How a Small Liberal Arts University Set Its Price More Strategically
Every year, small private universities face the daunting task of setting tuition prices. It’s a delicate balance: how do you ensure financial stability while being mindful of the price sensitivity of your perspective students? This challenge is especially critical when presenting to the board of trustees, who ultimately approves the university’s tuition rates.
The Challenge With Setting Tuition and Fees
One small liberal arts university in the Northeast wanted to work with their board to set the upcoming year’s tuition and fees. This decision needed to be informed by research on how their rates compared to peer institutions, an understanding of their students’ perceptions regarding the value of their education, and, of course, their budgetary needs. To help them achieve this, they turned to RNL, a leader in market and research studies for higher education.
Our Approach: The Price Sensitivity Analysis
RNL’s approach to understanding price sensitivity involved a two-pronged research process. The first step was a Competition Analysis. This phase went beyond simply identifying institutions to which admitted students were lost. It involved a deep dive into historical enrollment patterns across different student groups, allowing for an understanding of key trends and an institution’s positioning among its competition.
Building on the insights from the competition analysis, a customized Price Sensitivity Survey was developed. This survey explored critical price questions with their prospective students and, when appropriate, their parents. The survey helped to understand not only how brand, price, and perceived value functioned independently, but also how they best integrated into an effective overall strategy.
The Impact: Setting Price With Confidence and Clarity
The study’s outcomes fundamentally transformed the university’s approach to price setting. Ultimately, the RNL price sensitivity study provided the university with the confidence and clarity needed for strategic pricing decisions. It transformed a stressful annual obligation into an opportunity to optimize financial health and recruitment success, empowering them to approach board meetings with data-backed conviction.
Address Tuition Setting With Confidence
Is your university facing the annual challenge of setting tuition prices that balance financial stability with market competitiveness?
Discover how RNL’s Price Sensitivity Analysis can provide the research-backed data and the confidence you need to make informed, strategic decisions for your institution’s future.