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I know, the margins must be incredible. A 20 student classroom is a cool half million a year in revenue at 27k each, let alone if you pack those classrooms with

I know, the margins must be incredible. A 20 student classroom is a cool half million a year in revenue at 27k each, let alone if you pack those classrooms with more students.

guiambros 9y ago
> the margins must be incredible. I highly doubt it. Running a school is a resource-intensive and expensive business. Hypothetical case: having 2 experienced teachers in NY/SFO should be around $80K each, +30% taxes/benefits, and you're already at $200K. Now add in school location, G&A, insurance, security, infrastructure, content development, and they should be close to break-even (considering the 10-25 students on avg). Now factor in all the pedagogical research, software development, and all the other things that AltSchhol is trying to develop, and they're likely several million dollars in the red. Given that AltSchool is a private school (and with wealthy investors backing it), I'd guess parents are going to be a lot less engaged with fund raising events, volunteering, and such. This adds yet another burden to their financials. The wildcard, of course, is their new (potentially profitable) software licensing business, which is probably why they're trying to get out of the messy and expensive business of running schools.