For years, independent school expenses have increased beyond the rate of inflation. Tuitions have followed, sometimes substantially increasing beyond CPI+2. Whereas the gap between private school increases and CPI has been narrowing over the past 50 years, some have surmised that the practice of raising tuitions above inflation is making our schools unaffordable. They further hypothesize this is eroding demand and cannot be sustained. To reverse the trend schools should;
-reset their tuition at an “affordability range” based on local demographics (which should result in a lower tuition),
-refrain from tuition increases above inflation (and ideally would be “stable”)
Two methods to “pay for” holding tuition increases at a rate lower than school-related inflation are to:
-Reduce dependency on tuition by increasing endowment
-Find significant alternate revenue streams
This Webinar will use equation modelling and examples to demonstrate the intense pressure that taking a price-averse approach to tuition setting can have on your school’s ability to keep a balanced budget.You will leave with four basic conclusions that will help you shape how you approach establishing the right revenue mix at your school.
Run Time: 60 minutes; 45 minutes of presentation and 15 minutes for Q&A.