How to Price Online Learning | Pricing Online Education & E-learning - Tagoras - 0 views
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Doris Reeves-Lipscomb on 27 Mar 13Blog post by Jeff Cobb, February 2010, Tagoras site, on pricing elearning. Explains price, cost, margin, value relationship. Excerpt: "What then are typical price points for e-learning in the association market? I am tempted not to cite any because the only other price points that should matter to an organization are potentially those of competitors. (And as Apple, for example, has demonstrated so well, even competitor pricing should be given only so much weight.) Additionally, our research suggests that only 20 percent of associations have any sort of formal process for setting price - which makes me wonder how much thought is being put into value, margins, and volume. Still, it can be helpful to have some sort of benchmark, however, general, against which to gauge your organization's pricing. We go into much more detail about pricing in our Association E-learning: State of the Sector report, but the average price per e-learning content hour in the association sector - based on our survey of nearly 500 organizations - is $56.79. Per credit hour the average is $73.97. So, for example, based on these figures, the average fee for a 90-minute Webinar that offers CE credit would be around $110. Conclusion I began this discussion by focusing on value, and it seems important to note as I conclude it that the price point is not only dependent upon perceived value, it helps drive perceived value. Part of what gives a Mercedes or a Louis Vuitton handbag its sheen of value is the high price point associated with each. To a certain extent, of course, the price is driven by underlying cost. But it is also true that these companies simply have the audacity - the organizational self-esteem, you might argue - to set a premium price. And people gladly pay it. Few associations, I find, are willing to take such an approach with pricing their e-learning, and perhaps few would succeed if they did. But my suspicion is that most organizations are pricing at a lower l