Why Do You Care?

  • Your most profitable instructors are those who bring in the most money for you.  
  • Note, these are not necessarily the same people as your Most Cost Effective Instructors.  
  • Your Most Cost Effective Instructors are those you pay the least for relative to the amount of revenue they generate.
  • For example, an instructor who generates $100 of Value and Costs you $50 will give you $50 in profits.  However their VTC ratio (Value to Cost ratio) is 2 ($100 / $50).  This means that for every $1 you spend on their salary or wages, you get $2 in revenue.
  • Another instructor who generates $30 but only costs you $5 will only give you $25 in profits, but their VTC ratio is 6 ($30 / $5).  For every $1 you spend on this instructors salary or wages, you get $6 in revenue.

Instructor Report Metric To Look At

  • Profit

What You Can Do

  1. Look at your Instructor Performance Reports
  2. Find the instructors with the highest Profit numbers
  3. There may be some surprises here.  Instructors with classes that do not fill, but whose classes are made up of higher paying clients may be more profitable than others you thought were killing it, but whose classes are filled with only intro clients, or ClassPass clients
  4.  This may seem obvious, but treat these instructors well.  They are your money makers
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