Yes, the Parent/Customer should be expected to pay for lessons and the “other stuff.” Yes, the Studio/Teacher and Comp Organizer are entitled to make money.
I don’t fully understand how giving pricing information to the Parent/Customer is equated with telling a Studio/Teacher or Comp Organizer that they aren’t entitled to make a profit. Set prices that make you a profit - that's fine, that's reasonable.
But...consumer's perspective here:
I’m not sure we know enough about how the fees were presented to the Parent/Customer, and at what stage the sticker shock came. Was the Parent/Customer given a sheet of paper/invoice that said (for example):
(i) “All Inclusive Cost” $1,000, or
(ii) “Lessons and other stuff” $1,000, or
(iii) Lessons - 10 @ $U each = $V, plus Competition Entry Fee = $W, plus Studio/Teacher Fee to attend Competition= $X, plus Studio/Teacher travel/hotel costs $Y, plus Costume Purchase $Z, for a Total Cost of $1,000
If the Parent/Customer was given only the information in (i) or (ii) and asked for more details about what was included in “all inclusive” or what “other stuff” meant, did the Studio Owner give them the details in (iii)? It just seems to me that if the Parent/Customer knows the component details of (iii) upfront, then, even if they are “shocked” by the cost, they can make some informed choices. Maybe they would enroll their child in fewer lessons, or maybe they would ask about costume rental rather than purchase, or maybe they would not sign up for as many competitions or would ask about less expensive competitions, or maybe they would change to a different Studio/Teacher that charged less…..shouldn’t those be components that the Parent/Customer is entitled to explore? In my mind, that's a reasonable level of detail for the Parent/Customer to ask for. To ask for that information and to be told that the Parent/Customer is not entitled to it – well…..makes me suspicious.
And, no, just because the Parent/Customer might ask for the details in (iii) above, that does not mean they are entitled to, or asking for, details about how much the Comp Organizer is paying its judges, or how much the special effects lighting costs at the Comp, or how much it costs to rent the room, or the calculation that is being used by the Comp Organizer or Studio/Teacher to make a profit margin.….In my mind, information as to that level of detail is not a reasonable request.
Just my two cents.