Dog in the Window: Exploring Private Higher Education Pricing Strategies
In private sector higher education, pricing is often the most interesting area to explore. More often than not, institutions tend to take one of the two positions on pricing: Either they want to be top of the range, creating exclusivity with the pricing itself, or, for those who are less sure of themselves, undercutting others and creating 'affordable' options become the name of the game. Both options, in my view, have inherent limitations, and one needs smart strategies for pricing to be successful. Those who price their offerings at top of the range enjoy the advantage of high margins, which allow them to afford better infrastructure and people, at least theoretically. In fact, this is, in many ways than not, a more sustainable strategy than trying to undercut the market and getting into a 'low-price trap' (more on this later). But, top of the range pricing also has inherent disadvantages. By pricing top of the range, the institution may miss out meritorious stud...