HOW TO INCREASE SCHOOL FEES CONSIDERABLY WITHOUT LOOSING STUDENTS*
– By David Adeniji –
Okay, so you saw the topic and thought, Mr David has come again. How on earth is that possible. I believe by now, you’ve learnt on this platform that unbelievable things are possible.
What actually differentiates most schools is their school fees. As a matter of fact school fees is what makes your school a private school, different from other government schools or charity organizations.
Now, I know a school in Lagos. It is called Liberty School. It operates in about 2 to 3 locations in Lagos with a total of close to over 500 pupils. It’s absolutely free. Uniforms, textbooks, tuition and all. Pupils are even fed with a free meal everyday. The school is operated by a church and financed by partners raised from that church.
One thing I want to point out is that even when a school is free to the parents, it costs some other people money to keep it running. Teachers must be paid, publishers must get their money. Rent must be paid, there must be teaching aid and so on. It amazes me when school owners are reluctant at charging exactly what their services worth for fear of loosing them. The truth is keeping your parents answers not only to school fees, it answers to value.
It’s too early to reveal this in the lecture, but i will reveal it all the same. When I write, I do so as though I’m speaking. I don’t hold back any solution that pops my heart to share.
What your patents pay you not just a function of the education you render. It’s rather a function of how much they value you. You may teach better and produce sounder and more grounded children, but another school that does less than half of what you do but commands more value will parade the exact infrastructure you parade and receive much more than you receive
School fees answer to value, not just service. However, though service contributes to that value, it’s not the only component of that value.
*SO MR DAVID, WHAT IS THAT VALUE – PERCEPTION VS REALITY*
*AS EVERYONE JOINS THE LECTURE, LET ME ANNOUNCE THIS GOOD NEWS. FINALLY, OUR MUCH AWAITED OUTDOOR SESSION PLANS HAVE BEEN FINALIZED. HERE ARE THE DETAILS*
*HURRAY! FINALLY, WE’D SEE EVERYONE ON THE PLATFORM. AND MEET ONE ON ONE WITH THE COORDINATOR – MR DAVID ADENIJI (Master School Strategist, Business Coach)*
If your worth is this much but people don’t perceive you to be so, they will value you according to their perception and not according to reality. Don’t think I’m just speaking English, Google will not teach you what I’m about to show you. I learnt them in a hard way.
About 2 decades ago, before she retired, my mother had seen her school drop from 200 to just 30 due to sharp competition from upcoming schools. She had even crashed her fees several times over, but it didn’t help. When i took it over (before starting my own), people in the environment suddenly saw a constant influx again. The strategies had paid off. It wasn’t easy. But I tell you *neccesity is the mother of invention*
People will simply pay you how much they percieve you worth. If you like increase the fees, they may not leave, but they will pay you what they have.
So here’s how we will increase your fees seamlessly: we will do some projects (cheap projects), that will add value to your school both for the perception of existing parents and for the perception of parents that are not yours yet. Then when these 2 categories of parents) meet in the vicinity ( trust me, they meet), their discussions about you switches a bit to a new gear. Then when your own parents get back to school (still paying the current fees) they’ll thank you and behave differently to you. They’d be nicer because it’s obvious they’re seeing a greater value than they think they’ve paid for.
Now, we will still not increase your fees immediately, they’d enjoy it for a while. Then just when they’re already expecting it, the increase will come.
Did you get that last point?
*Just when they are already expecting it, the increase will come – and no one will leave, because they know it’s worth it.*
To explain this ‘value’ point very clearly (and I want you to pay attention to this) , I use myself as an example. At the beginning of the forum, i only introduced myself as an Edupreneur and school owner. Not many people on this platform know me one-on-one. I get dozens of calls to say hello or simply appreciate the good work. The platform then grew in just about a month from just 1 to 5 due to referrals from members. And practically everyone on all the forums 1 – 5 with close to a total of say 1,000 members and about 500 active participants; have been blessed one way or the other by our classes – All at no cost. Now, that’s ridiculous. Some have told me to stop giving for free. But I understand the concept of value. To an extent, everyone values what we’ve done so far. Now, the *outdoor session*, (due to some costs we will incure), is not coming totally free and yet, people have already started registering. Because they’re in no doubt about what will be offered. The perception now is:
*If we could get this much for free, so much more will we get now that a token will be paid*
(By the way, its 29k/participant (25k for early birds – first 50 registrants)
That’s it! Give Value First, before you demand premium
For parents to agree to pay you more, there must be a seriously visible more in the value they perceive of the school and of you as an individual. See, school business is serious business, and if you don’t take it serious, you may soon be put out of business by aggressive offtakers. You must keep changing your skills, what was OK, 5 years ago may not be today. Everything is changing
The real fear should be of not adding value to the school and to yourself. You cannot actually charge more than your own personal value. So check inside, it’s about your own self worth, not the school per say.
What you may be failing to realize is that every school has its own set of customers. Especially in a place like Lagos where there is huge population. All the privately owned schools put together can not even enroll all the children roaming the streets. So what is worth doing at all is worth doing well
*HOW TO SET YOUR FEES*
Let me lend professional advice to everyone looking to either start a school soon or at the stage of opening one. Or maybe you’re relocating to your permanent site different from your present location. Or you’re opening a new annex somewhere else. The most important decision you will have to make is how much you want to charge as school fees. If you fail to get it right. It will take you years to correct.
*SCHOOL FEE IS VERY RESISTANT TO CHANGE*
Your fee is an indirect way of determining the class of parents you want to deal with. And don’t deceive yourself, it also depends on your own class, financial exposure and the motive for starting the school. Someone who started a school as a freedom from unemployment is quite different from one who has excelled in his career and sought for an investment in the sector.
I know of people whose real intention for starting a school is so they can escape paying school fees over their own biological children but at the same time procure for them the quality education of their dreams. Trust me, people start schools for various reasons. From the outside all may seem nice and everyone feigns the ‘good education, Godly children’ cliche, but when you probe deeper as my job allows me, you know more of the real reasons.
*PAUSE FOR A MOMENT: WHY? – I MEAN, SERIOUSLY – WHY DID YOU START A SCHOOL. WHAT’S YOUR REAL MOTIVE?*
You’re all by yourself now. Please answer that question sincerely. Write it down somewhere and keep it.
You can’t just jump the gun. As you grow, so should your school fees grow
When you start your school:
1. decide for yourself the caliber of parents you want.
2. Find out what these caliber of people are interested in,
3. find out what they may already be getting where they are presently,
4. invest to match or surpass that experience.
5. Find out their economic stands,
6. the range of income they earn and the liabilities common to them e.g exortic cars, houses, businesses, etc.
7. Identify your worthy competitors in the vicinity.
8. Investigate into what the Unique Selling Proposition (USP) of these competitors are
“`(By the way, what is USP?)“`
9. And set your own Unique Selling Proposition distinct from theirs
10. Then set your price around the borders of what these competitors charge.
11. Set yours a bit higher if you’re audacious, set it a bit lower if you want to play safe
“`(When should you be audacious and when should you play safe?)“`
*I will not explain any of these powerful points further. Time will not permit me. They are for the MASTERCLASS. We’ll talk about it at the OUTDOOR SESSION coming up 21st February at Smart X Business Hub, 16, Mobolaji Bank Anthony Way, Behind Keystone Bank, Maryland, Lagos. If you miss it, you have missed a lot.*
*WHEN NOT TO INCREASE SCHOOL FEES*
If you’re looking to increase school fees so that your finances can change, please you’re getting it all wrong. Very wrong. John C. Maxwell once said this:
“`Most people would rather change their circumstances to improve their lives when instead they need to change themselves to improve their circumstances“`
An interpretation of this is that you should not look to changing your school fees in other to change your school’s financial strength, rather increase your school’s and your personal value and parents will advise you to increase fees. In other words, don’t increase fees because you *need money*.
Don’t increase school fees because your competitor has just increased school fees. That may be disastrous. Whereas he may not loose any parent, you may loose yours, because you’re competing blindly. When I started my school, there was a school nearby that had lived for 15 years. He was my most worthy competitor and he’s much older than me.
I really love him, but he made a business error. I set my fees equal to his, and I got intake, sufficient to do business. Interestingly (and actually satisfactory to me), no student crossed from him to me or let’s just say one or two. So he felt, if that new school could match my fees, then maybe I’ve been cheating myself all along. He increased his fees considerably without doing one particular thing – which I’m going to share later in this lecture.
Unfortunately, he lost over 70% of his population. And again, none of them crossed to me.
Incidentally, those 11 points I stated earlier that you need to do before setting your school fees at all in the first place are practically the same things you need to do each time you want to increase your school fees. The slight differences in it are the points I’m going to be discussing in the lecture. Mince no words and take no chances. For many school owners, ‘the fear of school fees increase is the beginning of wisdom’. Rather than increase, many have instead crashed their fees to mitigate the pressure of the competition on them. And those who cannot outrightly decrease fees have resorted to outrageous discounts. Both approaches are to put it mildly, ‘bad for business’ it makes you at best ‘*cope*’ rather than ‘*soar*’.
*THE RIGHT REASONS FOR INCREASING SCHOOL FEES*
The question you’re probably asking right now is that.
*OK Mr David, you’re saying we should not increase because we need more revenue, looking at the recent downturn of the economy and the rising cost of doing business. Even staffs are demanding salary raises everyday, so what do we do?*
I share your concerns, we’re in it together. but sincerely, I don’t like it when people blame the economy for everything. Why should we keep blaming what we have little grip over rather than create the future we desire. You see we’re in it together. But remember. Your parents are also feeling this economic heat. The least you should do is make them justify your increment as deserving and not as a punishment. When they feel disgruntled, for whatever reasons, even for the right reasons, That’s why they look for alternatives and leave you because you upped your fees. But when you play it smarter and they see it for themselves that you really deserved that increase, nobody, I tell you none of them will leave.
*WHAT TO DO BEFORE YOU INCREASE SCHOOL FEES*
*WE’D DRAW THE CURTAIN HERE TONIGHT. HOPE YOU LEART A THING OR TWO. LET’S CONTINUE IN PART 2
🎈DETAILS OF THE SOF OUTDOOR SESSION
✅Date: Wed 21st Feb, 2018 | 11am
✅Venue: SmartX Business Hub, 16, Mobolaji Bank Anthony Way, Behind Keystone Bank, Maryland, Lagos
✅Host: David Adeniji (Master School-Strategist, Business Coach)
✅Entry: N29,000 (Early Bird – N25,000 – First 50 Registrants)
✅Covers: Lunch, Full Course Materials, One-On-One Consultation with David Adeniji
✅Payment: Access Bank, 0033762968, David Adeniji
✅Contact: 08096719400, 08069462143
🎈There’s always a better way to doing business, Join the class of Masters. Your school needs fresh solutions.
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