Q: We’re not able to locate our Ratios for Success handouts and are trying to determine if our class fill rate is too high, too low, or just right. Are you able to help us with this?
A: Yes, we can help you with this. In your classes, the ideal situation is to have enough enrollments to generate a 40% to 50% operating margin. That means:
Income from your class is 100%
Promotion Costs for your class is 10% to 15% of income.
Production costs for your class are 35% to 40% of your income.
When you subtract the cost of promotion and production from your total income, you should have about 50% of your income left to cover your general and administrative expenses and contribute to your surplus. The same ratios reply to your overall program. We know that some classes will do better than this, and some will not do as well, but the total for your entire program should give you an overall operating margin in the 40 to 50% range.