Drew University last week announced that it was slashing its tuition by 20% from $48,336 this year to $38,668 next year. So what prompted this act of altruism?
Drew, like many small private universities, has struggled to maintain enrollment while charging a higher-than-average tuition.
So how can Drew increase enrollment and maximize revenue?
I am sure it took tons of meetings and focus groups, but any 7th grader could give them the answer:
- Lower the price
- Improve the quality of the product
- Improve your marketing (reputation)
Drew took the first step, which is the quick and easy one. The second two are harder and take time, especially with limited resources.
Throwing money at the problem is no longer an option for Drew. Now they will have to get creative to survive because their competitors will follow suit, and probably slash prices further. Only the most creative small universities will survive over the next 10 years.*
Oh, and parents, it would not be unethical for you to take advantage of this situation. Higher education has taken advantage of you for the past 20 years.
*A Property Prophet prediction, September 18, 2017.
[You know what caused this problem? Student loans. Don’t get me started.]