With high tuition fees, why are many educational institutions unable to refund the unexpended portion in the end?

In the current environment, many educational institutions have gone bankrupt or ceased to operate. However, there is a problem that has become a hot topic of social concern and frequently appears in the hot spots of news everywhere, that is, whether the tuition fees paid by parents in advance can be refunded?

I have sorted out the current refunds of large and medium-sized institutions that have closed operations or closed some campuses, as shown in the following table:

Information is collected online

It can be seen that most of the more secure fees that can be refunded at present are two types: 1. Listed companies. 2The company mainly focuses on the business of primary and secondary school classes.

Among the education and training institutions that cannot be refunded, the hardest hit areas are three categories: 1. English institutions, including adult English and children's English. 2. Primary and secondary schools 1 to 1. 3. Early education institutions.

Why is this happening?

Because from the perspective of the business model, the net profit of primary and secondary school classes is high, the consumption of classes is stable, and most of them are charged according to the four quarters of "spring, summer, autumn and cold", and the pre-charging time is not long. At the same time, the institutions that mainly do primary and secondary school classes represented by New Oriental and Xueersi are listed earlier and have abundant capital.

In contrast, English language institutions, primary and secondary school 1 to 1 institutions, and early education institutions. There are several common problems:

1. Long advance payment time.

It is generally necessary to register according to the level or according to the class package, many of which take 1 or 2 years to consume the end of the class, and some even receive advance payments for 3 to 5 years.

Can these institutions switch to 3 months or 60 class hours in accordance with the requirements of the state, and even some places propose "first class, pay later"? Basically, it is very difficult, such as children's English institutions and early education institutions, in the winter, especially in January and February, the consumption of classes is very small, but the cost will not stop.

2. High cash flow income, but low actual net profit.

Primary and secondary class business, one teacher can teach 15-30 students. Only projectors, desks, whiteboards and other equipment are needed, and the cost is lower.

English institutions need to hire expensive foreign teachers, the actual cost of a foreign teacher is even equal to 3-4 Chinese employees, but also need environmental arrangement, teaching aids purchase, etc., the cost is expensive.

Primary and secondary schools are 1-on-1 business, and one teacher can only teach one student. For example, to go to New Oriental mathematics, pay 120 an hour, but 20 people at the same time, the total fee is 2400 yuan / hour, 400 for teachers, the institution remains 2000; and to the elite mathematics, pay 300 an hour, the total fee is 300, give the teacher 100, the institution remains 200. There is a 10x gap in profits.

Although the cost of early education institutions is low, because they basically have to open in shopping malls, the rent is high. At the same time, early education teaching aids and decoration costs are high.

3. Class consumption is unstable.

The business consumption of primary and secondary school classes is relatively stable, and if students take leave by themselves, they are regarded as automatically abandoned, and the class time is still allocated.

But English institutions, especially children's English and adult English, are very unstable, and children aged 3-8 often do not come and then need to make up lessons. At the same time, from January to February, the courses could not be started during the winter vacation, and the loss was about two months. The same goes for adult English.

The 1-to-1 business in primary and secondary schools is also plagued by the problem of leave. As it is 1 person attending class, you can take leave at any time. Sometimes, parents feel that the results at this stage are OK, temporarily do not make up, suspend classes and hang accounts.

The age of children in early education institutions is generally 1-2 years old, although parents sign up, but the urgency is not enough, a little headache brain fever, the sun is cold and do not come to class, easy to cause course accumulation. Therefore, early education institutions usually have a limitation period clause, such as a 12-month class, which expires in 15 months. Such clauses often give rise to disputes.

In short, the above situation has caused these institutions to operate with high income and high debt. However, the actual profit generation can not occur until all the lesson packages are exhausted and the contract is settled. However, due to various reasons, many times institutions can not stabilize the consumption of classes, such as winter vacation, such as students asking for leave, such as early refund, more terrible, such as the epidemic in the half year of 2020, and then the follow-up epidemic in various places, or currently under the policy, holidays can not consume classes, resulting in a large accumulation of class hours.

However, the cost, in the middle and late stages of the operation of the institution, is actually basically fixed. Labor social security, venue rent, administrative costs, sales costs, these will not be reduced with the suspension of class consumption.

Therefore, although many institutions on the surface, the monthly income can cover the cost, but in fact, many institutions' book funds can not give parents a refund.

And once parents ask for a refund in a large area, it will bring great pressure to educational institutions. Once it stops running, first the salary must be settled, then the supplier's accounts payable, and the landlord must be fined to terminate the contract and restore the blank, and finally it is the turn of the parents. The cash flow on the institution's books, after which it is difficult to fully process the parent refund.

At last:

1. It is hoped that parents who have already paid the fee will rationally choose to refund or consume classes, if a large area of refund, it may cause the institution to immediately stop operating, resulting in greater losses. Exhausting the lesson is an option.

2. When registering for a new educational institution, it is recommended to pay according to the 3 months or 60 class hours recommended by the state, and choose rationally and carefully for large class packages.

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