School Picnics - An Optional Luxury
Mar 03, 2011
One of the great challenges of being a social business is making sure your drive to be sustainable through profits does not undermine your social impact. I came across an excellent example of just such a conflict last week. Its annual school picnic season in India and Grace Model School recently held their picnic at a festive park made to look like the deserts of Rajasthan. They charged 200 INR(4USD approx)per student, which included lunch. The day was a great success, with an enthusiastic turn-out from students and teachers. The next day, my school correspondent told me that another local school had chosen the same destination for their picnic. They had booked the same number of buses for an equally large crowd but had charged 350 INR per student without providing lunch. My school correspondent was upset that another member of the local community could so obviously turn a profit on what should be a fun day for children but I still can’t decide how I feel about this.
In a business sense, developing more revenue streams will strengthen your bottom-line and improve the overall health of your operations. There’s an argument that school picnics are a perfect opportunity for this type of budget buffering. Children don’t need to go on the picnic, the way they need to buy books or uniforms. It’s an optional luxury for those who can afford it. If a few more thousand rupees here or there ultimately lead to things like higher teachers’ salaries or saving for large investments in land or infrastructure, then it seems to be a fair practice.
On the other hand, it’s a school picnic. It’s the one day a year that most of these children are allowed to the leave the small, insular communities into which they were born. It’s an incredible break from the ordinary, a refreshing change that leaves them cheerful for days afterwards. It’s hard to judge what that’s worth in rupees, but since there were just as many children willing to pay 350INR(7.5USD approx) at one school as there were willing to pay 200 INR at Grace, I’m inclined to conclude that the children see it as a very valuable experience indeed. There aren’t many optional expenses in affordable private schools that are perceived as valuable. An owner searching for a way to earn a little more would be hard pressed to find something more suitable. So is it better to make money on something like a picnic or to raise tuition? How about increasing the price of books? I don’t want students to miss the happy hours of carefree fun at the picnic but I do want them to get a good education. In the end, I think picnics are a great place to earn a little extra profit. I disagree with a margin of 150INR(3USD approx) per child, but the idea itself is a valid way to contribute to the financial stability of an affordable private school.
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