@eleeski A delicate balance indeed. I carry a bit of a passion for this, and here's why:
It was only until my final 2 years of my 6 year collegiate stint (mixed in a couple years of b-team to stretch it out) that I became a somewhat decent skier (could run my opener, get points tricking, and land jumps at fairly decent distances). If entry fees had been any more than they were, I likely wouldn't be in the sport today at all. Why would I have paid more than $25 to go suck at skiing in front of peers who don't suck at skiing?? The balance of entry fees, during that time, literally is what kept me going to tournaments until I was good enough (and addicted enough) to make it a priority in my budget. I would say over half of the skiers at the collegiate tournaments are new skiers, and thus, don't necessarily have skiing on their list of priorities. If you price those skiers out of tournaments, you won't actually be making more money at tournaments with higher entry fees if the volume of skiers goes down... and then you are back to shrinking the sport, and not growing it.
I really think that, as far as tournament costs go, a collegiate tournament should not be so much of a profit center to the host team as much as it should just be guaranteed not to lose money. Making money is what club/team fundraisers are for - sell shirts, food at tournaments, cups to a keg party, etc. All of which are optional items during a tournament weekend. But don't make it a required cost.
@BCM I can fully related to being given a $0 budget to work with from the school. At Auburn we tried to keep the up-front costs low, to encourage membership and keep money in the bank. We then spread out the costs of each tournament weekend to those who attended the tournament.