FALL STRATEGY II
With the confluence of ACT, PSAT, and SAT test dates in October, combined with the fact that SAT Subject Tests are offered, and with impending changes to both the ACT and the SAT scheduled in the near future, test prep & tutoring concerns should be averaging about 15-25% more in gross revenue vs. prior year. That is, unless this increase demand has been better anticipated by others.
Unfortunately, when the circumstances I have mentioned align, hyper-competition can ensue. Bigger companies diversify offerings to take advantage of heretofore un-leveraged products...think SAT regular, SAT short course, and something like: SAT 1600 (and then multiply x2 to add online companion products). Fast followers will match the bigger concerns--not so much with inspired strategy but with duplicate market messaging and hastily prepared product extensions. And let's not forget that Khan Academy has begun "democratizing" test prep.
So the largest two or three companies combined with whatever large regional player exists in your geography will likely fight it out for the surplus share resulting this Fall. As a result, even with an increased in total share available, it may be difficult for small or medium sized companies to carve out the revenue increases mentioned above.
Many folks will be satisfied with increases vs. last year and, lets face it, most are so inundated at the moment, that gauging relative improvement vs. potential improvement will fall low on the list of things to do. The good news is? Performance can be measured in hindsight. The better news is that there is still a great opportunity more fully leverage opportunity without getting too far afield from delivering one's service.
Here are some tips for this particular Fall:
1. Know your strengths and define what you are good at and stay committed to those ideals BUT keep an open mind about diversifying products to match dynamic demand.
2. Know your competition's strengths - visit web pages, view product lines. This is just good business.
3. Determine how to best leverage your product mix, pricing strategy, people, and promotional efforts and frequently ask yourself if you are doing so.
4. Examine your lead - funnel ( this will help you empirically assess demand ). You may be able to benefit by ramping up high yield, low time-involved activities over the next four weeks. If you have not, add a "chat feature" to your website, every inquiry is a potential client (we use OLARK...its free).
5. Remember that consumer needs are extremely dynamic --particularly as the test dates draw nearer. For example, two weeks prior to a test date is an ideal time for short courses, or small group single-subject tutoring (Math is pretty popular) etc. Updating a Facebook page, email list, and current clients with a highly specialized product that matches consumer needs, costs very little and can teach one quite a bit about product diversification.
I kept things short because I know most folks reading this are probably tutoring from morning to night at this point in the cycle. Feel free to visit our call to learn more about what has been written here. www.testprepprofessionals.com.
Warm regards,
Kevin
617.285.4036
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