Deakin going for market share

From the Budget Papers:

For students enrolled on or before 13 May 2014, existing arrangements will be grandfathered and remain in place until the end of 2020.

Current students are not affected by the Budget measures (are they really budget measures and should they have been included in the budget?) announced last week. So imagine my surprise when I saw this headline in the Australian.

Deakin to wear fee hike pain for students

Sounds a bit strange – exams start soon and the current cohort of students would have enrolled before the census date (end March).

What is happening is that Deakin is capitalising on student anger (and ignorance) to grab some market share – effectively by dropping prices for students starting next semester.

Deakin is more exposed to the timing of the changes than other universities as it operates on trimesters and the budget was announced in the middle of enrolments for its second trimester. Its decision means that come 2016, the university won’t charge higher deregulated fees for any of the 2014 cohort even though the government will be cutting per student funding by 20 per cent.

So Deakin has started enrollments for next semester – the cohort that the government fully intends to be impacted by the university reforms come 2016 – and Deakin has responded by freezing its current fees for that group.

Surely this is precisely the outcome the government wanted – universities taking control of their own pricing decisions and making decisions that best suit their own interests and that of their students.

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17 Responses to Deakin going for market share

  1. Token

    What happens if this is based upon incorrect pricing?

    Will Deakin suffer the consequences, or will we have another example of socialism ensuring the cronies don’t bare the pain of their own decisions?

  2. Dr.Sir Fred Lenin

    For deakin uni read Geelong Tech.its one of those hawkw keating “universities” .the Techs they funded to “cure” youth unemployment of 35 per cent.Tech teachers promoted beyond qualifications.in the real alp way.

  3. What happens if this is based upon incorrect pricing?

    Will Deakin suffer the consequences, or will we have another example of socialism ensuring the cronies don’t bare the pain of their own decisions?

    I thought that too. What if the price goes DOWN, and Deakin is left like the mortgage holder who decided on a fixed interest rate of 8% just before the GFC?

  4. Notafan

    A third rate journalism degree will still be a third rate journalism degree.

  5. MemoryVault

    A third rate journalism degree will still be a third rate journalism degree.

    Is there any other kind of journalism degree these days?

  6. .

    I’ve seen smaller unis both at the same time, grab the chance to charge higher fees then lament the high fees…they really want to be on the big juicy tits that ANU is sucking out of the Feds.

  7. Notafan

    MV, quite so.
    Though if Enter scores are any indication, the Deakin one, as valued by students, is in the sludge at the bottom of the leftie cess pit.

  8. Token

    Is there anyone in the Business School who can tell them what the consequences of flagging to the market an organisation is competing on price instead of quality?

    I’m sure they believe that as they are in a swinging electorate they can demand more public funds when the consequence of placing themselves in that segment of the market comes to fruitition.

    Though if Enter scores are any indication, the Deakin one, as valued by students…

    It has not change in 20 years, sounds like they’ve given all pretense of quality.

  9. James

    Is there anyone in the Business School who can tell them what the consequences of flagging to the market an organisation is competing on price instead of quality?

    A Business School ranks up there with the pointlessness of a Gender Studies or Sociology Department which do nothing but turn people out who not very useful at anything.

    So I’m sure there’s one.

    Close it down. Fire them all.

  10. stackja

    Deakin University
    From Wikipedia
    http://en.wikipedia.org/wiki/Deakin_University
    Deakin University’s first campus was established at Waurn Ponds. The University was the result of a merger between State College of Victoria, Geelong (formerly Geelong Teachers College) and the Gordon Institute of Technology (now the Gordon Institute of TAFE). Deakin enrolled its first students at Waurn Ponds in 1977.

    Is Deakin University really a University? Or a glorified TAFE?

  11. Notafan

    Burwood campus is ex teachers college

  12. Ubique

    Entry standards for many courses at Edith Cowan (ex-WACAE) are for an ATAR of 55. I think at one stage the entry standard for a nursing degree was below 50.

  13. H B Bear

    All this will do is show that guaranteed Federal funding was producing an excess supply of student places – exactly the same result that a regulated return on capital does for the poles and wires business in electricity. The state should get out of tertiary education sector completely.

  14. nerblnob

    For deakin uni read Geelong Tech.its one of those hawkw keating “universities

    Deakin was established as a uni before Hawke and before the trend for calling every tech institute a uni really got going.

    I’ve never employed anyone from a business school so I can’t tell you if they’re any good or not. I suspect such schools are for the benefit of corporate HR types who can’t judge people so use credentials as a guide.

  15. sabrina

    As I see from their website, Deakin School of Economics, Finance and Accounting has two professors who publish in journals in a prolific manner, with multiple authors.

    On a related note, what are RMIT and Swinburne doing to retain market share? Both were techical institutes not so long ago.

  16. TonyOrlando

    universities taking control of their own pricing decisions and making decisions that best suit their own interests and that of their students.

    Decisions that best suit their own interests yes, but not that of their students.
    Universities in general are rapacious monsters that delight in creating as many feather beds and sinecures as they can. Students are already funding far more than the *actual* cost of their degree in terms of what it costs to actually train them.
    The budget decisions are just going to make this problem worse, because students won’t really be that sensitive to price since it all goes on the never never, the major universities will jack their fees up and send the bill to the government to adding to ballooning HECS debt. This means down the track a greater % of students wont be able to clear their HECS loan and the rest will be paying off for much longer.

    What looks like a measure to save money will merely result in a higher government debt (albeit a debt hidden somewhat) and higher taxes (albeit disguised as HECS repayments) in the future.

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