Presentation on theme: "Test Prep Professionals"— Presentation transcript:
1 Test Prep Professionals Test Prep TrendsKevin OrganisciakTest Prep Professionals
2 Test Prep Time LineKaplan migrates click and mortar to LiveOnline, begins to divest in Physical locations, eliminates Marketing Managers in favor of campus repsStanley H. Kaplan begins tutoring in his Brooklyn BasementKaplan Acquired by Washington PostKaplan segments market, uses Commodity pricing strategyKaplan Higher Score GuaranteeKaplan Acquires MGMATKumon1930s s1980s1990s2000201020122014SylvanThe Princeton ReviewTPR Acquires MCAT Hyper learningRevolution PrepTPR Brand sold to Charlesbank PartnersTestmastersCATPR goes publicClub Z tutoringHuntington LearningTestmasters TXManhattan GMAT
3 The Test Prep and Tutoring Environment 22% of US parents with children now pay for tutoring services --The EconomistThe growth in households now paying for tutoring services averages 4% per year--The EconomistWorldwide tutoring is projected to surpass $100 Billion in revenue by 2015-Global Industry AnalystsNumber of tutors being hired up 18% --NY TimesUS Test Prep Tutoring Revenue and supplemental education tutoring services is projected to be between $10-$12 Billion--Global Industry Analysts6% of revenue currently attributable to Online Tutoring in US market--Asia Times
7 So…What are some actionable and impactful steps to take given your business model? 1. Determine your current and past margins2. Figure out your specific competencies3. Shift frames to a cost-per-lead or cost-per-enrollment4. If you have not, consider your offerings as a stock portfolio5. Consider either broadening or narrowing your product portfolio (to do this one would figure out the ROI for each product separately).6. Look to integrate more online tutoring into that portfolio and measure the impact on revenue and expenses.7. Set yourself up with some sort of e-commerce so that sales can be made 24-7 whether in-home or online.