This should start making everyone warm and fuzzy!!!
Q. I recently heard from a shareholder who said our plans were vague and that we had no chance of making money.
A. To my knowledge, this is not a shareholder who is privy to any of our specific plans. We do have models and plans to grow all three of our divisions — Clinics, Products, Training:
Clinics: Clinics cost less than $100k to open, and make about $200-400k revenue on $150-320k in expenses — with only two fully trained practitioners (and a small “non-skilled” support staff). A four practitioner clinic makes $400-750 revenue on $260-540k in expenses. A six practitioner clinic makes $600k to $1.1million revenue on $380-750k in expenses.
Products: Clinic revenue figures described above do not include any retail product sales that occur at Clinic locations. Sale of 40,000 low priced items ($19 to $40 retail price per unit) such as exercise books or CDs or floor mats means an estimated $1 million revenue. These items are an easy sell at Clinic locations and as a result of national marketing in regions where no clinics exist ó especially with a national television spot coming soon.
Training: A full-sized class for the Training Program (a target we have not yet reached) makes approximately $200,000 in the first year. This figure is for tuition alone; it does not include the revenue increases in our other divisions (Clinics and Products) that typically occur. The profit margin on this training revenue is approximately 25%; in other words, expenses are about $150k — and these expenses do not increase at all if tuition prices are raised.
This revenue and profit margin comes from a current tuition of $5,000 per student for the first semester. This amount is underpriced for it’s value, and could easily move up to $10,000, given the right market conditions, word of mouth, and consumer awareness. This could mean as much as $400k revenue for a Training semester 1 (with no increase in expenses).
Keep in mind that a Training semester 1 is composed of two modules lasting 9 contiguous days each, conducted approximately 3 months apart. This means that a semester of training (and revenue) occupies only 18 days of the Training Programís class time.
With enough demand, this set of two 9-day modules could be offered at the same location (or multiple locations) all year round, for tremendous revenue potential. And of course, each training class increases both sales in other divisions and general consumer awareness.
Remember that each training class continues for two additional semesters (with each semester consisting of two distinct 9-day modules). Tuition for each of the second and third semesters is currently half that of the first semester. Attrition has been very low (less than 20%), so in addition to the potential of $200-400k per new class each year, revenue will also include an additional $80k to $160k per 18 additional days of returning training classes.
Please also note that, at the least, we expect to either raise semester 1 tuition or increase semester 2 and 3 tuitions to a price closer to that of semester 1 tuition, as demand grows. Our internal analysis of the content, value, and student satisfaction of the 2nd and 3rd semesters supports this plan. Thus, in any given year...
$200k per new class + $80k per semester 2 class + $80k per semester 3 class
might become
$200k + $180 + $180k or similar.
Keep in mind that the tremendous appeal and value of Clinical Somatics as a professional skill (and Somatic Systems’ proven system of teaching it) has been so powerful that enrollment, while still very modest, has grown 50% each year (that is, with each new training class) — with almost zero dollars in marketing.
Market Data 
Markets 
AI
