{"id":15987,"date":"2019-08-08T11:12:12","date_gmt":"2019-08-08T16:12:12","guid":{"rendered":"https:\/\/lern.org\/?p=15987"},"modified":"2021-08-01T15:59:42","modified_gmt":"2021-08-01T20:59:42","slug":"how-to-know-when-to-cancel-a-class","status":"publish","type":"club_article","link":"https:\/\/lern.com\/lernclub\/club_article\/how-to-know-when-to-cancel-a-class\/","title":{"rendered":"How to Know When to Cancel a Class"},"content":{"rendered":"

Here is the dilemma. Your class is not performing as well as you had hoped, and you are probably not going to make money on it, but you do have some people who have signed up. How do you know whether to cancel the class and disappoint the people who signed up, or offer the class and lose money?\u00a0 The answer is not as simple as just deciding that if a class loses money it should be cancelled. Here is the information you need to make a decision:
\nFirst, you should know that \u201cBreak Even\u201d is not the same as \u201cGo No-Go.\u201d
\nWith break-even, you are covering your direct costs (marketing costs, instructor costs, etc.) but not staff or overhead (your salary, for instance).
\nWith Go No-Go, you are covering only your production costs (instructor), not your promotion costs, and of course not overhead.<\/p>\n

How to Calculate your Go\/No-Go point<\/strong>
\nThe Go\/No-Go point is the point at which you run the course, even if you are losing money. Here is the how to decide, on a financial basis, whether to run or cancel a class.
\nCalculate the income from the class and subtract the production costs. This is generally the teacher compensation, but it includes all costs required to actually provide the class. If the figure is positive, the course should be run. If it is a negative number, then cancellation is appropriate.<\/p>\n

Example<\/strong>
\n$500 Course Income
\n-$400 Instructor Pay
\nBalance: $100
\nIn this example, you are losing less money by offering the class. If you cancel the class, you lose $500 (plus whatever you spent on promotion).\u00a0 The class covers the production costs, leaving you with a positive income of $100. If you cancel the class, you are losing that $500. If you offer the course, you are losing only $400 over your sunk costs because you get to keep $100.<\/p>\n

How many registrations do you need<\/strong>
\nThere are three different financial analysis points for an individual course or class:<\/p>\n