Pricing of e-learning products

John Mitchell from John Mitchell & Associates undertook a consultancy for a large technical and further education (TAFE) system to determine a a number of scenarios for the pricing of commercial online courses.

The study considered two different scenarios: uniform pricing for mass markets and relationship marketing for niche markets.

The project brief required a report that:

  • Briefly outlined the international, Australian and NSW market for online training in terms of providers and prices primarily.
  • Indicated the potential of the organisation to offer commercial (fee-for-service) and combined commercial / mainstream offerings to corporate and individual customers.
  • Provided a number of models for pricing online courses in various market segments.
  • Recommended pricing models under different scenarios.
  • Included an analysis of factors such as trainer support (via phone, email, chatroom etc), learning resources, annual registration, assessment media (mail, online etc) and other scenarios, models and recommendations.
  • Suggested a process for agreement on a recommended strategy.