Women Control Family Budgets and They Are Nervous: A Lesson for IECs
by Mark Sklarow, Executive Director, Independent Educational Consultants Association
On the radio today I heard a report that women are overwhelmingly the chief financial officers of their household. In that role, women are increasingly worried about household debt and savings. These findings mirror the message I brought to members of the Independent Educational Consultants Association at the beginning of the recession.
I noted at the time that the recession meant that times would be tougher for independent educational consultants (IECs), but clever planning and some small changes could help members to thrive despite the downturn. Now as the rough economy doggedly holds on and new research shows these dual concerns of family debt and savings, my advice remains even more important.
During tough economies, families are hesitant to spend money on items they view as non-necessities, and this includes many services. They will pay, but more than ever need to have demonstrated to them that the service is both valuable and financially sound. For IECs this means (1) demonstrating the benefits—not just the services provided—of hiring an IEC; and (2) helping families to see the financial savings that come from working with someone who can improve the odds of a great placement (and likely avoid the expense and loss of credit hours from having to transfer from a college that wasn’t a good match), and in many cases who understand financial options.
Moreover, in recessionary times families feel better about spending if they can avoid either dipping into savings or going into debt. As many consultants have discovered, this means more families hesitate before writing a $4,000 check which likely requires a transfer of funds from savings, a CD, or worse—charging a one-time fee of $4,000 that a family knows will accrue interest.
What I have urged IECA members to do is restructure their fees in ways that allow families to pay in smaller amounts, spread out over the length of the contract. Ideally, such actions allow more families to pay out of their checkbook and avoid the two causes of anxiety outlined above. For some IECs this means authorization to charge credit cards, perhaps every other month, with smaller charges; or dividing check payments into four or five smaller amounts, payable over a year. More paperwork? To be sure. But worth it to keep a business thriving in these anxious times.
Related posts:
- National Poll Confirms Family Confusion Over College Finances
- Nearly 100 Presenters will Examine Hot Topics in College Admission, Boarding Schools, Special Purpose Programs & Independent Educational Consulting
- The Economy is Rebounding; is Consulting Poised for Improvement?
- Why Most Colleges Encourage Outreach to IECs
- IECA’s Education Manager Will Usher in New Offerings, Commitment to Ongoing Learning for IECs
Permalink
| 
Consulting Business,Economy and Consultants,Financial Aid,Finding the Right Fit,IECA member consultants,independent educational consultants,Marketing,parents | 
Tagged: changes in consulting practices, consumer confidence, economy, educational consulting, Financial Aid, Finding the Right Fit, IECA members, recession
Great information Mark. Like all small businesses, IEC’s must change with the times, and these words of advice will help us all. Thanks, as always, for looking out for IECA members, and for constantly helping us help others.
Thanks Bar… and some good advice to families. If you need the help of an independent educational consultant to find the best place for your student bound for school, college or a therapeutic environment, and the fee is all that is stopping you, find out if the consultant can extend payments to assist you in other ways.