I’m a tech director for a public school district with about 250 students and 40 staff. Despite our limited funding, we’ve managed to keep up with technological advancements, including a 1:1 device initiative. However, the surge in edtech products since the pandemic, fueled by federal funding, has led to skyrocketing subscription costs, some tripling in price due to ‘new features’ we did not request. This forces us to drop valuable tools, adversely affecting both teaching and learning. It feels like vendors are disconnected from the financial realities of public schools. Are others experiencing these drastic price increases, and do vendors understand the budget constraints of educational institutions?
This is a classic case of enshitification—a trend where services get worse as prices climb, even though users didn’t ask for the changes causing the price hike.
We faced a similar issue last year. Despite early warnings to our Finance department and Board, our concerns went unheard.
The spike in costs might stem from shifts in the investment landscape post-COVID. Initially, edtech companies could attract investment by showcasing growth and a broad customer base during the pandemic. As the investment focus shifted towards profitability, these companies had to adjust their pricing strategies drastically to survive, leading to the price increases you’re noticing.
Alex said:
@Alex
In short, the underlying issue here is capitalism.
While it’s easy to blame capitalism, it also drives innovation and keeps companies competitive. The key issue in edtech is aligning business models with the financial realities of educational institutions, possibly through more governmental support or changes in funding structures.
We’ve experienced both pre and post-COVID price increases. Some vendors lock in prices for multiple years at high rates, making budget planning challenging.
Liam said:
We’ve experienced both pre and post-COVID price increases. Some vendors lock in prices for multiple years at high rates, making budget planning challenging.
It’s important to call out these practices. If more educational institutions share their experiences publicly, it could pressure companies to reconsider their pricing strategies.
We had to let go of certain tools like Screencastify due to unreasonable price increases. Even after explaining our budget constraints, the company seemed surprised when we did not renew.
MegWhitgal said:
We had to let go of certain tools like Screencastify due to unreasonable price increases. Even after explaining our budget constraints, the company seemed surprised when we did not renew.
Dropping Screencastify was easier once they pushed their prices beyond our budget’s reach.
As someone in edtech sales, I’ve seen firsthand how investment pressures push companies to increase prices. With the reduction in pandemic-related funds, schools are now forced to make tough choices on which tools they can afford.
The gap between what edtech companies charge and what schools can afford is widening, exacerbated by the lack of competition and innovation due to high entry barriers in the market.
Sam said:
The gap between what edtech companies charge and what schools can afford is widening, exacerbated by the lack of competition and innovation due to high entry barriers in the market.
The lack of competition is concerning. It seems like regulatory hurdles or high market entry costs could be stifling new entrants, keeping prices high.
For those looking for free resources, our company offers tools funded by various non-profit and governmental bodies. This model might be something more companies need to consider to keep edtech affordable.
It’s crucial to evaluate the effectiveness of each tool. Schools need to develop clear criteria for determining the value of edtech products to make informed decisions about which subscriptions to continue.
The transition to subscription models is driven by the need for continuous revenue to fund ongoing innovation and support. While frustrating, it reflects the economic pressures on edtech companies to deliver new features and maintain quality service.
Could you list the resources you are struggling to afford? Understanding specific cases might help in discussing alternatives or negotiating better terms.
Bright1 said:
Could you list the resources you are struggling to afford? Understanding specific cases might help in discussing alternatives or negotiating better terms.
We’ve seen significant price increases across the board, notably with platforms like NoRedInk and Flocabulary. Each has increased costs by over 200% in recent years, making them unsustainable for our budget.
@Hazel_Mae
The acquisition of companies like Nearpod and Flocabulary by larger entities often leads to price hikes as these new owners seek to recoup their investments.
@Hazel_Mae
I have contacts at these companies and might be able to help negotiate more favorable terms based on your specific needs.