Dealing with Tough Times

2 zThe Learning Resources Network (LERN) is the leading association in lifelong learning, offering information and consulting to providers of lifelong learning. zLERN provides “Information That Works”

Founded in ,000 Members 1,800 Organizational Members 18 Countries Led by a Board of Directors Self sufficient – receives no grants, funds or outside income 3

4 Programs in three places Successful Holding their own In trouble

Up 40% Down 26% About The Same 34% Fall 2007 Registration Survey

Impact on programming zCommunity programs hurt this fall zProfessional continuing ed programs doing better

Registrations in Community Ed zUp, around 30% of programs zDown, around 30% of programs zAbout the Same, around 40% of programs zIn 2008, more programs decline in enrollments zSome programs down by as much as 30% of enrollments 7

8 Challenges Facing Community Programs zI. Promotion zII. Choosing courses zIII. Cutting costs zIV. Talking to the Superintendent and central administration  $

The Answers 1. No big cuts in promotion 2. Renegotiate teacher pay 3. Boost prices 4. Focus on profitable programs 5. Only do critical activities 6. Talk more to central administration 9

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I. No big cuts in Promotion A. Do NOT drop brochure or cut back substantially. Keep high quality brochure. B. Get carrier route analysis from LERN. Saturate with household mailings your top carrier routes, trimming brochures by about 20-25% C. Mail twice to each past participant 11

More Promotion “To Do” D. Mail first brochure out 5-7 weeks before start of session. Mail second brochure to past participants 1-2 weeks later. E. class participants in courses that will be cancelled days before class starts/cancels and ask them to recruit people. 12

13 past participants twice each session.

2. Renegotiate teacher pay zAsk them to teach even with a few people. zLower pay. Offer percentage for big classes. zLower your minimums needed. zOffer participants in cancelled classes more options to get them in other classes. 14

Cut teacher costs zDon’t run classes that lose money. zNegotiate with instructors individually if classes have low attendance to teach for less money. zOnly accept new teachers who will teach for what you can afford. zStay legal, but suspend the “rules” of teacher pay. zIf your program dies, they get zip/nada/0 15

Cutting Costs zEstimate income first. zThen make costs break even. zTrim promotion only by doing selected carrier routes, trim by only 20%. zCut instructor costs. zFigure out how to run courses with fewer people by getting instructors to charge less. 16 $$ $

3. Boost Prices zDo not just raise fees for all classes. This is the Wrong Way. zIf you price based on hour, redo prices based on what audience will pay. zRaise prices to just under price breaks. zIf a class is sold out or has a waiting list, really boost price over the next price break. Example: $45 move to $75. zCreate new classes at higher prices. 17

18 Listing Your Prices zDo not put decimals and zeros after the price. Never: $45.00 Yes: $45 zAvoid round numbers. No! $60 zUse 5s and 9s. Examples: $59, $85 zDon’t highlight, and don’t hide, your price.

19 Price Breaks for Community Programs zA “price break” is the point at which a person says the price is too high. z$50 z $100 z $150

How to raise your prices zIf there is a waiting list, boost it $20-$50, o.k. to go over a price break. zIf enrollments are low, boost it just under the next price break ($50 or $100) zIf enrollments are o.k., boost it one digit, $5 - $10. Don’t go over price break. 20

21 Clustered & Diversified Pricing Clustered Pricing Diversified Pricing zIt is better to diversify and not cluster your prices because a spread in prices markets to different audiences.

Offer more higher priced courses zSome 50% - 60% of your classes below $50 zSome 25% -30% of your classes between $59 and $99. zSome 15% - 20% of your classes between $119 and $149. Offer more new classes in this price range. 22

4. Focus on profitable courses and events 23

24 Generational Marketing in full swing

Best Markets for Community Education zKids, youth, especially summer programs zBaby Boomers, age 45-62, with higher priced avocational courses zGen X women, mothers of kids, families zSeniors, ONLY if you are making money 25

Revise your product mix (course offerings) zCut the losers zOffer more new courses in those Divisions that have low cancellation rate and high operating margin zOffer more budget oriented classes. zOffer more high priced new courses. zDo more with kids classes and Boomer classes (and charge higher prices). 26

27 Cut Wasted staff time 5. Only do critical activities

Make staff more productive zFocus on new courses and marketing zStop doing ‘nice’ activities. Stop baking cookies. Only do critical functions. zWork from home. Boost productivity by 25%. zAsk you and your staff for outcomes, not activities. E.g. 50 courses; distribute 50,000 brochures. 50% operating margin. 28

6. Talk more to your superintendent and central administration 29

30 Do not panic. Talk positively. Talk long term. Talk big picture.

What to do zGive monthly updates. Say what you are doing to cut costs and boost income. zTalk about how community ed boosts votes by 20 points for referendums. zLook at your financial history over 10 years. Every business loses money in 2 of 10 years. 31

What To Do - More zTalk in terms of numbers. zForward testimonials. zGet 2-5 business leaders on your side. zTalk about your contribution to economic of community, health, quality of life, workforce quality. 32

33 You Will Make it

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