I have not raised my rates since I began teaching in 2007. I charge a flat monthly rate, and am considering increasing each month’s payment by $5 starting in Sept. I find myself worrying about how my families will react to this change, and how I’ll prepare to answer. I am very involved with MTNA and my local chapter, which I was not 5 years ago, I have more resources at my finger tips, I attend conferences and workshops, and I earned NCTM… not to mention inflation, and the fact that I recently got married and have a hungry husband to feed every day! I don’t want to go into too many details, but want to stay professional. Would it be easier if I just increased monthly tuition by a dollar every year? How do you handle this? Any advice?
Continuing in the same vein as the last two weeks with a business-related question, I though this one seemed particularly apropos for this time of year as we evaluate and implement changes in our policies for next fall. I’m sure there are lots of different ways to go about raising rates, but I personally think that a brief statement with a reminder of the studio benefits is probably sufficient.
As much as it’s tempting to want to give long-winded explanations (a.k.a. apologies) for rate increases, as you alluded to, the professional approach is to assume that families will understand the rising costs and place enough value on the services and education they are receiving from you to be completely fine with it. A $5/month increase per month seems very reasonable in light of what you are providing for your students. You might want to read this post on Three Simple Questions to Help You Figure Out What to Charge For Lessons for additional ideas. I also encourage you to read the comments on Do Independent Music Teachers Get Sick Days? and Determining Monthly Tuition for some fabulous perspectives from other teachers!
In case it’s helpful, here’s some sample verbiage that I’m using in my studio update this week to inform families about the new studio rates:
The rate for lessons will be increasing from $__/month to $__/month effective September 1, 2012. This will continue to include weekly private 45-minute lessons as scheduled, participation in all studio group classes, recitals, and creative projects, access to the studio lending library, use of studio technology, and opportunity for involvement in many other community festivals and competitions.
If anyone else has input on how to raise tuition rates in your studio, please feel free to offer suggestions!
Remember, if you have a question you’d like to contribute to next week’s Monday Mailbag, leave it in the comments below or send me an e-mail sometime this week with Monday Mailbag in the subject line!