Key Components for a Competitive Pricing Strategy
In this difficult economy, higher education has seen a rapid rise in demand for need-based aid and a decline in the ability of many student applicants and their families to pay the costs of college tuition. Institutions have been responding to the economic pressure in a variety of ways — sharp tuition increases, tuition freezes, repackaging financial aid. Two prestigious schools that had adopted no-loan policies have recently canceled them (Williams and Dartmouth), finding them no longer financially tenable. Middlebury College recently opted to limit future tuition increases to 1% above inflation. In this economy, your pricing decisions need to be informed and deliberate. Kathy Kurz, vice president of Scannell & Kurz, Inc., outlines the key components to consider as you frame your pricing strategy in this market. Make Sure You’re Comparing Yourself to the Right Competitors “The first mistake we often see institutions make is comparing themselves to the wrong set of competitors.”Kathy Kurz, Scannell & Kurz, Inc. Most likely you have a set of peer and aspirant institutions that you compare yourself to in terms of student/faculty ratio and other metrics. But is this the right group for comparing sticker price and tuition discounts? Kurz suggests that to […]

