Accounting for holidays in setting fees
Found in: Fees Rates & Cost, Studio Policies
Susan M., Canada
I’ve recently re-listened to the training audios for Setting Fees and I’m eager to change my payment structure to a monthly flat fee instead of per lesson, that includes an increase. But I’m wondering if anyone has any advice on how to answer the questions about months that have holidays. I realize that it’s a choice that depends on your own business situation, but would love to know what’s working well.
Cheri S., Utah
I present exactly what Neil recommends in the training. It’s an annual tuition, divided into equal monthly payments – easy to remember and budget. Tuition holds your spot in my studio and guarantees that I’ll teach 43 lessons each year. It’s very straightforward and no one has ever questioned it. My 43 weeks accounts for scheduled breaks like Christmas and Thanksgiving, as well as three flex weeks I can use any time for illness, personal time, vacation, etc.
I also don’t offer makeup lessons. My studio is full, so it would cut into my personal/family time. But even if my studio weren’t packed, I wouldn’t go back to makeup lessons.
I revise my studio policies once a year, and that’s when I incorporate any changes (including a small increase in tuition every year). My studio runs from September to September. You could do it now and run your studio year from April to April.
Robin Keehn, Washington
I’ve run my studio with a flat fee for years. Here is what I tell parents. I have a certain number of lessons that I teach each year. I take that total tuition, divide it by the number of months, and voila, that is the $100 or $150 that I charge regardless of the number of weeks. Some months have three weeks, some have five but it’s always the same. No one has complained.
