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How Ballroom Dance Studios Could Increase Earnings: Unleashing More Diversity and Energy in the Process Silas Mueller
Submitted 2014-03-16 02:15:28 By Dr. Daryl Green
Summary: Learn how today’s dance studios can tap the fastest growing minority segment within the country and gain more profitability in the process.
Regardless of the financial crisis, Americans still aspire to dance and imagine themselves, ‘Dancing with the Stars’. Since 2008, the dance studio industry has seen an upward growth movement except in 2009. Tv shows like “Dancing with the Stars” and “So You Think You can Dance” provide a perfect stimulus for this industry.
Given the difficulty of growing and sustaining profitability in a financial crisis, this article provides ways to attract an untapped market in minority communities so that dance studio owners can create a market advantage in their local areas that their competition will have a difficult time duplicating, thus leading to more sustainable success.
According to estimates, there are over 15,000 dance instruction studios in the United States, producing over 1.4 billion dollars. On average, most dance studios have annual sales of $100,000. The very best known dance studios are Arthur Murray International with 190 franchised studios worldwide and Fred Astaire Dance Studios
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In reality, most of the dance studios in this country are relatively the same size, provide similar services, have comparable pricing, and can easily be substituted with other entertainment options. Consequently, identifying differentiating services amongst dance studios is often tough for customers. However, John Gamble and Arthur Thompson, authors of Essentials of Strategic Management, argue that having superior capabilities that cannot be easily duplicated is one way to make sure a sustainable competitive advantage.
With the struggling economy, buyers will continue to be more selective about how they use their disposable income. Consequently, an enterprising dance studio needs to develop a targeted program to solicit minorities in the community as new customers. adly, most dance studios have overlooked marketing to a more diverse clientele. For instance
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In fact, some dance studios target White people from 25 years old to 64 years old. This reality often means dance studios fight over the same potential market. Nevertheless, demographic changes continue to take place in the Knoxville area. For example, the most substantial increases in population from 2000 to 2010 are in the minority communities of Blacks (8%) and Hispanics (192%). In numerous locations, these demographic changes are significant enough to provide a dance studio a competitive advantage in a crowded market. Knoxville isn't the exception. These demographical shifts are taking place across this nation.
Surprisingly, the majority of the dance studios lack diversity and a clear understanding of how to be appealing to a more diverse clientele. In fact, some dance studios generally overlook minority interest due to a lack of knowledge or interest. The conventional wisdom is that most Blacks and Hispanics would not be interested in ballroom dancing.
Emily Norris, co-owner of Dance Tonight Studio in Tennessee, is a extremely acclaimed dance instructor and performer with her husband Jeremy Norris. She acknowledges that it's a tragic mistake not to pursue a diverse clientele: “I think it is so important to reach out to other demographics in our region that are traditionally not involved in ballroom dancing to increase the diversity within our studio.” However, attracting more minorities to ballroom dancing can't occur without thinking strategically. The following suggestions are supplied to achieve a more diverse clientele and acquire greater profitability:
1. Understand the diversity culture. A studio needs to do the necessary homework on reaching out to a customer base. The minority population is no exception.
2. Eliminate any stereotypical assumptions. With the lack of understanding or information, some owners really feel that minorities would not be interested in ballroom dancing.
3. Create an atmosphere of inclusion at the dance studio.
4. Ask current customers for help in reaching out to new customers.
5. Recruit more diverse dance instructors if necessary.
6. Offer marketing material that promotes diversity. Tailor the marketing strategy for greater effectiveness. Each demographic is different.
7. Develop strategic alliances in minority segments of the community.
With less disposable income, customers are more selective about how they invest their dollars. This article demonstrates how dance studios can be more lucrative and competitive by reaching.
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