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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]But why is the case tuition is very similar across private schools in dc. Same average cost. Not sure.[/quote]

Have you ever noticed that Mercedes BMW and Lexus all have cars in a very similar price range.? Why is it that Honda Toyota and Nissan are all in the same price category?  Is this legal?
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When you buy a Mercedes you don’t pay over 12 years and at the third year the price starts rising like crazy. Again. Private education is not like buying blue jeans. [/quote]

On the contrary, what your jeans and your Mercedes and your private school have in common is they are all subject to the free market, and they are also subject to the very real cost of providing that product.   In the case of a school, they all have to pay approximately the same salary to each of their teachers that a competing school will have to pay.  There is a cost per square foot for real estate that is fairly consistent. And when school A wants to raise their tuition to 58k to cover their expenses, but they notice that school B is getting the job done for 54k, school A just might think twice and go to 56k which appears really close to the tuition from the other school.   This is all free market stuff.[/quote]

Yes. They are in the free market except that they don’t pay taxes like any normal corporation and they could pass those savings to the parents via lower tuition. Am I missing something? [/quote]

Corporations generate profits for their shareholders. If schools are run like for-profit companies, then their goal would be to maximize profit for shareholders. Instead, private schools are non-profit. Part of the income they receive goes to the salaries to employees, but the rest can go into savings or other expenses of running and maintaining the school instead of into the pockets of investors. This means that the school doesn't have to operate with profit in mind, though obviously it is better for their survival if they do not go into debt. They do need to maintain enough of their endowment to maintain longevity. They can't just give it all away in the form of low tuition and survive, especially when parents expect nice facilities, activities, resources, etc. There are such things as private for-profit schools if you are interested, but for various reasons you can look into yourself, these are generally not considered as good an educational model as non-profit schools. If you want this route, BASIS McLean is such a school. [/quote]

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