Focus on Value rather than Cost

VAT on school fees is here to stay, so we need to swallow that and adapt


 The landscape has changed

The introduction of VAT to independent school fees, together with the hike in employer NI contributions, has changed everything for independent schools and the evidence that this is having a devastating effect on some schools is already evident with around 77 having already closed, or are due to close.  

There is no doubt that this is an existential crisis for the industry and schools are scrambling to adjust in the aftermath, with many falling by the wayside. 

Avoid Fuelling a Self-Fulfilling Prophecy

But senior leaders must be wary of adding fuel to the fire.  Despite this government already gaining a reputation for being masters of the U-turn, on the subject of VAT policy, this lady is not for turning and they will continue with their story that they have 'removed the tax break for independent schools'.  While it may make your stomach curdle, whinging about it on Linkedin is not going to win you any friends, or put any bums on seats.

So, we need to change the rhetoric so that it is the emphasis is on the VALUE of private education, rather than the COST.

Stop being so miserable!

People buy with emotion and justify with logic. This was demonstrated by Martin Lindstrom, who has written extensively about people buying emotions, not things. He based his analysis on what is now termed Neuromarketing.  His studies involved exposing a wide range of marketing and advertising materials to participants, aiming to identify what stimuli connected with the respondents. He discovered that people are drawn by three forces:  routine, a sense of belonging and trust.

So, if all the current and prospective parents, and staff, are hearing is negativity and a woe-is-me rhetoric about the state of independent education, then you're doomed!  People buy from people but they won't buy from people who are not feeling positive about their school. They need to trust in the system, and that those within it are confident and in control.

Remember What Made Independent Schools Different

It is worth going back to the grass roots of independent education to remember what it was that made independent schools stand out from the state sector. The fact is that they were based on the good, old-fashioned principles: academic integrity, discipline, opportunity and support.  Those values are as important today as they ever were and, due to the financial and structural constraints they are under, state schools struggle to meet the same levels of success with those values as the independent sector.

Focussing on Value

Being honest about how are you going to manage your fees in future (schools can't just keep putting fees up exponentially) is important but what is going to turn heads is some positive thought-leadership and a demonstration of how your school is adapting to, and supporting, the needs of today's parents.  What value are your bringing to your students' lives?  How can this be measured to demonstrate how your school has made a difference. 

If you do this, the conversation will change. People will no longer be asking 'Why would I send my child to independent school' but 'Why would I not?'.

Small changes are within our control. 

 

 

 


 

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