What does the GMAT Prep Market Look Like?

So I finally took the time to do some research on the GMAT Prep Marketplace. In management consulting, this is called “competitive analysis” or “competitor benchmarking.”

GMAT Prep Course Key Takeaways

What should you take away from this chart?

1) GMAT Pill is significantly the lowest price GMAT Prep product out there. The other closest ones are just components of a bigger package (usually around $1,400 range) or they are Online products. “Online?” Funny, they are just video captures of classroom teachings that occur at specified 2-3 hr time slots (ie 8pm-10pm). Our “On-Demand” product is much more flexible. You study at your own pace, 24/7, skip around, take your own bathroom breaks, etc.

2) GMAT Pill has the fewest hours of instruction. Does MORE hours of instruction necessarily equate to better prep material and better score? Absolutely not. While we have the fewest hours of instruction material, the quality of the material and the focus on thought process is what impacts your score the most. We don’t want to waste your time studying. You need to study FAST and EFFICIENTLY with a good thought process.

As you can see, there are several large players out there charging ~$1,500 range. When I look at where GMATPill is priced ($327) I am just blown away. Why are we priced so low when we can raise the price to where competitors are pricing?

I guess the simple answer for now is that price needs to be sacrificed in order to gain visibility. If I were to delve further into details, our cost structure is significantly less since we don’t need physical teaching space, we don’t need to hire teachers and train them which costs a LOT. There is only ONE teacher so the costs are much less.

Is the product quality different? Yes, definitely, the testimonials speak for themselves. In addition to the teaching (it’s “faster and more efficient”), it is also more accessible with on-demand video which is a huge plus since most test takers are busy professionals. This is way better than what our competitors call “Online” because those are just video tapes of the classroom. Classes are scheduled at certain times, you don’t jump around efficiently with the video. If you go to the bathroom you can’t pause the video. A lot of time wasted, doing well on the GMAT is about being efficiently smart.

GMAT OnDemand Videos

Our On-Demand videos let you focus your time to get effective studying done. If you have a lunch hour at work, you can fit this in. If you start studying then need to go watch the World Cup or go to the bathroom, you can still do that. In the end, it’s your thought process that we aim to nurture. Think like a top GMAT Test Taker and you will become one.

Related GMAT Prep Resources:

• GMAT Test Dates
• This Student Loves GMAT Pill After Taking Private Tutoring and Prep Courses
• Retaking the GMAT – is it worth it? From 690 to 760
• GMAT Psychology and Timing Strategies
• GMATPill Student’s $179 investment yields $50,000

Digg

Stumble Upon

Del.icio.us

Buzz