Except your population increases remarkably or you secured some form of grants funding externally for your school and you want to give back to the people sort of, decreasing your school fees to meet the demand of your parents or as a response to the unfavourable market crash created by your newest rivals , is not a good idea. But how do I know this? It may be insignificant if what you’re removing is just an unnoticeable one or two thousands, or an infinitesimal percentage decrease that’ll really not cause any pressure, but even at that, you must have figured out some way of taking it back from the same parents or getting it back from some other new income for the school.
QUESTION: Since you reduced your school fees, has your enrollment, or overall financial performance jumped up to justify the decrements? Do you now suddenly have more children and more money in the system?
I often speak with people who confirm to me there hadn’t been any significant improvement in enrollment even after decreasing their fees over and over again. So from research it has not always been the best strategy for population growth. Decreasing your school fees is not a bad idea though, but maybe you shouldn’t expect a magical change in your enrollment status simply because of that. Worse still, if you did it to earn the patronage of the parents or say, as a marketing strategy to woo new ones, chances are, you’re now opening your gates for parents you would not be able to afford an obvious upcoming increment.
The long and short of it is: in business, you don’t decrease your main source of revenue as a passionate response to the yearnings of your customers or as a reactive response to the competition forced on you by your close rivals….without also figuring out how to take it back from the same customers, get it back from some other source or at the least, also reducing your major expenses and overheads.
SO DAVID, WHAT DO I DO? HOW DO I RESPOND. THESE NEW SCHOOLS SPRINGING UP AROUND ME ARE CRASHING THE MARKET. MY PARENTS ARE ITCHING TO CHECK ELSEWHERE.
Employ other options, let decrements, if need be come last. Have you grasped the principle of Perception VS Reality. We can teach you that. How about the principle of VALUE? Do you know the same parents can leave your school and pay double elsewhere? Should I tell you that money is not your parents problem, even if they claim it is? Whatever they choose to pay you is how much they think you deserve. What if we can make them think you deserve more. Because you really do. Decreasing your school fees should be a last option.
What’s your training budget for this year, why not enroll for a 4, 5, or 6 months course on SOF ACADEMY. Only twice in a month. Your school’s transformation is guaranteed. There’s a whole lot of school business knowledge waiting to be tapped. But today…please don’t decrease your fees cheaply, except for positions i’ve stated above.