Time to Double-Down on the Value Proposition

Sobering news in McKinsey's latest Consumer Economic Sentiment survey: Americans perceive the economy getting better, but are cautiously frugal nonetheless.

"The way Americans feel about their own finances and the US economy is nowhere near as dismal as it was during the 2008–12 recession. The bad news is that, while things aren’t getting worse, they’re not getting much better either. Consumer morale, although stable, remains stubbornly low."

Perhaps most revealing for private, independent education is the following:

"Throughout the recession consumers saved money on grocery and household products by trading down to less expensive brands, often private-label or store brands. That trend continues today, though trade-down rates in most food, beverage, and household-product categories have stabilized at a lower rate than they were at four years ago. Still, consumers are not returning to higher-priced options. Nearly three-quarters say they do not intend to go back to purchasing more expensive brands. For one-third of Americans, this is because they no longer prefer the more expensive brand, having realized that the cheaper product offers better value for the money than expected and is of higher-than-expected quality."

 Time for independent schools to double-down on making the value proposition clear to current and prospective families.