This time around, we focus on the “E” aspect of ARMED Framework (which is, by the way, the DREAM Framework, revisited) – “Enrollment.” In more and more of the schools I speak with and read about, many say that it all comes down to money. At this time of year, schools have wrapped up the previous fiscal year, and are finding they have uncollected tuition, or expenses have surpassed the income they projected for this year.
But not every school.
A few years ago at this time, I received an email from one school I closely worked with that said they finally finished a school year in the black. What’s outstanding about this is that they did this for the first time in many years, AND they did it in a year where economic conditions were the worst this nation has seen in a long time.
They have an enrollment system, they make sure their parent and child experience is an exceptional one, market their school to their community, and have a development program in place. Not only has it cultivated major gifts, but they moving into planned giving!
The point is that they’ve discovered that it’s not all about the money. It’s not even all about the enrollment. It’s really all about ALL five of the elements of Advancement working together at the same time – but let’s let enrollment shine here this week.
So here’s a little quiz: As a school administrator, if someone asked, “What would you rather have…10 more students, or $10,000?” what would your response be?
If your mindset is that “It’s all about the money,” then I’m sure the cash would be your first instinct.
However, may I suggest that 10 more students be the preferred answer. First, it fulfills the mission of the school, and bringing more people in to your school’s community can certainly foster ministry goals. Second, the $10,000 would, in most cases, go towards balancing the budget, which means no real significant improvement in the financial situation of the school. Third, if your school’s tuition is $4,000 per child, 10 children that could pay an average of $1000 each is $10,000. Some may not be able to afford that, but some may be able to pay more, and one or two might even be able to pay the tuition in full! Fourth, new students represent renewable revenue. If the children return each year, that add not only to your enrollment’s bottom line, but your fiscal one too. Fifth, it means that more families will be involved in your school community, which is also important to its long-term viability, and, if their experience is an excellent one, they will become evangelists for your school.
Chances are that if you have ten parents that want their children to come your school, you could say to them, “Our tuition is $4000 for the first child…” etc. But, if you say, “Our announced tuition is $4000 per child, but the average tuition is $2200 per child because of scholarships and financial aid. Over a 10 month period, that comes to $220 a month, which is about $11 a day – some of our parents pay more depending on their blessings, but some pay less than that too. By the way, if you’re used to paying for childcare, our tuition comes to about $22 a day without financial help. And that’s about $4 an hour.”
Unfortunately, many schools do not use that verbiage. In fact, their full tuition schedule is posted on their Web site. Today, posting your tuition on your Web site is a GREAT way to lead your school toward closure. Parents who are interested in your school for their children’s education will take one look at it, say to themselves, “I can’t afford this,” and you’ve lost them before you even get them in your door! If you’d like to know why it was suggested to be posted to your school’s Web site when your school first got a Web site in the early 2000’s, send an email to me by visiting this link, and put the words “Why Publish Tuition” in the subject line.
Sales professionals today know that the environment of commerce has changed thanks to the Internet. Today, if you want to buy something, the Internet is now the world’s marketplace. If someone knows what they’re looking for, they go to the Internet, check out Amazon, Ebay, or some of their other favorite sites, then either order it, or may visit a local store to get more details, and then go back home and order it. Or, the more prevalent trend is they’ll find out more about in the store, and while they’re there, get their mobile device and order it. The current prevailing wisdom is that if someone comes in to a retail facility, from Best Buy to a car dealership, the sales process is already 70% complete. What you, as a school administrator, need to know today is that Enrollment = Sales. The processes are the exactly the same, as demonstrated by the funnels that track “prospects.”
Until just a couple of years ago, there was a slight uptick in enrollment in faith-based schools. Today, I’m hearing of more schools closing again because of enrollment and financial concerns, and, frankly, it upsets me. Repeatedly, I hear, “There’s very little we can do about the economy and changing demographics.” While that’s true, it’s not the reason schools are closing. The real reason deals with mindsets, and the failure to realize that families and processes are different today than they were 20, 10, even 5 years ago. Unfortunately, someone on the school’s staff who says, “That’s the way we’ve always done it” (TTWWADI) is really saying “We’re not interested in accommodating today’s parents.” It’s the phrase that will cause downward trends in your school’s enrollment. While tradition is important, especially the richness and beauty of one’s faith’s tradition, technology has a pervasive impact in every aspect of our lives today, and education is not immune from these shifts.
If you want to post your tuition on your Web site, tell parents what it comes down to per hour. For instance, if your tuition is $3500 per year, consider that children are in school about 990 hours per school year. That’s $3.54 per hour. Note the effect of a price increase of $500 per child, where tuition becomes $4000 per student. $4000 divided by 990 is $4.04. Fifty cents an hour has a little different ring to it than five hundred dollars per year.
Not to sound condescending, but I’ve realized that many parents today have difficulty with large numbers. Some parents have said that $400 per month over 10 months is difficult for them to pay, but since they get paid twice a month, they could pay $200 per paycheck. As strange as that may sound, giving parents this type of payment option is actually helping families afford a faith-based education for their children.
As for the tool to assist in your efforts for enrollment success, it’s FREE! Visit the SchoolAdvancement Web site at http://schooladvancement.com/?page_id=495. You can read about BASIQS there, then hover over “ENROLLMENT” in the menu at the top of the page, and check the drop-down menus for the resources and instructions.
Let’s capitalize on the new generation of parents checking out your school this summer. While this month is an awesome time to rest, refresh and re-energize for the coming school year, let’s add another “R” – realize – that the new school year starts in just a few weeks! Remember, too, that many successful ventures began in difficult economic times. May your ventures and adventures be abundantly blessed!
© Michael V. Ziemski, SchoolAdvancement, 2006-2017