About the Episode
About the Episode: After celebrating 100 years of the Wood Family maple production, Seth and Mallory examine the complex world of growing discount rates at private faith-based higher education institutions, revealing the challenges and strategic considerations schools face amid shifting market dynamics. This episode uncovers the realities of financial pressures, the importance of brand positioning between quality and value, and innovative approaches to tuition pricing.
Leave a comment with your takeaways on Enrollify’s LinkedIn post and Seth and Mallory will pick two listeners at random to receive some sweet syrup treats.
Key Takeaways:
- The Rising Discount Dilemma: Growing discount rates are putting pressure on private institutions, forcing a reevaluation of enrollment strategies and financial sustainability.
- Branding and Pricing Strategies: The episode highlights the critical difference between quality and value brands in higher education and how misaligned pricing strategies can dilute brand perception.
- Institutional Examples: Discusses the bold moves by Colby Sawyer College and Lasell University to slash sticker prices to more accurately reflect what students actually pay, potentially setting a precedent for transparent pricing.
- Market Forces and Institutional Responses: Reflections on the broader implications of market forces on higher ed institutions, including the trend of school closures and mergers.
Episode Summary
The Discount Rate Dilemma
Seth highlights research from Bethel University presented at the CCCU conference, revealing record-high discount rates among private faith-based institutions. In some cases, these rates are so high that institutions are losing money to maintain enrollment levels. Seth questions whether this trend reflects an industry-wide inability to address shrinking enrollments head-on.
Why Are Discount Rates Rising?
Mallory explains how private institutions often over-rely on discounting to compete for students, creating unsustainable financial models. She points to the flawed incentive structures that prioritize volume over net revenue and notes the psychological appeal of scholarships and discounts in shaping perceptions of value.
Can Institutions Buck the Trend?
Mallory shares examples of Colby-Sawyer College and LaSalle College, two institutions that have slashed their sticker prices to align with actual costs. These bold strategies aim to simplify pricing and improve transparency, but their long-term impact remains to be seen. Both hosts agree that higher ed pricing strategies may need a fundamental overhaul, such as experimenting with satisfaction guarantees or income-share agreements.
Spotlight on Mergers & Acquisitions in Higher Ed
Mallory teases the upcoming Pulse Check mini-series, hosted by Ken Sajpal, which will delve into the increasingly common trend of mergers, acquisitions, and closures in higher education. Seth will be a featured guest, sharing his expertise on the opportunities and pitfalls of M&A strategies.
Connect With Our Co-Hosts:
Mallory Willsea
https://www.linkedin.com/in/mallorywillsea/
https://twitter.com/mallorywillsea
Seth Odell
https://www.linkedin.com/in/sethodell/
https://twitter.com/sethodell
About The Enrollify Podcast Network: The Higher Ed Pulse is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too!
Some of our favorites include Generation AI and Confessions of a Higher Education Social Media Manager.
Enrollify is made possible by Element451 — the next-generation AI student engagement platform helping institutions create meaningful and personalized interactions with students. Learn more at element451.com.
Connect with Us at the Engage Summit: Exciting news — Mallory will be at the 2024 Engage Summit in Raleigh, NC, on June 25 and 26, and we’d love to meet you there! Sessions will focus on cutting-edge AI applications that are reshaping student outreach, enhancing staff productivity, and offering deep insights into ROI.
Use the discount code Enrollify50 at checkout, and you can register for just $99! This early bird pricing lasts until March 31.
Learn more and register at engage.element451.com — we can’t wait to see you there!
.svg)
.svg)
