Victim of the Economy?

Posted on June 18th, 2008 by mmj

Yesterday, I mentioned that my wife’s hours were cut back due to a lack of students at the tutorial center she works at.  I have been wondering about the drop in students.  What could be causing this?  Why is it more than the normal summer drop offs?

There are a couple of things I could think of.  One, the rates are quite high and two, our economy stinks.  As to the rates, they have always been a bit steep.  I compare it to what teachers can charge with offering private tutoring at home or the library.  What you do get at one of the learning centers is a structured environment which is a bonus over individual teachers.  Plus, these places can offer standardised practice testing that is comparable to what states offer.

It is the second point that is the underlying cause of dropof.  Parents who are strapped for cash will discontinue extra educational costs over letting go of gas and food costs.  I don’t blame most families.  You have to eat and unless you work at home full time, the rising gas costs can really eat into already stretched budgets.

I think learning centers will have to reduce their rates in order to attract business or face extinction.  This maybe the only way for them to survive.  Lets hope that my wife’s business sees the light.

Filed under: Finance and Investing

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3 Responses to “Victim of the Economy?”

  1. Hanks Weekly Hangouts #35 (June 22, 2008) | My Investing Blog, on June 22nd, 2008 at 3:18 am Said:

    [...] Are teachers Victim of the Economy? It’s interesting to see how things are changing - good luck [...]

  2. dawn @ iowahippiechick, on July 27th, 2008 at 8:15 pm Said:

    I’ve never understood the business model of “overpricing” … except maybe in the extremely high end territory.
    The example that comes to my mind - is going to the movie theater.
    Who can afford that?
    Especially when you can rent them quite reasonably … or eventually even see them online for free.
    Gosh, Craig & I would go regularly, if it were more reasonably priced.
    The way it is now … it’s maybe a four times a year thing!
    Anyway - I hope your wife’s employer see’s the light and adjusts it’s business model.
    And I will keep your little one in my prayers.
    God Bless

  3. mmj, on July 29th, 2008 at 2:53 pm Said:

    Thanks for the prayers Dawn.

    I totally am with you on the movie theater prices. It is actually cheaper to buy a DVD than go to the theater.

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