Entrance exam preparation is costly and not exactly what I’d call fun. A company that launched on Monday called Grockit is dropping costs and making the process a bit easier to get through.

Grockit was started by Farbood Nivi, who has been teaching exam preparation since 1998. He worked for Kaplan and was Teacher of the Year for The Princeton Review in 2002. Just a few months ago he decided to start his own prep school where students can attend WebEX classes.

Grockit is significantly cheaper than the major review schools but Nivi says his profit margin is bigger.

“The other guys tend to be enormously bloated as far as companies go,” Nivi said via IM on Thursday. “They have very inefficient operations. They spend $1.5 million to generate $1.4 million. The virtual world is cheaper and more pervasive.”