This question has been asked since SDN started. Back then, it was why do these companies charge nearly $1000 for a class. Those in-person classes had twelve to twenty students and offered as little as twelve 3-hour classes to as many as sixty two-hour classes for the price. They were all live and in person. Pretty much everyone studying for the MCAT took a class for fear that they were missing out on something. As pointed out above, there were no free videos as an alternative at that time. I would say that easily a third of the students in our class didn't need a course and would have done just as well without one. Attendance with a good teacher is around ninety percent and around fifty for a bad teacher. So there were people not attending and throwing money away. I've learned from friends teaching for other companies that it's pretty much the same everywhere.
So to answer your question, companies saw this and the corporate ones starting raising the prices and then offering discounts, a clever marketing strategy. To look like we weren't a scam, small companies raised our prices to match the corporate prices. This went back and forth until about $2000. There were a lot of $1995 classes for a few years. That's when corporate got really clever and started offering tiered classes, so their classes around $2500 didn't look so bad next to a $7000 class. Prices kept inching up and paranoid premeds kept paying it, thinking they were getting something. There was literally no difference between the $695 class from ten years earlier and the $2295 class. Online options were always priced lower, because they could stick so many people in them. We had never done an online class before COVID (refused to do them because they were not as effective and that went against our moral compass). But when COVID hit, we introduced an online class for $1500 that was a deal compared to the in-person class for $2095.
Then, craziest of all, when COVID refused to go away and everyone had to go completely online, people were paying in-person prices for online classes. Our $1500 class disappeared and morphed into a $2095 class. I must confess to being embarrassed that the company I love joined the rat race. If you go to the website you see six aerial views of cities where there is no classroom course any longer, given that all classes were all online, but it gives the illusion of specialized service. You could click on a link for the city you wanted, even though it was literally the same online class for everyone. It would have been one thing to at least have an online exclusively for one school, like a class for UCLA students, so that the topics could be catered to their needs (like compensating for the MCAT topics not covered in the Chem 14 series). But everyone from every school was placed into one big class. This is what EVERY MCAT company did, and consumers never complained.
It's insane what they cost nowadays, and how many students are smashed into one zoom class. I am befuddled that people pay it. Far fewer people take courses these days (compared to 2015), which was inevitable. It's a shame that Khan lectures are not aimed at the MCAT even though AAMC promotes it as such. It would be great to have a free service that was truly for MCAT prep. There are some MCAT-specific free videos out there, but you have to dig.
So here is the suggestion. DO NOT PAY FOR A CLASS! There is a very good chance you don't need it. There are several great youtube videos for the different topics. AK videos and Chad videos get lots of love here. Over the years, different people have posted links for various subjects, but no one single thread exists with all of the best links. The closest thing to it is
pinned here. I'd recommend you start hunting for videos and be extremely organized about what works and what doesn't. As a promotion a few years back, the founder of BR posted a great four part lecture on electrochemistry that everyone should watch. Find things like that. Unfortunately, because BR folded their course for good in December, there will be no more videos coming from BR. But there are people like John Wentzel who put good free content out.
SDN is the perfect site for a thread that lists the different videos. Here are links to the general chemistry videos I mentioned, which I hope is acceptable, given that they don't sell a course any longer. If this is in violation of the ToS agreement, please take it down and I am very sorry.
Part 1
Part 2
Part 3
Part 4