(replay)Art of the Roll-Up: 40 Businesses in 4 Years

And, you know, one major drawback, which is that the majority of operators in this space, their passion and their background and their focus is music education. So they're really focused on the product and the student experience. And they're not really focused or maybe even interested in the operation side of their business.

And so they're just not doing what I call the 10 p.m. task. They're often teaching during the day. The students are there in the afternoon.

Right. You said that's something not to like, but in fact, that was the opportunity. So it means it makes the businesses maybe lesser quality than they could be. But of course... That was a that was in the pro column as you analyze the business.

Yeah, I think in terms of like why why are these not higher quality business as a starting point? You know, that's generally why and the ones that have been most successful generally are kind of husband wife pairs where one party is bringing the, you know, the music or dance education experience and one party is bringing a more of a commercial background to the table.

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Jeff, one other thing to push back on is the long-time relationship, as you put it, between student and teacher. And as we might put it in our clinical way, lifetime value, the lifetime value of a customer, right? Long time. On the other hand, I would imagine in this world, there's an enormous amount of churn.

How many of, you know, for every one student that becomes a 10-year-long relationship... 20 have gone to a lesson or two and churn after a single lesson or six months. I mean, not every kid is committed.

In fact, probably the few are committed and the majority are churn and burn. So when you look at the true median or mean or whatever, it's going to be lower than that 10-year example. Fair?

That's fair, of course. But one of the advantages we have is that many of the students that are not committed have an external factor driving their participation, which is their parent deciding that this is something that they should be doing. So there's some amount of the parent signs their kid up for lessons, kid takes a while to figure out if they like it or not.