The rise of online education has brought great pressure to traditional educational institutions. So, what makes the price of online education so attractive? This paper will reveal the pricing mystery of online education from the aspects of cost composition and pricing power.

composition of cost

Compared with traditional training institutions, online education saves high venue rent and greatly reduces the cost of teachers. At present, foreign teachers only need to pay $65,438 +00-20 per hour on online education platforms such as 9 1 foreign teachers and VIPABC. On average, the salary cost of online education teachers is only 70% of that of traditional institutions.

Initial fixed cost

Nevertheless, the establishment of online education still needs to bear high initial fixed costs. Online education requires extremely high content quality and product interaction, so early investment in R&D and facilities is essential. A high-quality online education platform has a starting cost of at least 200,000-500,000.

The pricing power has gradually increased.

With the passage of time, the cost of online education will gradually decrease and the pricing power will gradually increase. The advantages of combining education with Internet and software are becoming more and more obvious. For a mature online education platform, marketing and sales will occupy a great cost.