Inspirational and Empowering Child Care Business Owners To Build Successful Child Care Businesses

Posts tagged ‘tuition policies’

How to Increase Your Tuition Rates

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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)

Dear Parents,

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)!

Your Name

For more Tuition Tips, be sure to Check out my 5-Day Tuition Policy Makeover eCourse!

Shiketa

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How to Get Parents to Comply With Your Policies

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Getting parents to follow my rules was not always easy for me. In fact, when I first opened my Child Care Business, parents were my #1 Challenge. Not any more!

Furthermore, I have discovered how to build a healthy relationship with my parents  and I also believe that you can to!

Moreover, I believe that parents will have respect for your rules when you do the following:

1. Upon enrollment, you must take some time to go over your program policies with your parents and issue a Parent handbook. Do not trust that parents will read the entire handbook, so be sure to discuss the policies  that will affect parents on a weekly basis such as: tuition, sick policy, etc.

2. Post very important reminders where parents can see them daily and update posted signs regularly.

3. Be courteous and Polite when you are in a position where a parent is trying to challenge your policy. For example. I had a parent to ask me to apply skin cream on her child. I told her that my policy stated that parents must provide a Doctor statement or a prescription for skin cream. She tried to debate the policy, however, I told her, if she gets a statement or a prescription from her child’s Doctor; I would apply the skin cream. She said, OK! Mrs. Morgan.

Be consistent, flexible when you can, and Be professional. Parents will follow your rules, if they know that you are serious about them too. After all, you made your rules for a reason, so enforce them.

I have also discovered that some parents may not respect your rules at all and this is when you must make a decision to deal with that parent or not.

Much Success to you!

Shiketa Morgan

You may also like the 5-Day Tuition Policy Makeover eCourse

 

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