Competing On Price Is Bad Policy

Even though we are going to be $8 million in the hole that will require position and school day cuts, my hometown’s school board decided to give everyone raises [article here].

The money quote: “[Superintendent Mike] Scott recommended the board approve the raise, saying it could hamper the district’s ability to draw good candidates for jobs and may push some to other better paying districts.”

And he’s absolutely right if all he is going to do is compete based on money.

It’s a great lesson for all of us running a business. Competing on price is a lose-lose proposition. It is all about why people want your product, not what it gives them or how much it costs.

Same for my town. Our schools don’t have to pay top dollar for teachers and administrators if we compete on other grounds: excellent training, incredible support, fantastic curriculum, exciting opportunities.

No one goes into education for the pay, just like people don’t buy products because of the price. So why are we making it about the money?