The real estate education sector is experiencing a new form of price increase, dubbed ‘shrinkflation,’ where course offerings are being reduced without a corresponding price drop. This trend, typically seen in consumer goods, is now impacting how real estate schools package and price their prelicensing and exam review courses, potentially leaving students paying more for less comprehensive offerings.
The Rise of Shrinkflation in Education
Shrinkflation, a term commonly used to describe the practice of reducing product size while maintaining the same price, has now entered the real estate school business. This phenomenon is characterized by schools unbundling previously packaged courses, such as prelicensing and state exam review, and charging separately for them at a combined price that is effectively higher than the original package deal. This subtle price hike can go unnoticed by consumers who are accustomed to the previous pricing structure.
A Shift in Course Packaging
Demetree School of Real Estate highlights a significant shift in the industry. Historically, they offered prelicensing and state exam review classes as separate entities, allowing students to choose whether to enroll in the review course based on their confidence with the material. This approach respects students’ financial decisions, enabling them to pay only for the services they need. In contrast, a major competitor previously bundled these courses, requiring students to purchase both together. Recently, this competitor has decoupled these offerings, but instead of lowering the price for the individual prelicensing course, they have maintained the original bundled price. This means students now pay the same amount for just the prelicensing class as they previously did for both classes combined, representing a substantial, unannounced price increase.
Key Takeaways
- Unbundling without Price Reduction: A competitor has separated prelicensing and review courses but kept the original bundled price for the prelicensing course alone.
- Effective Price Increase: This strategy results in an approximate $200 price increase for students who only need the prelicensing material.
- Student Choice vs. Forced Bundling: Demetree School of Real Estate emphasizes offering choice and value, allowing students to opt out of review courses if they feel prepared.
- Commitment to Quality and Affordability: Demetree School of Real Estate aims to provide high-quality education at reasonable prices, contrasting with the perceived practices of competitors.
Navigating the Market
In this evolving landscape, students seeking real estate education are advised to carefully examine course structures and pricing. While cheaper options may exist, the value proposition of quality instruction and flexible purchasing options becomes crucial. Demetree School of Real Estate positions itself as a provider of superior education at an accessible price point, encouraging students to consider their offerings for a comprehensive and fair learning experience.