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Schools still have a very large proportion of their fixed costs to cover. Schools and their lecturers need to invest in perfecting onlive delivery. Therefore
by stblack 6y ago
Schools still have a very large proportion of their fixed costs to cover. Schools and their lecturers need to invest in perfecting onlive delivery.
Therefore it's not particularly realistic to expect schools to chop their top-line so soon.
This is clearly a transitory and uncertain period. With time, possibly less time than schools hope, they will be forced to adjust prices downward.
- siculars 6y agoYou adjust for that by increasing number of enrolled students. Not by pretending you are delivering the same product.
- Swizec 6y agoMany universities’ core product is exclusivity and hard-to-get-into status signaling. Increasing enrollment disrupts that value.
- kube-system 6y agoIt's more than just signaling -- the primary value of limited admission is providing greater networking opportunities and directing social and academic culture. Although, this is mostly lost by going online to begin with.
- josephorjoe 6y agoFor profit institutions do not get sympathy for their fixed costs.
- kube-system 6y agoMost large for-profit schools are primarily online, and have long been. Huge in-person campuses are primarily public universities.
- catalogia 6y agoYou might be confusing private nonprofit universities with for-profit schools.
- rb2k_ 6y agoDon't a lot of the bigger schools have billions of dollars in endowments that can easily cover fixed costs with their returns?
- kube-system 6y agoYes, but they're already using that money.
- randomdata 6y agoOne still cannot charge more than the customer is willing to pay. Of course, if the customer is willing to pay that much then it wasn’t too high to begin with.
- kube-system 6y agoMost are already charging more than the customer is willing to pay, thanks to scholarships/grants/subsidies/etc.