Presentation on theme: "KEVIN ORGANISCIAK TEST PREP PROFESSIONALS Test Prep Trends."— Presentation transcript:
KEVIN ORGANISCIAK TEST PREP PROFESSIONALS KEVIN@TESTPREPPROFESSIONALS.COM WWW.TESTPREPROFESSIONALS.COM Test Prep Trends
Test Prep Time Line 1930s 1970s 1980s 1990s 2000 20102012 2014 Kaplan Acquired by Washington Post Kaplan segments market, uses Commodity pricing strategy Stanley H. Kaplan begins tutoring in his Brooklyn Basement The Princeton Review Revolution Prep Kaplan Acquires MGMAT Kaplan migrates click and mortar to LiveOnline, begins to divest in Physical locations, eliminates Marketing Managers in favor of campus reps Kumon TPR Acquires MCAT Hyper learning TPR goes public Testmasters TX Testmasters CA Kaplan Higher Score Guarantee Sylvan Huntington Learning Club Z tutoring Manhattan GMAT TPR Brand sold to Charlesbank Partners
The Test Prep and Tutoring Environment 22% of US parents with children 11-16 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
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.