It is no secret that inflation has wreaked havoc on every facet of our daily lives – from increased prices at grocery stores, to the increases that we have all experienced at the gas pump, we are in a period of higher costs in the United States. So as a school administrator, how does this effect the tuition-setting practices at your institution?
In a study performed by Independent School Management (ISM), data from 259 schools of all types, grade levels, sizes, locations, and affiliations showed that there is no measurable relationship between increases in tuition and subsequent changes in enrollment. The study instead found that the opposite was true – if schools can show value to the students and parents, the increased cost was seen as a worthwhile investment in the future of the student, avoiding enrollment decline and instead adding to the headcount and reputation of the institution.
This includes forecasting how much it will cost to adequately fund quality programs, including salaries, benefits, facilities, and more. This all adds to the fundamental value proposition that your school or institution offers to parents and students, as increased costs must equate to increased value to these individuals. When correlated to increased value, rising tuition costs are less likely to cause enrollment decline in private schools.
The key to increased tuition as a result of inflation lies in the value proposition of the education students receive from the institution. By demonstrating that value to parents and stakeholders, schools can actively address increased costs due to inflation while at the same time increasing enrollment and furthering their reputation in their communities. This means that institutions must continue to invest in the education offerings unique to Catholic schools, and effectively portraying that value to those enrolled, and new families interested in its programs.
At SJFS, we are experts in all things financial management for Catholic schools and institutions.
If you are interested in our input in your tuition-setting process, get in touch with us today – we have the tools, software and experience to make tuition-setting a seamless process, ensuring the best possible financial future for your school while addressing the concerns of families enrolled in your institution.