Hazardi172
Blue Belt
You're misusing the term "opportunity cost". You can only apply that term when the alternative use is an option. If you're planning to actually go to that next class, then that money is allocated and is not available for alternative spending.
Actually my friend, as long as the alternative use is possible, there is no opportunity cost. The alternative is always an option until the money or time is spent. There are always potential circumstances where alternative use will be preferable. This is the essence of the understanding of opportunity cost. Don't worry, it isn't a trivial concept and many people get confused thinking about it
And you keep ignoring the fact that monthly payment is actually cheaper (significantly) for the student. They are losing money by paying per-class.
Training as and when with me is significantly cheaper than monthly payment with other people because I have no overheads, no accounts, no nothing but training with friends and receiving a gift as thanks which I pocket and then spend! . It is pocket money quantities and I am not motivated to be the tax collector for the government against myself when the amount involved is so trivial.
You keep making the same derogatory comment over and over, without being able to provide a single explanation of how they would earn more money by holding a few dollars for a few weeks, nor are you able to address the loss by paying more frequently. You clearly don't actually understand the time-value of money, so I'm done with this discussion.
I don't think I have been derogatory? I also don't think that time value of money means in this example what you think it does
There are so many ways to use money to make money, and in fact this is what I do in my everyday life. All it takes is a little imagination.
When you teach, you do what seems best for you (except for that part about evading taxes - that's just wrong). I'll do what's best for my students, and stick to following the laws.
Clearly it would be better for some of your students to pay whenever they wanted to turn up, and not have to make the choice of either paying you when they don't turn up, or turn up when they don't want to. For example those who often have other things to do, don't value what you are teaching all that much, sometimes have a life on nighs when you are running your class, that kind of thing .
My own experience of pay monthly is that it tends to be more expensive, because it is done by people who approach MA as a business. If those people give an option to pay by class then they overcharge, both in order to funnel people into their money stream of pay monthly, and also because they are not approaching it as fun and a hobby, but rather a business, and a business exits to maximise returns to the owner. I personally don't like being taught MA by someone doing it as a business because MA is so full of awful ideas and bad teaching. I prefer to train with people doing it for the love, who have other ways to make money, and who don't have to be doing it .