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November 17, 2022
Ability to Pay vs Willingness to Pay
"Is our price impacting our ability to enroll the students we want? Meet our mission? Shape the kind of community we believe is most conducive to student success? Live into our vision for the future of society?” These may be questions your board is asking as you begin deliberating tuition pricing for the following school year and beyond.
The article, "Tuition: Ability to Pay vs Willingness to Pay" by Mark Mitchell of NAIS was featured in the Fall 2022 issue of Independent School Magazine and poses these questions. The article explores the trends of tuition rate increases compared to median salary increases and describes the difference between a family's 'willingness to pay' vs 'ability to pay.' The article offers suggestions on how boards can begin to differentiate between these two enrollment dilemmas, and offers strategies to overcome them including lowering tuition.
There is more to consider, however, when examining why you may not be reaching your enrollment goals and the recommendation to lower tuition as a strategy to improve your school's financial situation, may not be the right advice for many schools.
Please join us on December 9th for a webinar with Terry Moore, consultant with Independent School Management, to unpack this article in more depth, including whether lowering tuition could be the right strategy for your school. See webinar details below.
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