Cost Analysis

For admissions
Example of a Counselor
Sr Incentive Amount
Date Admission Mode Fees Discount Collected No
1 PGDM Lump sum 60000 5000 55000
1 Powerplay 1 3000
4 PGDM Instalment 60000 0 22000
2 Powerplay 2 5000
5 PGDM Installment 60000 0 22000
3 Statergic time outNo 6 5000

4 Statergic time out 2 4000

7 PGDM Lump sum 60000 5000 55000
5 Incentive Lump sum 30000
10 PGDM Lump sum 60000 5000 55000
6 Incentive Instalment 10000

Total 57000
12 PGDM Installment 60000 0 22000
TL (1st slab) 6000
14 PGDM Lump sum 60000 5000 55000
TM(1st slab) 3000

SM 2000
16 PGDM Lump sum 60000 5000 55000
DM 450
19 PGDM Installment 60000 0 22000
Head MKT 500
23 PGDM Instalment 60000 0 22000
Total 11950
Total 25000 385000
TOTAL Incentive 68950
Continued

• Total Collected Amount is 291050

• Total incentive for 10 Admission is 68950 (18% of collection)
• Total discount give is 25000
• Total cost for 10 admission(incentive + discount ) is 93950
• Amount to be recover in next 6 months is 2,20,000
• Expected loss in recovery is 44000
• After 6 month for 10 admissions we get 291050+176000=4,67,050
• Per PGDM admission revenue is 46705/-
 Other per admission cost
Jun Admission 530
Jun spend 6897570 • Cost is based on Jun 2022 data
jun salary sales 3250639 • As per last slide Per PGDM admission,
Jun NGUCC 20000
revenue is 46705/-
Jun Extraedge 495600 • Less other marketing cost 22859.33
Bulkmail/sms 80000 • Balance revenue 23845.67
shared internet 56050 • From Which we need to deduct
shared phone 45441 student lifecycle cost that includes
Books, CANVAS ,SIS, Student support
Electricity 85000
and admin cost.(Books, Canvas and SIS
Rent 847894 costs approx. 10000 per student)
LSC 278250

True Caller 59000

Total 12115444

Per admission cost 22859.33

Suggested actions
• Stop offering Installment
• If it is not possible
• We should ask for PDC,PAN and Aadhaar for installments.
• We should convince the student to go with NBFC EMI for remaining amount.
• By changing slabs for incentive on Instalment admission and by introducing new
attractive slabs for EMI admissions, we can motivate counsellors to do more
admission with EMI.
• We should offer special incentives for converting the balance due amount to EMI.
(this will be applicable to sales and post sales both)
Start using NBFC EMIs
• Our sales team should focus more on EMI admission.
• EMI option is win win situation for the student and institute.
• Subvention charges are comparatively less than recovery expenses and
bad debts.
• We should go for the pool of NBFCs for faster service.
• Converting a lead to admission will be more easy for sales team as
student has to pay very less amount compared to Installment payment.
(for PGDM student has to pay 22000 for 1st Installment at the time of
admission and in EMI option student needs to pay approx. 5775/-)
Redesign incentive policy
• Current incentive policy is has many loopholes and it is very hard to
calculate incentives by using this.
• We should simplify the policy
• We must remove provisions that gave double benefit to counsellors(like
power play 1 and 2, where power play 1 is 1 to 6 and power play 2 is 1 to
10.if a counsellor done 3 admissions in first five days, we will get
benefited of both the power plays. It should be PP1 1 to 6 and PP2 7 to
10)
• Benefits to TL,TM,SM and others should be reasonable, there must be
link between efforts and incentives.
TL/TMs performance
• It is observed that TL/TMs are not performing as they were performing
in past(when they were counsellors).They should focus on their own
performance while leading and motivating team.
• Special leadership development programs should be conducted for
these people.
Role of SMs
• From last two three years no new leadership emerged except 2 SMs.
• Current SMs are focusing more on individual performance, they should
focus more on team development and new leadership development.
• Sales team should focus on Quality rather than Quantity.
• We must increase our lead sources, Cold calling data should be
procured.
• Our sales team is focusing more on quick admissions, “lead nurturing”
is missing in our case.
• Regular trainings should be arranged.
• Use of IVR should be increased over personal mobile call.
• Thank You