Q: Are the prices of our classes esp the Computer classes. They seem so high to me but maybe I have been out of this line of work for so long I have lost track of what things cost now. But I would like to have an outside source with your experience check it out. Thanks, if you have time to do this it would be great!

A: I reviewed the prices on computer courses similar to yours in other program's brochures. Some of yours are definitely on the high side, but not terribly out of line. Basic Windows and Microsoft software courses ranged from $95-$288. For classes that meet only three times, you might want to think about lowering your prices from $135 to $119 and testing to see if enrollments improve.Your prices for your Photoshop and CS5 courses are very reasonable. The course on Keyboard Typing seems out of line, and the cost would seem to be prohibitive unless it is definitely part of a professional skills/development class to create employment opportunities. Even then, the cost seems high. Of course, if you have good enrollments in that course, I would not change it.

One thing we are hearing from many of our members is that basic computer courses are not doing as well as in the past. Computer classes for older adults who may not have learned computer skills in school still draw good enrollments, but the prices for these are lower since the courses are avocational and not for job related purposes. Keep in mind that your prices need to reflect what the market will bear in your area. A price of $135 may be competitive, based on what is available in your community, or it may be out of line.

You should review what the competition is charging, and possibly even survey for price, and you might test different prices, as well to see if they have an impact on registration numbers. You can do a price survey by asking your participants whether they think the price you are charging ($135 is "a good value" or too high for the benefits received. A second question might ask what is the maximum you would be willing to pay for a course in X.

Your pricing needs to be set so that your course generates an operating margin of about 50% (40% minimum)--10% of income for promotion costs and 40% of income for production costs--primarily this is instructor compensation. If you are paying instructors more than 50% of your income, you should re-evaluate your compensation policies and work with instructors to bring their compensation down to not more than 50%