Operating Model of a Daycare School
Hey guys, would appreciate some input here. I am modeling a daycare school (that offers classes to age 4 - 6 across maths, science and English) and have a question on how do I account for students enrolled across various classes. This is how I was thinking of laying down the operating model.
Maths = Capacity * Utilization Rate * Tuition / Student
English = Capacity * Utilization Rate * Tuition / Student
Science = Capacity * Utilization Rate * Tuition / Student
Some students take classes across 2 subjects and receive discounts of 25% on overall tuition. Those who enroll for 3 classes get 40%. In the future, the goal is to extend the course offering to maybe 10/12 courses, and so, discounts will remain to entice parents. My question is how can I build a dynamic model which also takes into account the bundled offers and discounts that students can get? How do I account for all this in the revenue build up? I am open to hearing any other suggestions on how to build the model. Many thanks!!
Hi Regularfreak, any of these topics helpful:
If those topics were completely useless, don't blame me, blame my programmers...
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Maybe break it down by:
Classrooms Student Capacity Utilization Rate = Total Enrollment % who enroll in one course % who enroll in two courses % who enroll in three... Avg Tution / Student (1 Course) Avg Tution / Student (2 Courses) Avg Tution / Student (3 Courses)
That’s how I had modeled it out. Was just curious if there was a better way.
Sorry for bumping old thread but interested in how this went.
Thinking about it it's a bit similar to how I modelled a telecom business: Revenue Generating Units X ARPU for gross revenue then you could do same for discounts to get net.
You could model utilisation / capacity separately. Take into account that usually people pay upfront for the term and If kids are absent then SOL no refunds but also means growth usually occurs at start of year only and rarely MoM
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