Page 34 - ELG1810 Oct Issue 461

INTERVIEW .

Dixey’s

direct

message

ELT needs commercial leaders to take back control of the supply
of its clients, Mergers and Acquisitions guru James Dixey tells Melanie Butler

ames Dixey is clear about what the recommend students! product; and the care of the students. But
British ELT industry needs: ‘big, brave, And we learned early on how to do Direct many have made the commercial mistake of
commercial leadership!’ When James Marketing. We never let agents dictate terms giving away control over the supply of their
Jtalks business, I listen. Over the last 30 to us.’ students to their agents.’
years, I have learned that what he says is often In 2003, Dixey sold Pilgrims and ‘went ‘Agents are now effectively ‘in control’ of
controversial and nearly always right. fishing for ten years’. many ELT schools; and are able to ask for
He contacted me to talk about the latest I knew he would be back. Sure enough, in more and more commission; up to 50 per cent
sale he has brokered. Studio Cambridge, one 2015 he called me to tell me he was bored and in recent cases.’
of the largest private language school operators was going into ‘Mergers and Acquisitions’ for James Dixey is horrified.
in the country, has been bought by Hong Kong language schools. ‘You cannot run a successful business if you
investors. When he contacted me about the Studio give away 50 per cent of your turnover before
It’s the ninth sale he’s brokered since he sale, I decided to pick his ever commercial you start.’
came back into ELT five years ago. brain. If you want to be commercially successful
The eighth was also in Cambridge. The New What are the biggest change he has seen he argues, you must control both your supply
School, now part of the St Giles group, had a since he’s been back? of customers; and the costs of getting them,
special place in his heart. ‘Customer Acquisition Costs’ as they are
It was the school where, with a year as a Many language schools known
VSO volunteer under his belt, he taught in his They include not just your agents’
university holidays. The school where, over 40 have made the commercial commissions, but all the money you spend on
years ago, he met up with fellow teacher Mario mistake of giving away acquiring and servicing your agents: brochures,
Rinvolucri, the father figure of humanistic control over the supply sales trips, sales staff…
methodology. Any school that spends more than 30 per
Together, they dreamt up the kind of ELT of their students cent of its turnover acquiring its students,
operation which their Cambridge students to their agents. warns James, is ‘looking at trouble.’
told them they wanted: a school in a location He has a simple message for the UK
with fewer foreign students, friendlier host He reeled them off. First the new players: industry: get together now; and invest in on-
families, and more enthusiastic and innovative ‘China. The biggest market the UK ELT line promotion and direct marketing before it
teachers. industry has ever seen is just beginning to is too late…
The combination of James’ commercial emerge and there are lots of other new markets ‘It is effective and it costs less than you
acumen and Mario’s pedagogic vision resulted coming on stream.’ think.’ And it puts you in a much better
in the creation of Pilgrims, one of the most As for the product: ‘There’s a massive position, if you want to sell.
successful, and ELT brands. Their recipe was growth in demand for pathways and for Young According to Dixey, who has a database
simple: Learner courses. But demand for traditional of buyers looking to buy English Language
‘We had a brilliant product tailored General English for adults is falling.’ Schools: ‘investors like language schools
precisely to the needs of our customers and The UK EFL market is in a classic because of the positive cash flows…
we employed the very best teachers that our ‘Consolidation Phase’, says Dixey. As But the price you can expect depends
money could buy.’ consolidation occurs, competition intensifies on the profit margins you make.’
And commercially? and strong commercial leadership is vital. ‘What we need in this industry,’ adds
‘We distributed our programmes though ‘Many ELT schools are still run by superb the man who built the brand “is visionary
running courses and workshops for teachers and committed educationalists’ he notes’ commercial leadership. And skilled
all over the world. We knew that teachers ‘which is excellent for the quality of the direct marketing.”
34 October 2018