Category 4: Program Pricing and Logistics
Remember; You Get What THEY Pay For.
Large training and membership-based management associations are saddled with large buckets of overhead costs, which drains resources received from seminar fees away from development investments and toward administrative salaries and overhead. As a result, and in order to meet their bonus "bogies," they focus on keeping expense low. This means that you get an instructor that may not be leading edge, just inexpensive. Many training organizations often will not pay for course leader travel expenses, opting for using an instructor who is local. This often results in a course leader who may not offer best-practices information and be a recognized leader in the field or discipline being presented. This leaders are chosen just because they are "local," and the large training company does not have to pay travel expenses. You wind up paying for inferior training. Where is the value?
The Open Enrollment "Curse"
Almost every training organization that offers "Open-Enrollment" seminars advertise through the use of direct mail marketing. As you may know, the average response rate for sales coming from direct mail marketing average about .1%, Yes, that One-Tenth of One Percent!!
That means that for every 1,000 pieces of direct mail marketing sent, the large seminar company will generate ONE enrollment. Do the math! Since Bulk postage is about $.12, and printing and mailing costs average $.50 per piece, that large seminar company spent $620 in just one advertising mailing to get ONE person to enroll in the program. Who pays for that? - You do! Often, companies who offer open-enrollment programs use on-site sales as a way to subsidize the open-enrollment seminar business.
Moreover, since the materials used in the open-enrollment programs ARE THE SAME AS YOU GET IN AN ON-SITE PROGRAM, customization of the existing materials to meet your specific needs is generally expensive, it not impossible, since the developer of those open-enrollment course materials is long gone. The seminar company is left with an "orphaned" program, which is not at the mercy of the low-cost instructor the large seminar company just "assigned" to you.
There has to be a better way! An there is. When looking for an on-site program, stay away from the Open Enrollment Curse!
High Quality "On-Site" Programs at an Affordable Price!
In today's technological environment High Quality Training Does Not Have to Be Expensive. Many large training organizations, professional associations, and member-based management associations see your training dollar as their avenue to profitability. Since they are multifaceted, offering everything from monthly trade journals to membership credentials to glitzy annual meetings, they are required to establish a large, structured organization that requires lots of overhead. Smaller, training and consulting firms do not have the huge overhead nut to cover, and can pass the savings on to you, but many don't. They also see your training dollar as the way to pay for that Beemer!Maximize the Return on Your Training Investment. In order to ensure the best return on your training investment, look for firms that specializes in providing the highest quality professional development programs on an exclusively "On-site" basis. By operating in this way, we have the ability to offer quality programs at a most affordable rate. They are not hampered by the Open-Enrollment Curse, the program leader is in all probability the developer of the materials, and has a vested interest in your satisfaction, since his or her paycheck comes from the in-site provider, not simply a "consulting fee."
Also, by keeping overhead low, the small training and consulting firm can offer programs at a fraction of the cost of the high-cost, high volume "management" organizations that inundate you with expensive, glossy marketing brochures. Since they are small, they are flexible. They have the ability to rapidly meet your unique educational requirements, can offer training in a wide range of venues, time frames and environments.
Scheduling your on-site training program should be as simple as One, Two, Three.
Finally, the structure of "booking" the on-site program should be simple. Large seminar companies and membership based professional and management associations have a structured process that involves sales people, logistical people, billing people, training people and so on, all of which add complexity AND COST!!
Look for small training and consulting groups. Your phone call will probably be answered by an individual who either developed the materials, leads the programs, or both. Small companies do not have large administrative staffs, generally do not have receptionists, admin aides, or other folks. This means that their occupancy costs are low, since they do not need a lot of floor space to house staffs they do not have!
One, look for training firms that provide you with a "Fixed Price" for all of their programs. No Problem, No Hassle! There is no question of "What will be the total cost of the program?"; since instructor fees, travel and living expenses are included in the fixed fee seminar price. Look for companies who's fees include all instructor fees, travel and living expenses, and all program materials. All you as the client should be asked to provide is the training facility, any A/V requirements, and any desired creature comforts. This makes the economic side of the decision easy.
The seminar company's pricing structure should be clearly identified on their web site. Look for companies who charge an average of $2,000 - $3,500 per day including all instructor travel and living expenses, instructor fees, Training Assessment Meeting costs, material customization, and all participant course materials.
TWO Be sure that the training company never forgets that you are the client. All reasonable modifications to existing program materials essential to fit your needs should be included at no additional cost to you. Your organization deserves the skills you require. Ensure that program modifications a "part of the service" provided by the seminar company.
The company's web site should offer "Seminar Fact Sheets" that provide you with all of the information you need relating to:
1. A General Overview of the Seminar
2. A clear presentation of the Learning Objectives the program is designed to meet;
3. A discussion of the individuals for whom the program was designed;
5. A course agenda showing the various modules of the program, along with clear discussions of the specific covered in each;
6. The total cost of the program on a Fixed Fee basis; and
7. Any Continuing Education Credits to be earned, and the sponsoring organization.
THREE (and this is the best part!) You are the client. If you wish to invite participants from neighboring organizations to join you in the program to help defray your cost, that is your decision. The training company should place no restrictions on who you can invite, subject to the maximum class size as indicated on each Seminar Fact Sheet.
1. Avoid Paying for Overhead Expenses
Remember; You Get What THEY Pay For.
Avoid large organizations saddled with large buckets of overhead costs that drains resources. Look out for "Hidden Costs" such as paying for Training Assessment Meetings, instructor travel expenses, and participant materials and shipping. Be aware of seminar companies with Regional Offices, Sales Staffs, Owned Training Facilities, Large corporate Headquarters, membership services and so on. Don't pay for their expenses, you have enough of your own. Be sure that every dollar of your training dollar is going back into future training materials.
When evaluating a training company, consider the following:
2. The Open Enrollment "Curse"
Don't Pay for Their Mailing Expenses
Large training companies bury their open-enrollment course overhead in their On-site Training group. They rationalize that the open-enrollment programs pay for new course development, therefore Open-Enrollment overhead should be allocated to On-Site. Don't pay for it. Look for companies that specialize on On-Site programs. Let someone else pay for the postage.
When evaluating a training company, consider the following:
3. High Quality "On-Site" Programs at an Affordable Price
High Quality Training Does Not Have to Be Expensive.
Many large training organizations, professional associations, and member-based management associations see your training dollar as their avenue to profitability. Since they are multifaceted, offering everything from monthly trade journals to membership credentials to glitzy annual meetings, they are required to establish a large, structured organization that requires lots of overhead. Smaller, training and consulting firms do not have the huge overhead nut to cover, and can pass the savings on to you, but many don't. They also see your training dollar as the way to pay for that Beemer! Look for On-Site providers who can provide you a program for 25 participants for what that large seminar company will charge you for 3, BEFORE PAYING YOUR EMPLOYEES TRAVEL EXPENSES!
Some large seminar companies will give you a price averaging $5,000 to $6,000 per day. What they may not tell you is that all instructor travel expenses, Training Assessment Meetings, any customization are billed in addition to the base fee. These additional fees can make the total bill for a three day program upwards of $25,000!
When evaluating a training company, consider the following:
4. Scheduling your on-site training program should be as simple as One, Two, Three.
Giving a Training Provider Your Money Should Not be Difficult
Your The process of "booking" your On-Site program should be simple. Large seminar companies and membership based professional and management associations have a structured process that involves sales people, logistical people, billing people, training people and so on, all of which add complexity AND COST!!
Look for small training and consulting groups. Your phone call will probably be answered by an individual who either developed the materials, leads the programs, or both. Small companies do not have large administrative staffs, generally do not have receptionists, admin aides, or other folks. This means that their occupancy costs are low, since they do not need a lot of floor space to house staffs they do not have!
Look for the One, Two, Three Booking Process
ONE. We've already discussed the Fixed-Fee aspect of the On-Site program. If the seminar provider tells you the total cost up front, No Problems, No Hassles.
TWO Be sure that the training company never forgets that you are the client. All reasonable modifications to existing program materials essential to fit your needs should be included at no additional cost to you. Your organization deserves the skills you require. Ensure that program modifications a "part of the service" provided by the seminar company. Any subsequent phone conversations should be included in the Fixed-Fee price, including any Training Assessment Meetings, status meetings, logistical conversations, and the rest.
THREE (and this is the best part!) You are the client. If you wish to invite participants from neighboring organizations to join you in the program to help defray your cost, that is your decision. The training company should place no restrictions on who you can invite, subject to the maximum class size as indicated on each Seminar Fact Sheet. Also, be sure that the training provider provides you with a fool-proof set of instructions that fully explains such key elements as:
1. Optimum room size, environments and how to ensure that the participants are able to concentrate on the course content, not the deficiencies of the training room;
2. Best-Practices for placing and spacing of tables, and the necessary tools to be available so to maximize the benefits of the total learning experience;
3. The essential audio-visual elements, the most effective way to place them in the room, LCD's vs. Overheads, DVD players and Monitors, etc.;
4. Recommended refreshments, lunches that do not cause the mid-day "slump", most effective break refreshments, timing of morning and afternoon breaks; and
5. Optimum start and stop times, evening group activities, and other activities that help to solidify the "Team" concept of the adult learning experience.
The company's web site should offer "Seminar Fact Sheets" that provide you with all of the information you need relating to:
1. A General Overview of the Seminar
2. A clear presentation of the Learning Objectives the program is designed to meet;
3. A discussion of the individuals for whom the program was designed;
5. A course agenda showing the various modules of the program, along with clear discussions of the specific covered in each;
6. The total cost of the program on a Fixed Fee basis; and
7. Any Continuing Education Credits to be earned, and the sponsoring organization.
When evaluating a training company, consider the following:
| Final Rating | Category Rating |
|---|---|
25 |
5 |
20 - 24 |
4 |
15 - 19 |
3 |
10 - 14 |
2 |
5 - 9 |
1 |
5. Its Your Party - Invite Who You Want
When evaluating a training company, consider the following:
| Final Rating | Category Rating |
|---|---|
25 |
5 |
20 - 24 |
4 |
15 - 19 |
3 |
10 - 14 |
2 |
5 - 9 |
1 |