How to price online education compared with traditional training institutions?

Yingsheng observation answers for you:

To discuss the pricing of online education, we must have a deep understanding of the cost composition of online education. The cost composition of traditional training institutions (New Oriental, Learning and Thinking, etc.). ) Yes, the venue rent is about 15%, the marketing promotion is about 15-20%, the sales cost is about 15%, and the teachers' salary is about 30-50%. Online education does not have to pay high venue fees, and the cost of teachers is also very low. According to the current cost of hiring foreign teachers on online education websites such as 9 1 foreign teachers and VIPABC, overseas foreign teachers can be hired at the price of 10-20 USD/hour. By taking advantage of the Internet, teachers' resources around the world can be used for online education at low cost. The average salary cost of online education teachers is 70% of that of teachers in traditional institutions.

Although the cost of teachers and venues is low, the initial fixed cost of establishing online education is still high. Online education requires high content quality and product interaction, and the pre-research and development costs and facilities such as servers are definitely high. Lao Pi said that a good-looking online education website needs at least 200,000-500,000 yuan (if you develop your own educational software, it will be higher). However, due to the characteristics of the Internet and software, the late marginal cost of online education service is almost zero, so the late expenditure cost will be very low. At present, the price of online education is only half that of offline traditional education, but in the future, this price will be lower, and traditional educational institutions will face the terrible "price attack" of online education.

Therefore, the lower the cost of online education in the later period, the higher the pricing power, and the advantages of combining education with the Internet and software will be highlighted. A formed online education website, many of its costs will focus on marketing and sales.