Why schools should give a big discount on fees | Pakistan Today

Why schools should give a big discount on fees

As an economist, I have come up with four reasons in favour of the fee reduction:
1) Schools charge fees against a service they provide. Like any other service provider, if one isn’t providing a service or only providing a partial service (distance learning), one can’t charge the full price. This is not a wish. It’s the law.
2) These are unprecedented times and companies across sectors are giving forced unpaid leaves and pay cuts to their employees. Why should teachers and other administrative staff in schools be treated any differently?
3) Other than reduced payroll expenses, schools are already saving big time on their overhead expenses especially utilities, stationary, petty cash, interest on loans etc.
4) School fees contribute not just towards covering expenses of a school but it includes a decent percentage of profit for the owners. Why shouldn’t school owners run losses or pay from their retained earnings for a change like almost all other businesses at the moment?
Imagine if schools insist on charging the normal fee, school owners would make even more than they usually do. How is this fair or even legal?
For arguments sake, I was also able to come up with one scenario where schools need not give a discount: if the parents don’t ask for one in the first place.

Mansoor Ahmed
Lahore



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