PS&L Blog

As you know, the deadline for having a net cost calculator on your school’s website is October 2011 (less than a year away).   Whether you already have a calculator or are making a decision about which one to use, this is an excellent opportunity to review your messaging as well as the look of your tuition price tag.

In my last editorial about  
Value vs. Cost I mentioned the common pitfall of inconsistent messages about cost of attendance.  Consistency is key – not only with the dollar figures, but also with the messaging surrounding your cost.  Everyone involved with admissions and financial aid must be trained on how to explain facts and figures and convey the value of attending your school.  Now you must add a net cost calculator into the mix, too.

Theoretically, a calculator should raise positive awareness and help folks understand the complexities of net cost.  At the same time, the mere presence of a calculator will draw more attention to your price tag.  The value of the calculator can backfire if the process creates negative views and tuition sticker shock.  The metaphor “slippery slope” is appropriate here.

The action of a calculator involves the consumer inputting data – or answering questions that customize their data – causing them to focus on these facts before they get to the bottom line cost.  This is contrary to our tendency as consumers to zero in on the bottom line first and then read the individual parts of the sum.  Also, when calculating net tuition, the prospect will be considering all financial aid options and looking to apply these awards and entitlements to decrease their net calculation.  Interesting.  Will net price calculators make students and families more aware of the costs and financial aid options, or will it cause even more confusion and need for more personal attention?

I attended a presentation about this popular issue at the CCCU Enrollment Management Conference in Ponte Verde, Florida in January.  A representative from one school who has the calculator in place volunteered information about how they leverage the calculator to have more conversations about their value.  She said the conversations led to a better understanding of the value of that college and helped engender a level of trust between the admissions officer and the prospect.

What was a bit surprising was that most of the questions after the presentation were focused on the the costs of licensing or building the widget.  (Ironically it seemed there was nervousness about the price tag.)

What you need to do is assess how your net cost calculator will be integrated into your overall marketing.   Where is it on your website?  What does it say?  How will your different segments respond to the calculator?  Do you need a different approach for different segments?  Is your financial aid office in sync with admissions and are your students getting the same message from both offices?  Do you need to prepare for more customer service training?  Have you considered testing different calculators with sample audiences?

Having a net cost calculator is a federal mandate, yes, but successfully communicating your cost and your value always has been vital to enrollment management.  Let’s hope net cost calculators support the cause and not become a monkey wrench.  Be sure to keep all of your staff who interface with prospective students and families in the loop and make sure your recruiter training includes value vs. cost sales techniques.

In case you missed it – here is the November article about net cost calculators that appeared in the Chronicle of Higher Education.