise substantially even with a somewhat smaller student count.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What if families in my area genuinely can&#8217;t afford premium tuition?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">First verify it&#8217;s a condition and not your belief system \u2014 most &#8220;poor areas&#8221; contain thousands of college-educated professional families with roughly 4 percent unemployment, so aim your marketing at them. If your location truly sits in a ten-mile radius of people who can&#8217;t pay $50 a month, that&#8217;s a marketing and location problem, and relocating may be the single best business decision you can make.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Your Next Step<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Pull one lever this month: set your new-student tuition into the $347\u2013$397 range, rebuild the package around a 12-month Trial Enrollment, and watch your ratios \u2014 not your fears. Then go deeper into every <a href=\"https:\/\/martialartswealth.com\/go\/grow\/pricing\/\">pricing strategy for martial arts schools<\/a> in our pillar hub.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Better yet, let&#8217;s look at your numbers together. <a href=\"https:\/\/martialartswealth.com\/go\/grow\/pricing\/\">Book a Free Personal Evaluation (a $1,297 value)<\/a> and my team and I will walk through your pricing, packaging, and enrollment ratios and show you exactly where the profit is hiding \u2014 the same way Jay Abraham found Andrew&#8217;s.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">About the Author<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Stephen Oliver, MBA and 10th Degree Black Belt, is the Founder and CEO of Mile High Karate and Martial Arts Wealth Mastery, CEO of NAPMA (National Association of Professional Martial Artists), and Publisher of Martial Arts Professional magazine. A martial arts school owner since 1975, he and his coaching team \u2014 including Grandmaster Jeff Smith and Dr. Greg Moody \u2014 have helped school owners across the world build $1M+ schools.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jay Abraham told Andrew Wood to triple his prices \u2014 and within 90 days a $10,000 monthly loss became a $60,000 profit. Here&#8217;s how the same pricing lesson builds premium, million-dollar martial arts schools.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"{title}\n\n{excerpt}\n\n{url}","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false,"jetpack_post_was_ever_published":false},"categories":[25],"tags":[],"class_list":["post-6474","post","type-post","status-publish","format-standard","hentry","category-pricing-tuition"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Triple Your Prices: The Jay Abraham Pricing Lesson<\/title>\n<meta name=\"description\" content=\"Jay Abraham told Andrew Wood to triple his prices, and within 90 days a $10,000 monthly loss became a $60,000 profit. 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