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
Gray Associates CEO Robert Atkins Speaks at NACUBO Meeting
Gray Associates Founder and CEO Robert Atkins is a presenter at NACUBO 2018, the annual meeting of the National Association of College and University Business Officers. He and co-panelist Karen Whitney, Chief Financial Officer of Northcentral University in San Diego, will discuss “Using Financial and Market Data to Decide Which Programs to Start, Stop, Sustain, or Grow.” The session is scheduled for 8:15 – 9:30 a.m. Monday, July 23, in Level 2, Room 203BC at the Long Beach Convention Center.
Session participants will learn how to analyze program margins and markets to better guide the restructuring of their institution's program portfolio. Mr. Atkins and Ms. Whitney will discuss how to free-up funds trapped in failing programs and invest in current or new programs, with the potential to maintain market share or even increase enrollment - a daunting objective in today's higher education landscape.
In addition, the panelists will provide a data structure that can capture direct program costs and revenue while identifying unexpected opportunities and pitfalls that affect colleges' and universities' fiscal health. Finally, they will explain how to combine this information with market data to assess the viability of current and potential programs.
The session will help participants:
- Discover the best sources of data on the markets for academic programs, including information on student demand, competition, and employment opportunities.
- Manage the analysis of program revenue, cost, and margins.
- Facilitate an efficient process that brings together relevant data, faculty, and administrators to make sound program decisions.
About Gray Associates
Gray Associates, Inc. is a higher education consulting firm. We help clients develop fact-based institutional and marketing strategies to maximize outcomes for students, the school, and its constituencies. Gray uses proprietary analytical techniques and an industry-leading database combining information on inquiry volumes, demographics, competition, and employment, to help faculty and school leadership develop institutional strategies, select programs, pick locations, and prepare curricula.