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In the environment of Local Management of Schools (LMS) two features in the cost structures of schools will dominate: high fixed costs (on salary and premises) and the minimal cost of educating a small number of extra pupils. As a result the incentive for a school to attract more pupils will be extremely high, and in such circumstances the consumer as pupil or parent will be sovereign. The likely effects of this sovereignty are discussed, and a list of 25 factors (The Competitive Edge) which influence a choice for or against a school are introduced. It is suggested that the factors represent the performance indicators which consumers will use. How teachers might adjust to consumer perceptions while fulfilling their professional responsibilities are considered, with a view to schools developing marketing strategies.

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