Know-How Exchange : Strategy

Dear Rupamalas,

So, let me see if I understand this correctly. You have a premium product for which wealthy people are willing to pay boatloads of money, yes?

And you have a problem?

My dear chap, you have several things here but what you do not have is a problem. You probably DO need to see a doctor because in reality, you need your head examining!

Problem? Problem? Good lord, man! Have ya taken leave of yer senses? I'm kidding of course, but here what you've actually got is a printing press on which you can produce any amount of currency you want to, if you've a mind to.

To keep out the riff-raff (whoops! I mean "to encourage students who present special educational requirements") to seek alternative education elsewhere, (basically, to discourage the rich misfits) you might want to introduce tiers of higher fees.

So if Hufton Tufton Smythe's brat (sorry, Hufton Tufton Smythe's darling fluffy bunny) is a disruptive brat who needs to be cuffed and cuffed hard, why not make his parents pay for it while also whipping the kid into shape because you're able to afford teachers who are part Marine Corp Drill Sergeant and part Einstein?

This way you improve your cash flow, AND you have the satisfaction of knowing that your school can take the richest, brattiest of kids and instill the fear of God into the little buggers.

Harsh? Of course!

But perfectly aligned with the principles of a free market system.
Not being able to be selective in the students you take in? Hmm. price them out of the market. If student X from hell wants to come to your school, make it clear to mummsy and daddywaddy that mummy and daddy had better have really deep pockets, and that their kid's education is going to take place in YOUR school, it's going to be on your terms.

No debates. No arguments. No special prices based on who plays gold with whom. This is business. Treat it like one and be firm: for this result, for this outcome, your fee is X.

Take it or leave it.

And economy in the crapper or not (and honestly, that's a tale I'm getting weary of hearing) people are STILL spending money and the handful of areas they are unlikely to scrimp on (if they're able to afford it) is their child's education.

Yes, I could be wrong and under no circumstances ought you to move forward based merely on my opinion.

But I don't believe you have a problem. What you have is a golden opportunity.

I hope this helps.

Gary Bloomer
Wilmington, DE, USA

The image problem that you're referring to is in the eyes of what group of people? What problem is it causing for your school and the community?

Since no one else seems to think you have a problem, let me at least play devil's advocate.

What I see (potentially) is a classic failure to target your market. Instead of targeting those who you want to be your customer, you sold to anybody who had the money to buy. Now you have a bunch of customers that you need to cater to that potentially damage the brand and at the very least distract your organization.

So, the only way to really get out of this is to do a better job targeting those who you want to sell to and saying "no" to those who you don't want to sell to. The question I think you have to ask yourself is whether the organization can weather a potential drop in sales (enrollment) while you make the shift.

The other option would be to redefine your target market as "misfits with money." That may not be a bad option.

Good luck!

Melissa