Program Economics from Gray Associates
Gray now has the capability to help you evaluate the markets for academic programs – and their economics. Many higher education institutions do not know the costs, revenue, or margin of their academic programs. As a result, institutional leaders must make programmatic decisions without a clear understanding of the effects on their college’s financials. Potential misunderstandings can hurt financial performance by closing programs only to find that the lost revenue exceeds the cost savings, or by growing programs that have high incremental costs but average tuition.
Gray’s Program Economics will address these potential misconceptions by estimating and tracking program profitability. Access to Program Economics, a SaaS tool from Gray, will enable colleges and universities to realize the contribution margin by program for each of the following metrics:
- Revenue by course and program
- Direct costs by course and program
- Indirect costs allocable to each program
- Contribution margin percentages and dollars by program