This really surprises me because when I was child I attended a few schools in karate, judo, kung fu etc and never came across this type of pricing structure. Also as an adult I have sampled a fair few schools (5-6) before settling on my current jujutsu class and never came across this before. Like I said I always expect the dan grades to be priced differently as they have extra costs but I've never seen it done with kyu grades. Maybe I have just been lucky with the schools I encountered.
Again I am surprised as all the schools in my city that I've looked at seem to have a belt system! My older brother did kickboxing where I grew up and he had earned belts as well. I'm not doubting you Jarrod especially as everyone else seems to be surprised that kickboxing has a belt system on this thread as well. I'm just feeling a little confused though! From peoples responses I am feeling that I should be more concerned about the fact there is a belt system and the pricing is nothing out of the ordinary?
Kickboxing or is it really TaeKwonDo or TangSooDo or some other art, that is issuing the rank, but the premise for the club is to teach competing techniques for Kick boxing?
I have seen three methods for testing fees:
1) they are included in your Monthly fees, i.e. you pay your monthly fees when it is time to test you test and if you pass and your instructor gives you new rank you wear it.
2) Block pricing, i.e. All Color belt one price then a Big Jump for First Black, they may or may not jump more per rank in black.
3) Progressive cost increase based upon rank. Each step is smaller and less of a shock for the cost to the student.
Pros and cons of each
1) Pros: If you raise your Monthly fees you do not have to worry about testing fee increases as well. The parents do not have to worry about extra costs and feel like they are being nickled and dime to bankruptcy.
Cons: People do not always understand that the monthly fees cover testing fees and will go somewhere else to save $5 per month, but pay a lot more for testing.
2) Pro: This is simple as both the instructors and students know the price for a belt it is the same.
Con: If you have to raise the price, people remember the old price for YEARS and will always feel bad, or think they are being scammed. Not everyone but enough. This makes it more difficult to raise costs, assuming your cost for the test have gone up. This leads to many times increased costs in the Black ranks to compensate for the lower ranks being lost leaders.
3) Pro: If you raise it most people are not used to paying the same price for multiple tests of months or years. This allows for the memory of the student/customer to reset and go with the flow.
Con: People question the value of the increased cost and wonder if it just for money. The Variable scale can give the impression of buying rank, as it costs more per rank.
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I cannot tell you which one is best. I think it would depend upon local market conditions and the customer expectations.
Our club uses method two, and has done so for years (decades). Not that it is the best method, but that it is what was done for a small club with a small amount of students. It might be difficult to overcome the "tradition" of it being there that way for so long.