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Test Prep Professionals

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Presentation on theme: "Test Prep Professionals"— Presentation transcript:

1 Test Prep Professionals
Test Prep Trends Kevin Organisciak Test Prep Professionals

2 Test Prep Time Line Kaplan migrates click and mortar to LiveOnline, begins to divest in Physical locations, eliminates Marketing Managers in favor of campus reps Stanley H. Kaplan begins tutoring in his Brooklyn Basement Kaplan Acquired by Washington Post Kaplan segments market, uses Commodity pricing strategy Kaplan Higher Score Guarantee Kaplan Acquires MGMAT Kumon 1930s s 1980s 1990s 2000 2010 2012 2014 Sylvan The Princeton Review TPR Acquires MCAT Hyper learning Revolution Prep TPR Brand sold to Charlesbank Partners Testmasters CA TPR goes public Club Z tutoring Huntington Learning Testmasters TX Manhattan GMAT

3 The Test Prep and Tutoring Environment
22% of US parents with children now pay for tutoring services --The Economist The growth in households now paying for tutoring services averages 4% per year--The Economist Worldwide tutoring is projected to surpass $100 Billion in revenue by 2015-Global Industry Analysts Number of tutors being hired up 18% --NY Times US Test Prep Tutoring Revenue and supplemental education tutoring services is projected to be between $10-$12 Billion--Global Industry Analysts 6% of revenue currently attributable to Online Tutoring in US market--Asia Times

4 In Home Tutoring Margins

5 Online Tutoring Margins

6 Cloud Based Tutoring Margins

7 So…What are some actionable and impactful steps to take given your business model?
1. Determine your current and past margins 2. Figure out your specific competencies 3. Shift frames to a cost-per-lead or cost-per-enrollment 4. If you have not, consider your offerings as a stock portfolio 5. 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.

8 Thank you from Test Prep Professionals!
Q & A

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