Page 34 - ELG1705 May Issue 447

RESOURCES

A model
business

Terry Phillips explains how to nd
the right business model for your

language school

here are tens of thousands fee. All lessons take place in a
of successful language classroom with a teacher physically
schools around the world present. At the end of the period of
Tapplying a tried and tested tuition, the students go home. The
model for meeting customers’ wants saleable product is the classroom
and needs. But the traditional learning.
model is not the only one possible. But there are other ways to
If you own or manage a language operate. I have identified eight
school which is not performing common models that could work
as well as it might be, perhaps and help you produce your desired
you should consider changing the business. Once you have chosen
business model you are using. your set-up, look for examples
Most language schools have what of where it has been successfully
we could call the ‘language school implemented in your market to get
model’. Students are enrolled for a more ideas on getting and keeping
fixed period of time at a standard customers and making a profit.

THE HOTEL
Supermarkets have, from their earliest inception, stopped trying to make money from selling their
THE SUPERMARKET It may surprise you to know that many hotels have

used loss-leaders to get people into the store and 2 rooms at a pro t. These hotels aim to get the
1 then persuade them to do all their shopping in highest possible occupancy every night in order to ensure
one place – without comparing the price of every other that they have a large captive audience to whom they can
individual item with the competitor. Some supermarkets sell goods and other services which are more pro table.
focus on milk, some on bread, but the loss-leader must In the language school version of this model, the joint
be a high-pro le staple food. The language school venture coffee shop, bookshop, bar and restaurant make
modeled on a supermarket would offer courses at a very money, while the language courses pull in the students.
low price to children and/or beginners on the principle The whole thing is probably located in a mall.
that once they are hooked they will stay and consume
more expensive courses from the same supplier.

THE LEISURE CLUB

THE NO-FRILLS AIRLINE A leisure club has a business model which is
All airlines use what is called voyage accounting. It 4 school model. With a language school,
almost the antithesis of the normal language
customers are brought together at a speci c
literally means that each trip is one product. Once time to receive the services of the business. With
3 the plane has taken off, that ‘product’ cannot be sold a leisure club, the services of the business are
any more, so the key concept is to sell every seat, even available whenever the customer chooses to turn
if you have to offer discounts below the cost of goods. up. A language school in this vein has a self-access
A language school of this type would offer discounted centre with staff available to guide and set learning
pricing for booking early or very late (and sandwiches and objectives. It also has levels of membership,
soft drinks for sale in the classroom). including Gold Level with a one-to-one trainer.

34 May 2017

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