Price Optimization in Higher EducationOptimizing price can have substantial near-term financial benefits for most higher education institutions. The right prices enable institutions to drive enrollment growth, improve cash flow, or, more often, a blend of the two. The results of these changes can be substantial. Importantly, pricing is also one of the few institutional changes that can be made relatively quickly–since there are relatively few changes required in institutional systems and behaviors.
To answer critical questions related to pricing, Gray's approach includes the following phases:
- Analyze the Competition - compare competitor prices to determine how prospective students might assess your pricing.
- Survey Design - create a set of offers that include price level, discount, communication and other factors to be tested.
- Develop Sample - identify a robust sample of relevant participants for the survey.
- Conduct Survey - collect and tabulate results.
- Build PC Simulation - use simulator to estimate effects of various price levels, structures, and communication approaches.
- Build and Run Financial Models (optional) - project the effect of pricing strategies on revenue and profit.
- Select Strategy - share results with leadership.
Learn more about Gray's approach to increased growth and cash flow by completing the form to the right to download Gray's Price Optimization White Paper.
In the illustration below, financial results are realized at $25,000 in tuition.