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Who are my best value/Most Cost Effective Instructors?
Who are my best value/Most Cost Effective Instructors?
Christina Pischel avatar
Written by Christina Pischel
Updated over a week ago

Why is this important?

  • Your Most Cost Effective Instructors are those who drive the most revenue for you, but cost the least. This your bench of talent. These are the people you want to grow and develop and give new time slots to (assuming other factors are solid, e.g. retention rates, etc.)

  • Note that this is not necessarily the same as your Most Profitable Instructors. An instructor who generates $100 of value and costs you $50 can give you $50 in profits. However their Value to Cost (VTC) ratio is 2.

  • Another instructor who generates $30 but only costs you $5 will only give you $25 in profits, but their Value to Cost (VTC) ratio is 6. That means that for every dollar you spend on the instructor, you get $6 in value/revenue!

Instructor Report Metrics To Look At

  • Instructors who have the highest Value to Cost (VTC)

  • The VTC is calculated by taking the $ value delivered and dividing it by the Pay Per Month

  • If you have a VTC of 2, it means that for every $1 spent paying the instructor, she generated $2 in value (revenue)

What To Do

  1. Look at your instructor reports

  2. Find the instructors with the highest VTC numbers

  3. Treat these instructors well! This is your bench. If one of your more seasoned instructors leave these are the folks you will use to replace them

  4. Also, these instructors should be high on your list for professional development opportunities, new time slots, and opportunities to prove themselves

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