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.
Hey Wendy: I am looking over my piano policy from last year (getting ready to edit it in order to send it out to my families) and thinking about the issue of raising my rates a bit.You gave me courage last year at this time to do so. Why is it though, that I always have these feelings of ‘fear’ and ‘inadequacy’ hit me each time I have to make this decision?! I hate feeling this way, and that’s why I appreciate your articles of encouragement on this topic. I read and re-read them and begin to feel more empowered. Then I sit down, do the math, tell myself I’m worth it, and include the price adjustment into the policy. Thank you for confirming my value as a piano teacher; that the cost of living always increases yearly, and that I have a lot to offer my students. I appreciate your articles of encouragement and also the wonderful never-ending musical resources you offer us music teachers.♫ A big thanks to you!!
I’m just deciding to change my rates from a 30 min per lesson charge to a monthly charge. I’m really nervous about writing up a change of prices and the way I’m going to be going about make up lessons. It’s been so hard with snow days and skipped school days do with kids being sick and just not making lessons for such and such and such reasons. I’m just getting very frustrated and losing money constantly. Do you have any Mock visuals of what you’ve written to give to families?
Hi,
I used to make up classes, but it cost not only your spare time but also the disruption of your activities.
So, instead of making up lessons, I now offer to swap classes with other students. If students are unable to attend the class, they can take online sessions instead.
I cannot guarantee to a student switching classes as well. So far it’s work and all students/ parents are happy .