Why should schools worry about value first and cost second? Let me paint you a picture.
My wife was exploring music camps for our son. She was adamant that our budget was capped at $2,500 because, with other children to consider, we needed to be prudent. She found three options: a five-day program for $2,500, which she rated as good; a three-day overnight camp for $3,000, rated very good; and a 30-day overnight camp for $5,000, rated excellent.
Given our budget, I expected that the five-day program was the right decision. “These are fine,” I said, “but I guess he will be going to the five-day program.” She looked at me, unwavering, and said, “No, I think we should send him to the 30-day program.” Stunned, I asked, “Where are we going to get the other $2,500?” She gave me a disapproving look, and our son went to the 30-day camp.
It’s incredible how consumers can adjust their budgets when they perceive significant value.
The Sticker Shock
Private school tuition has been climbing steadily. The average increase for the 2023-24 academic year was around 6-7%. According to www.boardingschoolreview.com, the average tuition was $56,875 in 2023-24. National Association of Independent Schools (NAIS) writes that the middle range annual cost of private day school was $29,653 in 22-23. These figures can make even the most determined parents hesitate.
But here’s the twist: Despite the daunting costs, many families still choose to invest heavily in their children’s education. Why? Because they perceive a value that far surpasses the initial sticker shock. Moreover, there are enough such families with the financial means to fill our schools.
The Value Proposition
When considering an expensive education, parents often look beyond the immediate costs. They weigh the potential benefits—the superior academic programs, the extensive extracurricular activities, the small class sizes, the unique opportunities for personal growth and the BRAND.
Among these reasons, is why my wife was willing to go outside of a stated budget and pay twice as much.
Communicating Value
So, how do you communicate this value? First, you need to understand what parents value. It’s hard to communicate value well if you don’t know what value the parents are seeking. Once you understand them, you can showcase the relevant, unique programs and outcomes that distinguish your school.
Let’s break it down. You have success stories of alumni, impressive college acceptance rates, and specialized programs that create a compelling narrative about your school’s offerings. You know you love to talk about how important the process of providing your education experience is. Are you explaining it well to the layperson? These are powerful tools, but don’t underestimate the naivete of a parent or student when you introduce these unique positions. If parents knew everything about education, they wouldn’t need to rely on teachers. They would just tell you what to do. Oh, some try to do that anyway, but they are a minority. Often, we haven’t explained the benefits of what we do clearly enough.
Adapting to Financial Trends
Adapting to financial trends is crucial for schools to thrive. This means schools must continuously evolve to meet changing economic realities. One key area of focus is enhancing academic programs. By continually improving academic standards and providing cutting-edge knowledge and skills, schools can ensure they remain competitive and offer the best education possible.
Another essential aspect is strengthening community engagement. Building a supportive community that involves parents, alumni, organizations, and 3rd party sites, not only enhances the perceived value of the school but also fosters a sense of belonging and loyalty. This sense of community can be a significant factor in a family’s decision to invest in a particular school.
Finally, investing in facilities and technology is vital. By keeping facilities and technology up-to-date, schools ensure that students have access to the best possible learning environment. Modern, well-equipped facilities can make a substantial difference in the quality of education and the overall experience for students, making the investment in education more worthwhile for families. Furthermore, it’s harder to get parents to look seriously at your education when there is peeling paint and stained rugs on their tour.
Conclusion
The rising cost of tuition may seem like a barrier, but for families who perceive significant value, it’s a worthwhile investment. Enrollment management professionals and heads of schools must focus on demonstrating this value effectively. By understanding the consumer, emphasizing unique programs and maintaining clear, informative communications, schools can ensure they attract and retain students who see their education as a valuable investment.
In the end, value trumps price almost every time. And for schools that master this message, the future looks bright.
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