Strategies to expand your test prep offerings      www.testprepprofessionals.com

Diversifying SAT/ACT Offerings in a cost effective way If one visits a major test prep company's website, one is likely to see a number of offerings beyond the standard tutoring packages or classroom course.  Lets look at the SAT since it is timely.  If we visit either of the two largest companies, we are likely to see:   1) The standard classroom course   2) some sort of intensive short course   3) standard tutoring package offerings   4) small group tutoring.   Moreover, we are likely to see each of the categories above segmented  even further into online and in - person options. I chose the word "segmented" by design because this sort of brand diversification is essentially known as a segmentation strategy.  Without going into too much detail, the general premise of segmentation strategy is that consumers span a continuum. What I mean by this is that some consumers want the standard classroom offering while others want face to face attention, and still others prize convenience over all else.  To expand even further, price sensitivity exists along the continuum as well.    Given these variables, there is a strategic benefit to crafting courses or offerings that match the varying needs along the consumer continuum.  Said differently, having more than one offering  is important in order to span the continuum.   The result is a series of different value propositions designed to meet varying consumer needs.   Large test prep and tutoring companies have the advantage of resources and are therefore well suited to employ this strategy in order to capture as much market share as possible. So, what can smaller concerns do to join in the fun?  Interestingly, small companies can be effective following an approach similar to that of the big guys.  Here are some general recommendations. 1)  For classes:  Take a good look at your curriculum and determine if you can reduce the content to some core offerings that could fit into an "intensive" format.  This may mean reducing 18 contact hours and 3 proctored tests to 8 contact hours and 2 tests.   Something like this could theoretically fit into aweekend only offering or a one week intensive class.  The price point could be reduced because the overhead expenses (room rental, instructor time etc.) are reduced. 2) For tutoring:  Consider small group offerings that target key parts of the curriculum.  Again, the overhead is reduced and the profitability enhanced because one tutor will have more than one student, therefore the margin of profit is essentially increased by a factor equal to the  number of students.  I would be remiss if I did not point out that it is good form to compensate your instructors  at an elevated level since they are on the hook for more work.  Also worth noting, small group tutoring is most effective when the group of students being  instructed has a similar set of  competencies. 3) For either:   Timing is important.  As the exam date draws nearer, the subset of students who have not adequately prepared grows larger.   This is an opportunity so be ready for it.  Marketing messages should focus on this subset of learners.  Don't forget to name your new offering;   names like"intensive,"  or "boot-camp,"  or "short course"  resonate well. 4) Expertise worth something:   Proctored exams with item-analysis feedback and teach-back sessions for a nominal fee have merit.  The expenses are typically reasonable (a room, a proctor, and maybe 2 hours of instruction 1 week later).   Most big companies will use this as a loss-leader (i.e. FREE)  to increase awareness and enter practice-test takers into their lead queue.  Still, the big companies cannot be everywhere. 5) Lastly, at some point having the ability to offer online products will reach a tipping point in our industry.  After a good deal of research, I have only been able to find one company that offers (SAT) white label supplemental programs for a reasonable price to test prep providers.  By reasonable I mean $80 - $100 per student for two to three online diagnostic tests, about 500 quiz questions, and complete video explanations.  You can access their site here  SAT Supplemental Online Offerings.  Scroll down the landing page to find out more. These are just some general ideas to consider.  The key take-away is that an existing product or curriculum can be segmented into a series of additional offerings or value propositions without adding a great deal of expense.

Discount strategy:  fill your SAT classes now www.testprepprofessionals.com

SAT Spring Discount Strategy If you're like me, you are probably being inundated by Cable/Satellite/FioS mailers and email campaigns.  Generally speaking, each company  is incentivizing consumers to sign up for their service.  Sometimes this can be a tangible incentive (I got a small flat screen TV some years back); other times it comes in the form of  things like "feature-based" messaging, price-locks, or discounts.   The ultimate goal for the purveyor of the incentive is to gain market share through a customer commitment.  These days Test Prep is no different.  Because Test Prep has become commoditized, Test Prep companies have become equally aggressive with incentives.  At this time of year  SAT Discounts are ubiquitous. Why now and why discounts?   Essentially, this boils down to capturing and keeping market share ahead of the June and October SAT Exams  (the two largest).  Since classes start in one form or another between now and the Fall exam, this time of year is ideal to fill classes as quickly and as efficiently as possible.  The fact that many consumers receive tax refunds in April-May does not hurt either. The major players in Test Prep will offer something like $100 Off for a defined period of time.  Discounting has become more nuanced with the advent of Social Media Marketing and Brand Communities.  Twenty-four hour discounts, or something similar, for Facebook Fans is a simplistic example.   But for our purposes, and on a more basic level, one can find post-cards and emails with $100 Off offers just about everywhere. Getting back to the main point about market share, selling two test dates vs. onecreates the potential for a better marketing ROI (return on investment).  On a more strategic level with regard to positioning for the October test, the more students one can enroll early in an enrollment cycle the greater the opportunity to fill classes, gain market share, and re-position for the late Summer offerings.  If I fill all my classes now, I can decide to add boot camps, weekend-only classes, or even late starts if demand dictates.    I can also capture revenue in the form of deposits and thereby increase cash flow which is never a bad thing. How have we gotten to this point?   The fact that there are few barriers to entry combined with the fact that many SAT course features are often seen as roughly equivalent are at least two forces driving the commoditization phenomenon.  This leads to a dynamic where differentiation is being fashioned through aggressive pricing strategies such as early or late discounts. So what can you do if your not one of the Big Test Prep concerns but have a good SAT course?   Simply put, nullify any perceived competitor advantage: 1) Make sure your features are as good as or better than the competition (think number of class hours and proctored exams). 2) Compete using a "convenience factor."  (think location, times, days of the week your classes are offered). 3) Determine your margin if you were to offer a discount.  If you have to sacrifice a % point or two to fill your classes earlier in the season and increase your cash flow, you may be pleasantly surprised with the overall volume of enrollments resulting from this tactic. 4) Look to current or past clients.  If you have an existing client base,  discounting becomes a bit easier implement and much more deliberate in nature. 5) Finally, and this is key, look to develop Hybrid Course Offerings through online classes, test questions, etc.  There is a least one company out there whose products are designed to empower smaller concerns (link provided above).    The purpose here is to compete more effectively with feature-laden courses. At the end of the day, the dynamic facing Test Prep and Tutoring providers boils down to a form of Game Theory: if one  can nullify a competitor's  advantages one has a better chance to compete on value and reputation.   Said differently, if features, access, and pricing are perceived to be equivalent, one can compete on the quality of the classroom experience.  Assuming you have a good course staffed by good instructors, consider a short term discount to grab some market share. Good Luck!

Grass-roots strategy for test prep and tutoring

Grass roots marketing strategy  for test prep and tutoring companies. Many tutoring organizations start out with the premise "if you build it, they will come." This approach is a great foundation for a referral based business--and that is terrific.  There is no better advertising than a referral from a satisfied customer.  Many of the folks we work with have grown into six digit entities by doing little more than providing excellent service and high quality tutors; this in turn generally creates excellent word of mouth and therefore referral business. Moreover, these concerns have had success extending their brand recognition by providing above average pay rates to their tutors.  After all, happy employees are the easiest to turn into brand ambassadors.  The result is a virtuous and self sustaining business. At a certain point though,  this business model plateaus--that is to say--year over year revenue growth settles between 1-3%...and this can become problematic.  Why? Primarily because 1-3% on the top line has to be able to cover any sort of annual increase in expenses if one is hoping to retain a profit margin similar to that from the previous year.    Confounding factors for such nominal growth include:  employee raises (typically between 1-3%)  and planned innovation or product development costs (sometimes well over 3%).  Since tutoring is quite dynamic, most companies seek to improve their product or services each year and the most successful companies tend to reinvest a portion of their profit in the direction of product development.  Hence, there is a need for the revenue, or top line growth, to align with the company's overall strategic growth plan. Although there are plenty of exceptionally good and cost effective ways to build brand awareness via things like Search Engine Optimization, E-mail marketing, and Social Media, these options often have a learning curve as well as a level of unfamiliarity that requires research and testing before one learns the best mix.   How then can you as the leader of a six digit tutoring concern have a more immediate and tangible impact on generating awareness and by implication revenue growth?  Simply put:  Grass Roots marketing.  Grass roots marketing is a low cost brand building approach.  It can be labor intensive but doesn't truly have to be if it is embraced by all in the organization and integrated into normal daily activities.   Before I go further, I feel compelled to admit that in this day and age grass roots marketing in and of itself may give you a timely lift, but it is not a panacea for true and sustained growth over time.   Think of it as a valuable tool for your marketing tool kit. Here are some low cost ideas that I have employed with good effect over the years: 1)  Postering - Posters (or fliers) build brand awareness and allow one the flexibility to match a particular message to the sales cycle.  Good places to poster include areas where decision makers frequent.   For Graduate School programs (ie--GRE, GMAT, LSAT, MCAT) college campus boards are the ticket.  For Pre-College (ie--PSAT, SAT, AP, ISEE, ACT etc.), Try guidance counselor office boards, local coffee shops, town squares, local book stores, local JCCs, YMCAs, Churches, Synagogues, and sometimes public libraries.  Use "Tear Offs" as you get closer to a class start or an event date.  Always seek permission from locations where there is not a clear understanding that postings are allowed. 2) Desk-tops or table tops-One can use the same template used for posters to desk-top.  Simply shrink to fit four copies to an 8 1/2 x 11 piece of paper.  Again, the theory is the same, place these in public areas, dining halls, coffee shops etc.  Be sure to maintain the area and clean up the left over papers by the end of each day. 3)  Targeted Canvasing-Canvasing can be hit or miss and essentially involves placing the same item mentioned in point #2 on the windshield of cars.  I would suggest using this primarily for Pre College programs and being careful to target your audience.  For example, if there is a College Admissions Night at a local high school the parking lot may be packed with your target audience.   The same rule as mentioned above applies: be a good marketing citizen and clean up any mess created as a result of your efforts.  Also, I would recommend using this tactic sparingly;  many people, including myself, are not big fans.  it has to be targeted and timely! 4)  Career Fairs and Parent Night Tabling-Tabling essentially means setting up a table with your items when you know a captive audience will be moving from one point of interests to the next.  Always have good copy (this goes for all tactics) and be sure to offer some sort of give-away at the table that will allow folks to fill out information cards.  These information cards will form a small but targeted lead list which can be inculcated into a mailing or emailing strategy.  Invest in a branded table-skirt if at all possible and arrange your items vertically to draw attention from passers buy. 5)  Events-Hold your own Free Events when possible at local venues including but not limited to  high schools and/or  college campuses.  One can use point #4 as a companion piece and collect information cards through an event as well.  Typical events include:  Free Practice Tests (and a follow up teach back), Admissions Time Line events, or a sample Test Question Workshop.  Have an expert on hand to deliver the key information. These are just some basic ideas and, I suspect, many folks are probably using at least some of them.  The key to maximizing their impact, though, involves consistency.  Any sort of ad-copy placed out in public is a symbol of your brand and should be updated regularly and maintained appropriately.   If you choose to supplement your other strategies with grass roots tactics, be sure that the messaging is complementary.  Said differently, something like an email blast should contain a message that matches whatever  grass roots messages are visible to the public. Good luck! For more information about marketing strategies contact us at info@testprepprofessionals.com or call us at  617-285-4036.

Are your tutors employees or subcontractors?

Are your tutors employees or subcontractors?

Steps to determine if your tutors are employees or subcontractors The IRS test often is termed the “right-to-control test” because each factor is designed to evaluate who controls how work is performed. Under IRS rules and common-law doctrine, independent contractors control the manner and means by which contracted services, products, or results are achieved. The more control a company exercises over how, when, where, and by whom work is performed, the more likely the workers are employees, not independent contractors.  There are 20 criteria the IRS uses to make a determination. A worker does not have to meet all 20 criteria to qualify as an employee or independent contractor, and no single factor is decisive in determining a worker's status. The individual circumstances of each case determine the weight IRS assigns different factors. NOTE: Employers uncertain about how to classify a worker can request an IRS determination by filing Form SS-8, “Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding.” However, some tax specialists caution that IRS usually classifies workers as employees whenever their status is not clear-cut. In addition, employers that request an IRS determination lose certain protections against liability for misclassification. The common law test  The common law test: IRS examiners use the 20-factor common law test to measure how much control you have over the worker. These factors are reflected on IRS Form SS-8, (this form can be downloaded at www.irs.gov)“Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding.” You can fill out the SS-8, including the facts of your relationship with the worker, and submit it to the IRS to get a determination of whether the worker is your employee or not. The reasonable basis test  The reasonable basis test is considered a “safe harbor.” That is, if you can show you had a reasonable basis for treating a worker as an independent contractor, the IRS is prohibited from reclassifying the worker as your employee either prospectively or retroactively. You have a reasonable basis for treating a worker as an independent if one or more of the following conditions exist: -A court ruling in favor of treating workers in similar circumstances as non-employees; -A ruling by the IRS (usually a Revenue Ruling) stating that similar workers are not employees subject to employment taxes; -An IRS Technical Advice Memorandum or Private Letter Ruling issued to your company, indicating that the particular worker isn't an employee; -A past IRS payroll audit that didn't find workers in similar positions at your company to be employees; or -A longstanding, widely recognized practice in your industry of treating similar workers as independent contractors. NOTE: The Treasury Inspector General for Tax Administration has recommended that IRS pursue legislative proposals that would mandate withholding of income taxes on payments made to independent contractors and require monthly estimated tax payments. TIGTA made these recommendations in order to curtail estimated tax payment To learn more visit www.testprepprofessionals.com

Managing Tutor No-Shows

Emergency tutor and teacher recruitment in as little as 48 hours (seriously).  Visit testprepprofessionals.com for information Email not displaying correctly? View it in your browser.

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Managing Tutor No Shows...in the moment Step 1:  Call the client in advance of an impending missed appointment whenever possible (Good organizations are unafraid to admit mistakes and eager to provide resolution). Step 2:  Assuming that the no-show is unexpected, remember that the tutor's well being and the client's concerns are not mutually exclusive.  Support your tutor and attempt contact.  At the same time, validate the client's concerns by letting them know you will immediately work to reach a resolution.  A phrase like"this is not typical for David nor for our company, let me do some quick research and get back to you in XX minutes."   This practice will afford time to both check on the tutor and to consider client alternatives. Step 3:  Attempt to reach the original tutor to determine if he is alright.  At this point it would be wise to call back up tutors as well and set the expectation for meeting location, duration and subject matter.  When possible, defer to a Icon Tutor. Step 4:  Work to create a make up meeting with your absolute best tutor (Icon Tutor) but make it clear that this is only because of the unusual circumstance and is unlikely to be a regular option.  Ideally,  this meeting occurs at the same time as the original appointment.  If it does not, work to redirect the client to a make up session with said Icon Tutor.   The bottom line here is that you want to protect your brand and your reputation by turning an obstacle into an opportunity. One has more control when one schedules a known quantity.    Weaker organizations will find anyone they can to fill the original session which often backfires.   Step 5:   Follow up with the client before and after the eventual meeting.  *Note*  this is a good practice to employ for all regular meeting times as well--not just a crisis.  The key to the relationship between a tutoring organization and a client is transparency.   Step 6:  If the client is intransigent, be prepared to find a reasonable middle ground for what we call a make good.  This is often a request for some sort of refund.  Ultimately, the key here is to let the client talk so that one can uncover the true need they are expressing.  For example,  a client may ask for a refund because they do not know or understand their options.  Things like extra time, free-work shops, even work-books can be suggested and are typically more relevant to the root concern of the client. Because word of mouth is ultimately the best advertising, protecting your brand equity cannot be overstated; if a refund is demanded, be prepared to part with the money.  That having been said, if you stand behind your service consistently during good and bad situations, you should be able to help redirect the client to a more relevant and agreeable make good more often than not. *Email to learn more about  Managing No - Shows .    We'll cover " Minimizing and avoiding,"  " Human resource follow-up," and "Tools and tactics to strengthen your culture."

Specializing in high quality short timeline Tutor recruiting--in as little as 48 hours (seriously).  Call 617-285-4036 or email info@testprepprofessionals.com  Email not displaying correctly? View it in your browser.

Cross-selling and its impact on tutoring profitability

Key terms Cross-selling:  an extra product or service offered to an existing client.  Also known as "Add-ons" in tutor parlance. Profit Margin:   Revenue - Expenses / Revenue Consultative selling:  the practice of recommending products or services to meet a client's true goals.   Cross-selling and its impact on profitability Tutoring firms can benefit in a predictable and measurable way by cross-selling products to current clients.  One of the nice things about cross-selling is that it implies an high level of engagement between tutor and client.  Most folks reading this now have probably engaged in add-ons (or cross selling)  just to provide excellent client service without actually understanding the inherent benefit to their business.  As the Test Prep & Tutoring world becomes more commoditized  this client-centric approach allows smaller firms to differentiate from larger concerns.   Said differently, Tutoring is generally customized for a particular purpose to suit a particular need.  The closer we get to understanding and addressing those needs, the more unique and individualized our offerings.  This tends to make cross-selling both credible and consultative. How then does one leverage cross-selling to positively impact the business?    It comes down to discipline and consistency.  While some parents or students will ask directly for help in a subject outside of their primary focus  (  think about how often you have heard "my son needs to prepare for the SAT---oh--and do you tutor Physics as well?), other parents may not be as well informed nor as strategic.     Ask yourself "has every client from the past asked for additional hours or services?"  Most often the answer is no which simply means there is an opportunity for you  to start the dialog.  Now ask yourself "of the clients that have asked for additional hours or services, have the outcomes benefited my top line?"  Most often the answer is a resoundingyes.  Assuming this is true, the simple answer is to offer everyone of your clients something more; something valuable...and something directly relates to the client's need.  This is where discipline and consistency come in:  in order to create the most value from the practice of cross-selling, one should approach every client at some point with the idea of adding on hours, services, or both. But some folks feel uncomfortable suggesting additional products or services because it feels less like teaching and more like sales.  The reality is, however, that parents or tutoring clients themselves often need and want more.  The reasons may vary from wanting a competitive edge on a test, to needing to have a better understanding of an admissions time line,  to needing to improve a GPA.   If one can shift frames from "salesperson" to "consultant," a liberating and impactful change can and often does follow.    Profitability and providing excellent tutoring services are not mutually exclusive. Okay, so assuming you have shifted frames from a sales mentality to a learning consultant, you simply need to surface opportunities to help, or to recognize when someone needs help--and then, well,  help them.  But how do you know what and when to broach the subject?    Although this is a complex question I have two fairly good suggestions: 1)   Start by truly understanding your client's needs by spending a good deal of time on the front end of the relationship.   If someone is signing up for SAT tutoring you can think "great, I'll schedule a great tutor and we'll set up sessions for Tuesday and Saturdays,"  or you can seek to learn a bit more about the student's goals, target schools, high school transcript, and   GPA profile.  Surfacing some additional information generally helps one uncover the true need behind the initial request.  Once these needs are understood, recommendations can be made. 2)    Focus on cross-selling  right now.  This point in the year is typically the high point for all manner of high school standardized tests (ACT, SAT, AP) including subject tests.  Moreover, the timing to have a final impact on one's high school GPA is coincidental as well.    Even if you have not spent a great deal of time on the front end, the college admissions time line is working in your favor. The Business Implications of Cross Selling Cross-selling is profitable, primarily because one does not need to spend additional $ to market to a lead base.  In this regard, the ROI is much higher than the ROI from a new client.  Additionally, the back end processes are less difficult to navigate because a rapport has been built with the client, tutors have been delivering service, the location has been determined etc. Lastly, although the impact to revenue may be small at times, for example when someone adds one or two incremental hours of prep, the impact to profit margin is extremely high.  Why?  Essentially, with cross-selling the primary and sometimes the only expense is labor which means more of the service revenue travels directly to the bottom line. If you haven't begun cross-selling, now is the perfect time.  If you are a veteran of the tutoring field, challenge yourself to surface these opportunities with every client.   You won't be disappointed. To learn more about cross-selling or to learn what additional services are prime opportunities to cross sell contact Kevin Organisciak at 617-285-4036 or email info@testprepprofessionals.com