An outdated program portfolio may include once-great programs that now have limited student demand or jobs for graduates. Great new programs may be overlooked. An unfocused portfolio may have a scattering of small programs that are difficult and expensive to manage. Like good gardeners, educational leaders must regularly decide what to prune and what to plant.
Optimizing price can have substantial near-term financial benefits for most higher education institutions. The right prices enable colleges and universities to drive enrollment growth, improve cash flow, or, more often, a blend of the two. The results of these changes can be substantial. Importantly, pricing is also one of the few strategic changes that can be made relatively quickly — since there are relatively few changes required in systems and behaviors.
In the illustration above, financial results are realized at $25,000 in tuition.