How to Raise Tuition without Raising Eyebrows
Your school is crushing it. Your curriculum, teachers, and playground are all top-notch. And you picked the business of early childhood education for all the right reasons: making a difference in the lives of children and families.
Planning for a modest, annual tuition increase can be very easy on paper and quite different when it comes time to implement. Media coverage of the high cost of quality childcare is no help, but with a little planning and commitment, you can do what’s right for your business and for your families.
Give plenty of notice.
Raising tuition will impact family budgets and doing it without notice will almost never go well. Plan to send a letter home with your new tuition schedule attached at least three months before the changes will go into effect.
Add an extra.
Sending home your new schedule of tuition rates is the perfect time to announce new features you’ve added to your school. When you add features like WatchMeGrow streaming video, paperless daily reports, or an indoor playspace, this is the perfect time to tell families.
Explain to your families what modest tuition increases will do for the school and how it will benefit their family. Share that it will support increases in teacher salaries, improvements or additions to the building, and materials for the classrooms. Your families share a common goal at your school and when you tell them your plans for growth and improvement of a place where their children spend a majority of their time, they’ll share in your goals too.
Do it like clockwork.
If you wait several years to change rates, it will surely come with sticker shock and could result in a sticky situation. Plan to raise rates at the same time each year and don’t skip a year. It’s a fair way to set expectations with your customers and to plan for the health and growth of your business.