The survey of 13,000 private-independent school parents ISM conducted in 2009 in the depth of the recession showed that even in bleak economic conditions, 84% of parents said they would or would probably keep their children in their private schools. With 85% of parents reporting that their children were receiving an excellent or good education, perceived value appears to be the motivating factor.
Parents leave a school when they think the value of the education is no longer worth the price. And to consistently deliver the value parents expect, schools must adequately fund faculty salaries, staff salaries, employee benefits, academic and cocurricular programs, physical plant, fund raising, marketing, reserves, and much more. So tuition is the prime source of revenue.
ISM found no persuasive, verifiable evidence that independent schools were pricing themselves into extinction. Money, in terms of proper tuition setting, is not the game changer. The game changer for schools is adopting new technologies and teaching methods that focus on the student's individual learning experience to fulfill mission and solidify the value of the education the student receives. And proper tuition setting is based on understanding and acting on "relationships among pricing, customer service, marketing, and strategic planning."
For ISM's full commentary, click here.
