Pricing Your Microschool: For Profit vs. Non-Profit
For Profit vs. Non Profit
Tuition-Based Microschool
If your primary goal is to make a profit as a business owner, this option is a no-brainer. The main benefit of a tuition-based pricing model is the ability to generate income from your microschool. These funds can help you pay for overhead expenses, supplies, digital software, licensing fees, and other costly needs for your business. Tuition-based pricing can also convey a sense of value for your business and the services you offer. In other words, it’s a “get what you pay for” approach. You want to demonstrate to potential customers that you provide a valuable, high-quality service. Some parents are more likely to pay for educational services when they believe that it’s worth every penny.
While running a tuition-based microschool can offer many economic benefits, these are mainly perks for you as the business owner. As you think about your pricing model, keep in mind that Phillips Academy is designed to meet the needs of both the educator and the parents/children they serve. So, for instance, if you intend to work with families in a low-income community, you should keep affordability in mind. Some parents may prefer to explore free or low-cost education options in order to maintain a reasonable household budget. However, this can vary among community families, and it ultimately depends on the financial and educational goals of each parent. A little bit of research and community outreach can help you gain more insight as you set your tuition prices in stone.
Tuition-Free/Non-Profit Microschool
One of the obvious setbacks of offering a tuition-free microschool program is the fact that you won’t generate revenue directly from enrolled families. This means that you’ll be responsible for funding your program expenses in order to stay afloat. The good news is that there are quite a few ways to successfully fund your non-profit microschool. Non profit funding sources, such as federal grants, are a popular and effective option for this type of business model. You can reach out to government agencies, companies, charitable organizations, etc. to check your funding eligibility and options. Another option is to use other sources of income to cover your business expenses. This might include wages from a part-time job or donations from friends and family. You can also organize community fundraisers such as bake sales or walk-a-thons.
Although funding your tuition-free microschool could require more resources than a tuition-based program, keep in mind that this option can be financially beneficial for parents. As public schools account for 76% of all US schools, free education options are more common and affordable for many families. Providing this free service for the community is one of the many benefits you can offer as a Phillips Academy Coach!
Choosing Your Pricing Model
Whether you choose a tuition-based or tuition-free pricing model for your microschool, the ultimate goal is to provide a service that meets both your needs and those of the community. As a Phillips Academy Coach, you’ll need to spend some time thinking about what those needs are.
- What is your current financial situation and how will that affect your ability to run a successful business?
- What are your personal beliefs about the economic value of education?
- What type of resources do you have access to in your community?
- What is the average income level in your community and how can you adjust
your pricing model to meet their needs?
As you explore these questions, remember that there are no definitive answers in terms of choosing a pricing model for your microschool. However, do feel free to check in with us if you need more guidance and resources.