How to Increase Your Tuition Rates
Are you happy with your Business Income? Can you use a rate increase? Has it been over two years since you have raised your rates? Not sure how to go about changing your rates?
If you answered yes to at least 2 of the above questions, it’s probably time for a rate increase!
Many child care providers are afraid to increase their rates because they are concerned that families may leave their program and go to another daycare.
Tip:Before changing your rates, check the rates at surrounding daycare’s. You don’t want to be known as the over priced child care program.
Today I am going to show you how to increase your Business profits and increase your Business Income:
Consider increasing your rates by only $5.00 a week. If you have 10 children this could be a monthly increase of $200 a month. However if you have 100 children, this is a $2,000 a month increase!
Once you make your decision to increase your rates, give parents a 30 day notice to allow time for budget adjustments. The average family will not be affected by a $5 a week increase. In fact, if they love your daycare, they will not have a problem with paying a little bit more per week.
Here is a sample letter: (feel free to copy and paste)
This notice is being sent home to inform you of an upcoming rate increase. Our rates will be increasing to $_______ a week beginning on _____________.
Rate increases assure that we are able to buy new items for the program and to be sure that we provide a Quality Program for young children.
If you should have any questions about this notice, please see _____________.
Thanks for Choosing ( Your facility Name)!
For more Tuition Tips, be sure to Check out my 5-Day Tuition Policy Makeover eCourse!
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