Pre schools in Mumbai offer a new payment structure to attract more admissions.
Forty percent of pre schools have closed down in Mumbai, since the lockdown says the umbrella foundation of pre schools ‘The Early Childhood Association’. To revive their business, nine pre schools in Mumbai confirmed that they have started a new monthly payment structure. This allows parents to pay on a monthly basis and not on a quarterly basis.
A pre school centre head, Paramita Mitra says their pre school has seen a rise of 50 percent in the number of admissions after offering this new structure. “Admissions have gone up and as of now positivity is there and parents are paying for the next month admissions also,” says Paramita Mitra, Centre head, Mindseed Pre School, Sanpada.
The Early Childhood Association indicates that, 20 percent of pre schools in Mumbai are at the brink of bankruptcy. The Association also added that 20 percent children have dropped out of pre schools. Out of this, 15 percent have dropped out due to high quarterly fees for online classes.
Schools in Mumbai that are offering this new payment model have seen a 20-30 percent increase in the number of admissions. Parents also prefer this new model, as it is cheaper and more flexible. Alpona Desai, a parent who has opted for this new payment structure says “Lot of people are suffering from business losses, so making an annual payment, or half yearly payment is a big thing. Paying monthly is easier on the pocket. Gives you a flexibility of payment and choice of school.”
However, not every pre school in Mumbai is following this structure. Nirmala Naidu, who owns Euro Kids said that the new structure is too unpredictable. “It will not put me in the right picture to plan my budget accordingly,” she said.
The founder of the Earlyof Early Childhood Association, Dr. Swati Popat Vats, also believes that pre-schools cannot bank on one particular measure. They need to look at the bigger picture and come up with other ideas. “The only way you can get parents to trust you is by having a quality online program. It is by educating parents about the benefits of continuing education.,” she said.
According to Dr. Swati, This new model could become a saviour for more pre schools and help them revive their business in this pandemic. But, they also need to come up with more measures to ensure that both education and their business isn’t hampered.