Hello!
I own a subcontracting business, but I lose clients when my contractors decide to do it on their own because of our markup. I lose contractors as well, as they are expensive to aquire and train
Let me introduce you to the business. It is a private school (one to one, or one to few), where we have our contractor teachers (choosen after selective process and trainment) that we may assign students for them in case there is a match student for him. The teacher focus only on teaching tasks, such as classes and classes preparation. The teacher may accept, or refuse a student, depending on his availability as he is a contractor. They sign a contract as well, with exit clauses forbidden them to take our students privately.
Students usually strives with the teacher we choose, because we evaluate the student's personality treats, interests, background (...) and match with the best teacher possible. The results are very good in terms of learning speed and having "fun" while studing.
The problem we are facing is when the teacher talks with the students asking how much we charge them. As we may have markups such as 1,5x to 2x, to cover our business costs and profits, the teacher gets demotivated. But we have all the acquisition costs (which is huge), risk costs (in case student does not pay us, we still pay the teacher), hiring costs, customer success, taxes, bank and business costs, that the teacher does not consider.
To make story short, when teacher asks student how much they pay us, he decides he wants to break contract with us, and then their students suddenly quits us, which likely the teacher offered a better deal. It is usually a batch loss, because teacher might have more than 10 students. We don't want to sue nobody in court, because of costs, and because it won't fix anything, and will make our business to look bad and profit-first.
We offer advantages to teachers, such as:
- Students management platform (calendar, class board, tools)
- Class materials
- We take care of students payments (which can be a pain for a teacher)
- If teacher doesn't want to teach a student anymore, we will handle it (usually teacher dont know how to say NO for a student)
- If a student stops, we likelly have another student for him, which is much faster than being on his own.
- We take care of aquisition (marketing, sales pitch, negotiation,.. can be a pain too)
- If student has any negative feedback for the teacher, he has somebody else to talk to other than the teacher.. and we will solve it
But we feel like we are on risk of loosing students in batch all the time, and we want to provide much more value for all the actors, such as students and teachers. Any tips on how to succeed in this kind of business?
I own a subcontracting business, but I lose clients when my contractors decide to do it on their own because of our markup. I lose contractors as well, as they are expensive to aquire and train
Let me introduce you to the business. It is a private school (one to one, or one to few), where we have our contractor teachers (choosen after selective process and trainment) that we may assign students for them in case there is a match student for him. The teacher focus only on teaching tasks, such as classes and classes preparation. The teacher may accept, or refuse a student, depending on his availability as he is a contractor. They sign a contract as well, with exit clauses forbidden them to take our students privately.
Students usually strives with the teacher we choose, because we evaluate the student's personality treats, interests, background (...) and match with the best teacher possible. The results are very good in terms of learning speed and having "fun" while studing.
The problem we are facing is when the teacher talks with the students asking how much we charge them. As we may have markups such as 1,5x to 2x, to cover our business costs and profits, the teacher gets demotivated. But we have all the acquisition costs (which is huge), risk costs (in case student does not pay us, we still pay the teacher), hiring costs, customer success, taxes, bank and business costs, that the teacher does not consider.
To make story short, when teacher asks student how much they pay us, he decides he wants to break contract with us, and then their students suddenly quits us, which likely the teacher offered a better deal. It is usually a batch loss, because teacher might have more than 10 students. We don't want to sue nobody in court, because of costs, and because it won't fix anything, and will make our business to look bad and profit-first.
We offer advantages to teachers, such as:
- Students management platform (calendar, class board, tools)
- Class materials
- We take care of students payments (which can be a pain for a teacher)
- If teacher doesn't want to teach a student anymore, we will handle it (usually teacher dont know how to say NO for a student)
- If a student stops, we likelly have another student for him, which is much faster than being on his own.
- We take care of aquisition (marketing, sales pitch, negotiation,.. can be a pain too)
- If student has any negative feedback for the teacher, he has somebody else to talk to other than the teacher.. and we will solve it
But we feel like we are on risk of loosing students in batch all the time, and we want to provide much more value for all the actors, such as students and teachers. Any tips on how to succeed in this kind of business?
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