$300 Wine

The families who pay the full tuition at our schools make up the wealthiest citizens. NAIS places them around the top 3% income earners in the country. While they have also had their share of impact from the current economic crisis, it is relative. So if they still have the money, then how has the economy impacted their thinking, their choices?

I have had the opportunity in the last couple of weeks to speak with some very wealthy folks. We’ve discussed how spending and decision-making has changed. In a word: value. They still have the money to spend and they are still willing to spend it but they are more thoughtful about their choices. What can they get for their dollars? Like before, they are willing to drop $300 on a bottle of wine at dinner. The difference? They now want to spend $300 on a bottle that is actually worth $400. An article in the recent Conde Nast Traveller magazine mirrored this mindset. This demographic is still willing to pay $800 per night at a resort but now they want daily complimentary breakfast, pick-up from the airport, and a spa credit. Now they want value.

When families look at our schools, they assume certain things. They imagine good teachers and superior academics. Right? When were you last asked about the hiring process for teachers or about their professional development? They expect we are thoughtful in our hiring and in our admissions. They assume cutting-edge technology, the safety of their child, and a commitment to excellence. And before they were willing if not happy to pay for that.

But where is the value we can offer now? What can we offer that is not found at other schools…or at least at other schools they may typically consider? What value can we offer so they feel as they are getting a $60,000 experience and education for their child while only paying $45,000? These folks didn’t become the country’s top earners without being smart and savvy.

It may be exhausting if not annoying (or insulting or frustrating...) to think we need to find something to offer more than an excellent education for their child that sets them up for life but if we want to have the edge in challenging economic times with these important families who pay full tuition we better figure out what value we offer.