The Tuition Gap Remains (a problem)

NAIS just sent an e-Bulletin with the "Factoid of the Month" being a $4,812 gap between day school net tuition income per student and the average expense per student (net tuition income is essentially collections minus financial aid, or the actual cash that was brought in per student).  The gap is $11,781 for boarding schools.

The positive spin on this is that our schools provide a substantial subsidy to every student by generating about a quarter of their revenue from non-tuition means, thereby suppressing tuition below cost in nearly every case.  The problem, of course, is that this is a completely unsustainable business model.  We are still in the position of selling what is, in essence, a retail product at a considerable loss.  

Universities do something similar, except they have more ways of supplementing income.  Independent schools have few levers at their disposal.  If the goal really is sustainability, then we have got to become more strategic about pricing. (As an aside, see this excellent free e-book from Todd Sattersten on pricing.)  Set price equal to cost and generate surplus via fund-raising.  Stop assuming that someone else should pay, except for those who do qualify for financial aid.