The concept of raising the tuition at Nobody State University can increase or decrease the school’s revenue. The university must prepare to have a decline in enrolment once tuition increases for them to have an increase in revenue in the short run while in the end the institution will have few enrolments. In special circumstances, an increase in tuition cannot have a reduction in enrolments. In that case, an increase in tuition will amount to an increase in revenue at Nobody States University.
Revenue is likely to rise if an increase in tuition will also attract an increase in enrolments or the same enrolments. The condition that can make this to happen is high demand in higher education sector as well as a responsive economy. In that case, revenue would increase, and it would not remain the same or remain the same in response to the economic industry. Revenue is likely to fall if an increase in tuition will have adverse effects to the customers. Parents may feel the fees is too expensive and will drop out from the institution in search of less cheap learning institution. Revenue for the school can remain the same if similar institutions increase their fees as well or an increase of revenue with low enrolment the school can have the same revenue. Tuition raised in the past has not remained the same or lowered while in the event of an economic crisis it is possible for the tuition cost to increase.
Tuition cost can go up in the presence of the economic downturn, and the situation can lead to low enrolment in the school. The developed countries experience high cost of tuition in the learning institutions. The primary reason is the government replacing state revenues with private revenues since the state provides low subside for the running of the school. The school tuition cost continues to rise sharply since a move to cut back on subsidies is never reinstated, and that can affect the proportion of the cost to the college. Consequently, the school has a high administrative cost to pay than instruction, and this situation can force the school to increase the tuition to meet the high cost. Administrators have an incentive to increase the college costs since all the input of the university ranks in the algorithms.
I can attest to the fact that most of the universities have the intent of increasing both revenue and the enrolment. It is challenging to increase the number of enrolment and the tuition cost. One has to consider the significant resources in the school to ensure the school does not stretch itself beyond full capacity. To achieve any growth in the school will, usually, come at a cost that can have an impact in the net revenue. It is critical for a learning institution to raise the enrolment and academic profile by using an aggressive, balanced approach to focus on a mid-quartile growth. The institution should conduct research to determine the effect of raising the standards through a pilot project prior to full implementation. The conducted research should also determine the impact of the retention. The school board should understand the current market share of students in their locality before raising the tuition cost. Other strategies that the school can consider include holding scholarship recognition day, emphasizing on off-campus opportunities, promoting graduate school placement outcomes, introducing high school honors program, increasing scholarship levels and developing high profile academic majors that can support enrolment growth.
Some of the revenue generating ideas that the universities include creating a website so that it can place adverts. Advertisers will provide the service to the students while generating income for the school. The administration of the school should allow a supplement of the salaries from grant funds while those that teach from the faculty receive stipend from the government. The university can introduce online courses where students can complete degree programs to reduce the need of classroom space and the need for parking.
References
Bakerson, M. A., & Miron, G. (2009). Persistence and success: a study of cognitive, social, and institutional factors related to retention of Kalamazoo Promise recipients at Western Michigan University. Buffalo, N.Y. (25 Nottingham Ct., Buffalo 14216-3199): Oxford University Press.
Brown, R. (2010). Higher Education and the Market. Hoboken: Taylor & Francis.
Brown, R., & Carasso, H. (2013). Everything for sale?: the marketisation of UK higher education. Milton Park, Abingdon, Oxon: Routledge.
Neill, C. M. (2013). Higher education policy, education outcomes and credit constraints. Amsterdam: Kaynak Yayinari
Ragins, M. (2014). Winning scholarships for college: an insider's guide (3rd ed.). New York: H. Holt.
