"Mitch Daniels, America’s most innovative university president, tells how he’s kept tuition from rising and how acquiring Kaplan University will expand educational access.
...Mr. Daniels kicks off our conversation with a morality tale: “I’ll speak to an audience of businesspeople and say: Here’s the racket that you should have gone into. You’re selling something, a college diploma, that’s deemed a necessity. And you have total pricing power.”
Better than that: “When you raise your prices, you not only don’t lose customers, you may actually attract new ones.”
For lack of objective measures, “people associate the sticker price with quality: ‘If school A costs more than B, I guess it’s a better school.’ ”
A third-party payer, the government, funds it all, so that “the customer—that is, the student and the family—feels insulated against the cost.
A perfect formula for complacency.”
The parallels with health care, he observes, are “smack on.”...
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