The profit difficulty of off-campus training institutions is mainly the problem of students. The operating costs of educational institutions are actually not high. Mainly rent, employee salary and daily expenses. The profit of this industry is still very high. In my city, for example, institutions charge students about two hours' tuition in 500 yuan, and give teachers about 150 yuan (class fees are higher in big cities such as Beijing). Less than one-third of the tuition fees charged by ordinary colleges and universities are teachers' class fees. Therefore, the profits of educational institutions are still very high. As long as there are students, they can make profits.

So why can't institutions make money? I think there are several reasons.

First, the threshold of this industry is too low, and there is almost no threshold, which leads to too many peers and serious customer diversion. If you want to open an educational institution, the cost is low. Some small organizations can just find a community and rent a private house. Someone asked if there would be any relevant departments to check. Basically not, even if there is, it generally means that several teachers organize students to make up classes, not for profit, and the inspection department will go away. Therefore, due to too many peers, students are seriously diverted, and students are greatly affected.

Second, students have limited class time. Nowadays, middle school students, especially high school students, make up lessons at school. Students usually only have one day off a week, and many school students are staying. This greatly shortens the time for students to attend classes. The organization wants to teach students, but students spend most of their time at school. We see that every institution has many students on weekends and in winter and summer vacations.

Third, some in-service teachers charge students tuition fees, and students are digested by the school. At present, many in-service teachers take their students for extracurricular tutoring. Students can tutor at school. First, teachers are absolutely trustworthy. Second, the time is arranged well, and there is no need to find a rest day. This once again reduces the number of students in the organization.

So as far as I can see, the profit of the organization is mainly on weekends and winter and summer vacations, especially in winter and summer vacations. Usually it is to maintain the normal operation level, and may even lose money. However, due to its ultra-high profits and ultra-low threshold, more and more people are pouring into this industry! But usually from Monday to Friday, there are few students. No way, this is the characteristic of this industry.

Fourth, the dual effects of high rent and online education. As mentioned above, a large part of the operating costs of off-campus training institutions are rental costs. In recent years, due to the increasingly high housing prices, the rental cost of training institutions is also increasing. In addition, with the improvement of supervision, the management department has also required the operating area of off-campus training institutions, and those who fail to meet the requirements are not allowed to operate. Therefore, the operating costs of off-campus training institutions are indeed getting higher and higher.

In recent years, due to the development of the Internet, online education has become more and more popular, especially in this special period (2020). The number of students is limited, and it is increasingly difficult for online education institutions to intercept more and more business of offline institutions. It is suggested that offline institutions try to carry out online teaching, make timely transformation, conform to the trend and reduce operating costs.