You are ready to market your contract training course to prospective companies. You have everything covered: what skills you will be training, which companies you will be targeting, and even selling your course as a business to a business. Speaking of selling, have we discussed how to price your course yet?
Your institution might have set prices for all courses, be they corporate or academic. Your school might require that you follow the same guidelines as for any other continuing education course. However, some schools have a little bit of leeway when it comes to pricing their corporate education courses. Here are a few things you should consider when putting a price on corporate education.
1. Calculate your Costs
Price should vary according to the costs. If your costs are high, your prices should be high in proportion so as to avoid losing money on the program. Courses with lower costs, therefore, do not necessarily need to have high price points.
2. Psychology of the Consumer
People can be tight with money, even if it’s not their own. The decision-makers are working within a budget, and they probably have an idea of what they want to pay. When you determine your price per student, don’t end with a round number like zero–instead, try to end with a five or nine. Consumers see prices ending in zero as expensive but feel much better about fives and nines (for example, a shopper might pass on the $90 product because it was too expensive, but she would snatch up the $99 product and consider herself savvy).
3. Supply and Demand
The market can be a fickle thing. A few years ago, most companies assumed that their internal harassment guidelines were sufficient. Now, however, those same corporations are scrambling to update polices and retrain their staff. Social change is not the only factor that can affect demand. Mining companies, for example, had to deal train their workers on safety and environmental regulations to stay compliant. Today these companies don’t need the same amount of training. You might be able to command higher prices for subjects that are in-demand.
4. Consider pricing models
This is especially useful for courses that are strictly online. You could charge a company per course. You could also run a subscription service: charging an annual fee in exchange for unlimited access to course materials.
5. Check Out Your Competition
Do you have competition in your area? What are other schools in your area charging for contract training? Schools that offer virtual courses face competition from all sides, so they should narrow down other schools according to metrics. For example, a small private college might not command the same fees as a large public university.
There are many factors to consider when pricing your contract training courses. Of course, every good higher education administrator knows that you should consult with others at your institution as needed before pricing a course. These are just a few tips for your department to use when helping them decide.
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