Fresh off a month on the road across the UK and Canada — a whirlwind 6,800-kilometre tour packed with conversations — followed by a quick stop at The PIE Live Asia-Pacific on the Gold Coast, sector analyst Edified says one theme dominated almost every discussion: turmoil.
Across meetings with 47 senior university decision-makers — from CFOs to pro-vice-chancellors and department heads — and dozens more specialists at conferences and campus visits, a clear picture emerged. Disruption is everywhere. The tsunami of AI, unpredictable market behaviour, tightening budgets, volatile student mobility, and almost weekly policy reversals from the US are consuming the headspace of higher education leaders.
And yet, despite all that noise, Edified argues that universities may be overlooking one of the biggest areas they can control: tuition fees and scholarships.
Taking Back the Reins
Amid the external chaos, there are opportunities universities can influence directly — opportunities with real underlying potential to offset the costs of constantly reacting to global shocks. According to Edified, the biggest untapped advantage lies in fee-setting and scholarship design.
Fees and scholarships for international students are entirely within an institution’s control. Market forces shape what students will pay, but understanding those forces scientifically is what allows universities to regain strategic control.
Right now, many institutions still rely on backward-looking data, basic competitor comparisons and, frankly, guesswork. In any other multibillion-dollar industry, that simply wouldn’t fly.
Forget the Rearview Mirror
Even institutions with strong market insights teams often base their analysis on historical data, not on scientifically modelling true willingness to pay. As Edified notes, the past is no longer a reliable guide.
A forward-looking, evidence-driven approach can answer the big questions institutions are wrestling with, including:
- What happens to demand if general discounts become targeted, merit-based scholarships?
- Which courses belong in the CBD campus, not the regional one, if revenue optimisation is the goal?
- Does the current price point match the institution’s reputation for teaching quality?
- Are Indian students really as price-sensitive as agents insist — and how would demand shift if ranking rises alongside price?
- And the big one: Are we leaving money on the table that could be reinvested into student experience?
Guesswork Isn’t Cutting It
To regain control, Edified says universities must move from intuition to insight — from retrospective analysis to evidence-based modelling. Four practical tips stand out:
- Survey prospective students, not just current ones.
- Price for attraction and retention, not just first-semester uptake.
- Use research methods that force students to make real-world trade-offs, not simple “what do you like?” lists.
- Be prepared to advocate internally for more rigorous methodology — a cultural shift as much as a strategic one.
“It’s not about abandoning academic values,” Edified notes. “It’s about being smarter, fairer and more resilient in how we fund and grow our institutions.”
A Scientific Approach to Pricing
Edified has developed a choice-modelling methodology, led by economists Dr Len Coote and Dr Edward Wei, adapting techniques long used in other industries. The research scientifically measures willingness to pay, price elasticity by discipline, and future demand scenarios.
The approach has already helped one Group of Eight university save millions by shifting from general discounts to merit-based scholarships. Another institution used it to optimise course offerings at a new CBD campus — and to confirm the real market value of its paid internship program.
Some findings reinforced assumptions; many did not. Price sensitivity varied dramatically across countries and courses. And in one surprising insight, students were willing to pay more for CV and résumé workshops than for career fairs or alumni introductions — not because the latter have no value, but because the former more strongly drives perceived return on investment.
A Safer Journey Through Turbulence
After four years of development and implementation, the evidence is clear: universities can make more confident, data-driven pricing decisions that strengthen both revenue and reputation.
In a world of rising costs, intensifying competition and shifting demographics, pricing strategy is no longer simply a finance question — it is a strategic imperative. The sectors that thrive in volatility are the ones mastering demand-based pricing.
By embracing a demand-driven, evidence-based approach, universities can:
- grow revenue sustainably
- improve enrolment yield
- allocate scholarships more equitably
- protect brand value in a turbulent market
For higher education, it may finally be time to catch up.
Sharyn Martin is a Senior Partner at Edified – consultants dedicated exclusively to the business of education. Sharyn can be contacted via email.
