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When the Customers Don't Come
Private Colleges’ No-Show Business
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  • Andrew Allison

    “The college’s discount rate for all students in 2013 was an eyebrow-raising 57 percent . . .” suggests that the slashing was hardly selective. That the average revenue was 43% of the advertised price suggests that the latter was completely unrealistic. What’s going on?

    • Corlyss

      Speculating here, but I bet it has something to do with the amount of fed funding they can pull in.

      • Anon in CA

        The argument is that a high sticker price is a signal of quality, and that actually attracts more students, as does a high level of aid. It seemed to be working in the early 2000’s, when consultants advised my institution to raise tuition by 10k per year but also raise financial aid by 10k. We did see enrollment increase, but the environment is changing now and families are becoming more savvy about this approach, and more price sensitive.

  • fastrackn1

    Wow, even colleges are using MSRP!…you know, the price that is supposedly suggested by the manufacturer, but no one ever charges…so you feel you are getting a really good deal when you pay less than MSRP.

    Maybe they could try other intelligence insulting pricing, like buy one get one free, or pricing that ends in .99

    Tuition could be $9,999.99 a year….

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