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People take martial arts lessons for a variety of reasons, and not all of these students present the image or have the skills that are considered ideal among martial arts instructors.
Some students may not be as fit, or as graceful as you might like. You are, however, running a school and not a martial arts training camp for ex-Marines.
The key is that the best way for them to get into shape and gain that warrior attitude is for them to be in your school. That’s hard to do if they don’t feel they are respected.
Regardless of why they’re in your class, and what qualities you think make up an ideal martial arts student, these are paying students that deserve your respect. You’ll find that your retention will fare much better if you treat all students equally and with respect.