The cost of courses - Over priced or justified?
Back in 1997 I did a Higher via evening classes of about 2 hours each. The cost of about 100 hours training over a year? Around £50.
50p an hour. This was in a language which took the teacher about 6 years to become fluent.
Earlier this year, I signed up for an advanced management diploma. The cost of 4 hours training a week for a year at a college? Around £1500.
Around £7.50 an hour.
I looked into doing an MBA. The cost of this for a year? About £3,500. Around £20 an hour.
I'm looking around at the moment at doing the PRINCE2 practitioner exam. The cost of doing this ?
According to the training index at Underoak, about the cheapest I can find is £1,390 + VAT for 5 days.
Around £50 an hour. More than twice the price of a university education.
The cost of doing a non certified course, say in advanced Java? Around £1,600+VAT for 4 days.
Around £67 an hour
There's quite a difference between £7.50 an hour and £67 an hour.
Assuming a mere 6 people attend a course, the maths works out as
£1,600+VAT * 5 = £9,400
Trainer's actual salary = £40,000
Scale up on the assumption they only work 1 week in 3 to prepare the course = £120,000
Add on a factor for their overheads and training = £150,000
So cost to employ a trainer = £3,000 a week
Cost to hire a conference room £ 110.00/day or about £700 a week including VAT and refreshments.
Total cost rounded up, around £4,000.
Total income = £9,400
Total profit = £5,400 a week, around 57%.
Just for comparison, the gross profit of Learning Tree is around 50%. Not much different to the profit percentage above.
Am I just imagining it or have course prices reached a settling point?
Back to economics. In an unregulated free market, the main beneficiary is usually not the consumer, it is the providers. They are free to set prices, potentially form cartels and importantly there is usually insufficient incentive for them to reduce prices once the market has stabilised (until someone like EasyJet comes along).
In a free market with constraints, the consumer can benefit if cartels are broken, price fixing ends and there is genuine competition.
I'm not suggesting any cartels here but isn't it odd how training courses have all settled around the £1500+VAT mark per week.
Especially when back to the PRINCE2 example you can get a PRINCE2 practitioner and
hire them as a contractor for about £400 a day.
Including their overheads that can't be any more than about £600 a day or £100 a day per course attendee.
Why are courses £1500+VAT a week per attendee when you could hire someone to teach the course for only £100 a day to do a roughly equivalent job?
Am I missing something here or does the prosumer need to speak out and start setting course prices?
That would be an education for all.
In relation to further powers for the Scottish Parliament, I wrote to my SNP MSP recently. Feel free to reuse, share etc. Smith Commission...
BBC displays another example of the Scunthorpe problem . I am no longer allowed to use my name on the BBC site. See the screendump (click t...
The UK Government Digital Service (GDS) has just had a reboot . However will it be value for money and deliver its objectives? Will th...
I have already blogged about rude e-mails . These are emails sent by allegedly reputable companies who consider email to be a good enough m...
Comunn Gàidhlig Lunnainn - Lean gu dlùth ri cliù do shinnsir Newsletter, November 2011 AGM, 19 November The AGM of the Society will t...
An article on how Agile can sit alongside PRINCE2 and where DSDM Atern fits in. In 2007, I put "used an Agile/PRINCE2 development str...
Since 30th December, I've been doing a folk song of the day for the folk choir I am in, Morris . It's introduced the choir to new...
I typically get a lot of calls from Recruitment Agencies. Usually it's about 20-25 a week. At 5-10 mins a call plus the inevitable telep...
I got a mail from Scottish Widows recently (an investment company). Their email signature and disclaimer was 68 (sixty-eight) lines long. ...
Having recently returned from a holiday in Oban, I thought it would be appropriate to comment on the state of Gaelic having been involved in...