As promised, I am adding a feature to the Dollars and Sense category of the blog called Dollars and Sense Q&A! Kristin Yost has give a brief answer to this week’s question:
I know that I need to raise my rates. What is the best time to do this? Answered by Kristin Yost
Ah yes, the raising of the rates! First and foremost, I would make it clear in your studio policy that your rates are raised annually based on the national average, (last year is was 2-3%) and the new tuition takes effect June or July 1 of each year or when your studio calendar year begins.
I like to send out a personal note of accomplishments of myself as the teacher as well as what my students have achieved in the last year. This helps parents to understand the value of your service that you offer. You may also want to send your students a copy of the “Where Does My Tuition Go?” brochure that Wendy has provided so parents can be reminded of all the wonderful things their tuition covers.
If you have a business question you’d like to ask, email me (Wendy) and we’ll get your question answered in an upcoming post.