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Those in the private education industry often complain about the declining student population. However, looking at the numbers tells a different story. According to the 2023 Private Education Expenditures Survey by Statistics Korea, the total market size reached 27.1 trillion KRW, actually growing by 4.5% compared to the previous year. Notably, the average monthly expenditure per student rose to 553,000 KRW. Parents are no longer looking for a place that simply keeps their children for a long time; they are willing to spend more on places that guarantee clear results.
A structure where the director personally teaches in the classroom on an hourly basis has a clear revenue ceiling. To break this cycle of physical exhaustion and stagnant income, you must completely redesign your product. Stop charging based on an hour of instruction; instead, put a price tag on the outcome.
There is one thing large franchises cannot do: understand the specific local school landscape. Simply posting class recruitment notices on your blog is an act of undermining your own authority. You must use information asymmetry to position yourself as a local education expert.
Acting as an information provider eliminates price resistance during initial consultations. It is the fastest way to drive your closing rate above 80% without cliché persuasion.
If your monthly revenue has stalled around 10 million KRW, it is highly likely because the director is handling everything from administration to consultations. This is not a business; it’s a cottage industry. You need Standard Operating Procedures (SOPs) that allow the academy to run with consistent quality regardless of who is working.
When selling high-priced products, boasting about the director's brilliant career is the worst strategy. Parents are not interested in your career. Instead, focus on the pain they are experiencing. The purpose of a consultation is not to persuade, but to make parents realize the risks of leaving the current problem unaddressed.
Three steps for a consultation are sufficient. First, ask deep questions about the conflicts they face regarding their child's education to let their concerns pour out. Next, present a prescription by showing the "Top 5 Student" portfolios you prepared. Finally, help them decide by emphasizing principles such as "first-come, first-served limit of 4 students per class."
Academies that sell time will hear requests for discounts, but academies that sell results are excluded from price comparisons. Entrepreneurs who build systems earn more money outside the classroom. Start investing your time in creating this structure today.