Simpedia

Kim B.

I have gotten so every e-newletter I send out has the discontinuation policy on the side.  Don’t know if parents read it, but at least it is there all the time.  It amazes me how many parents are so surprised about it.

I am also going to only taking students when I get a cc#.  This way I can still charge it and they really can’t say too much about it.  I also have a lot of families who pay late.  Yes, I do charge a late fee, but they seem to ignore that too.  I’m sick of it!  (Getting off my soap box now.)  It is just a difficult line to walk.  I still have a parent who quit in late winter who owes for a month of lessons and Foundation 3.  Now that makes me mad!

Good luck in deciding what to do.

Shanta H., Minnesota

I have a similar discontinuation policy to you Mark.  In my explanation of my “enrollment deposit” (2 months of fees plus materials, usually at a 20% discount in my case), I am sure to  make the following points:

1. You are paying for your first and last month of lessons
2. I do this for several reasons:
   • In consideration of your classmates and of my time, I need 30 days notice if you’re quitting
   • It takes 2 months to be certain whether or not Simply Music is a good fit for you
   • I’ve had enough trouble enforcing my 30 days notice policy that I need to get that money up front. I’m running a business and I need to be professional about it. Unfortunately, not everyone is honest. (I think saying this out loud makes people be more honest)
3. If you give me 30 days notice, you pay no fees your last month
4. If you don’t give me 30 days notice, I don’t owe you anything, you don’t owe me anything, and everyone is happy.
5. Regardless of how much my fees go up in the meantime, your final month is at today’s discounted rate.

I also have every family sign a copy of the policies and keep it on file just to cover my rear legally.  I update my policies annually and have everyone sign new copies when I do it. So far I haven’t had a problem with this discontinuation policy.

I haven’t had any situation turn ugly like the one you are describing, but I did have one family ask for a refund on part of a workshop. They didn’t show up for workshop session #3 (of 4), called 5 minutes after class had started and asked for a refund. I didn’t have anything that EXPLICITLY said no refunds on workshop fees – something I’ve fixed—so I said I would give a partial refund.  I explained that I could not refund the materials cost because I can’t reuse them, but that I would refund the portion for the lessons that were still remaining in the session. I did not refund for the class they missed and called 5 minutes after it started.  It ended up being only a $35 refund, and I think they were not very happy with me. This is Minnesota, so the only way I know this is because they never responded but cashed the check.  However, for me it was a balance of doing SOMETHING to make them happier while still maintaining my professionalism. I know that I don’t want this family in my studio, so I wanted to end the relationship with a clear conscience.

I don’t know if that story will help you at all, Mark. I’m sorry you had a group implode like that! I think sometimes those students/families who come along and shake you up are sent by the Universe to teach you something important about running your business!

Laurie Richards, Nebraska

Unfortunately, the only way to ensure that you get paid is by processing credit card payments.  I have chosen to require automatic payment from all of my studio families.  Two main reasons were to enforce my 30-day discontinuation notice policy, and to save time processing payments.  With a larger studio it’s worth the cost.  We collect payment for over 100 students with a few clicks and no trips to the bank.  I realize that’s not feasible for everyone.

As far as families requesting a refund even though it goes against your policies they have agreed to, I suppose you have 3 choices:

1. Stick to your policies and show them where they have agreed to it (do you have them sign anything?), explaining that the policy, which is standard practice, is in place so that you can run your business effectively
2. Issue a refund for the reasons you stated (although you also run the risk of them spreading a different impression – that you don’t always enforce your policies)
3. Come to a compromise – e.g. refund half of the amount

What has helped me see clearly in situations like this is to put on my ‘tunnel vision goggles’ and look at what makes the most sense for my business, including any aftereffects and side effects (for example does it affect my family, does it make me feel frustrated, etc.).  Then I ask myself, is this solution fair to everyone involved.  If so, I just do it and let all the “what if’s” fall by the wayside.  Once I make the decision, there is no agonizing over it.  This has been a process for me, having had many situations in which to practice it!

Whatever you decide shouldn’t be put in a box of “right” or “wrong” – just what works for you.   Think of Neil’s nonjudgmental conversation “I completely understand that you have a lot going on and that it’s really difficult to find the time to practice.  I really do get it.  It just doesn’t work for me.”   That kind of conversation has had a huge impact on how I handle situations.

Beth S., Tennessee

It seems to me that there is a bigger problem here. I think these sort of issues speak more loudly of a relationship problem than of a policy problem. When there is a good relationship and you’ve dealt with people as individuals–endearing them to you and inspiring their loyalty (which can take a fair amount of work and effort, by the way)–and not just business clients, they will be less apt to take advantage. People can tell if you care more about them or your business, and they will give back in kind. Constantly doling out rules and policies puts people on the defensive and is the wrong focus in my opinion. While a requirement-based studio is important, I always let relationship trump requirement if one must win over the other, and I have had very few issues like this to deal with. While there may be some short-term, occasional losses, I think there are better long-term benefits to maintaining a more positive spirit.

Carrie L., Michigan

Laurie speaks things so clearly!

We do credit card recurring payment and probably 3/4 of the students do recurring. There were some when we wanted to go credit card or no enrollment.. that only pay cash for things it was a dealbreaker for them. We may revisit it again but it is what it is now.

We have had many people try to get out of the ’30 day policy’ and what’s help is a firm but kind reminder that they signed a contract saying they will pay and give us 30 day notice.  We also do our ‘big’ recital the 2nd week of June on purpose because students HAVE to be enrolled in June to do the recital. They also have to pay for June and prepay for Sept OR pay for June and take at least 4 weeks in July/August if they want to be the first in line for fall schedule.

This policy helped quite a bit today. We probably had 10 students that would have quit in June but stayed so they could do the recital and some that would have quit for the rest of the summer (June-August) without our prepay policy.

The biggest thing is being firm and upfront and just  matter of fact about it. We also have office staff that help enforce our policies.