Existing Students Tuition and Disclaimers
Found in: Fees Rates & Cost, Studio Management
Melva M.
Is it standard policy for studios to only raise their prices for new students? I recently had a parent, who has been with me only a year, tell me that since she is a good paying source that I shouldn’t raise her rate. She came on board for a price of $60 a month for shared lessons and feels that I should only charge the new rate of $80 a month to new students. She seemed to be implying that $60 a month is our contracted agreement throughout the entire Simply Music program. Which brings the question, do any of you have disclaimer clauses in your enrollment policies about your tuition prices being subject to change? Also, how much advance notice do you give students of a price increase? I sent out my notice yesterday that the new rates will go into effect January 1, 2012.
Cheryl W.
Even though $80 a month is a reasonable price to pay, $60 to $80 is a huge jump. I would raise her rates, but not by that much. I have never raised rates by more than $5 a month for existing students. Sometimes I have raised rates by as little as $1 a month for existing students.
I give notice of a rate increase in the Spring for the following September, not in the middle of the school year, because that’s the way I set up my ‘contract’, for the school year. I handle tuition for the summer differently, in a more flexible way.
I used to put something in my agreement about periodic tuition increases. I no longer use it. I don’t think it matters. If parents are willing to pay the increase, they will pay it. If they don’t want to pay it, it doesn’t matter what you say in your agreement, or disclaimer clause.
Marg G.
I’ve been teaching for many years but SM only two. I have ALWAYS had a clause in my agreement saying that fees will be increased annually by a small amount so there will be no big “price hikes”.
QUOTE FROM MY AGREEMENT:
Setting of Fees.
Fee increases only occur annually by a small amount. This means there are never any big price “hikes” and you are always informed either in the Term 4 newsletter or in a special end of Term 4 letter, what the fees will be for the coming year, which gives you plenty of notice to plan your budget.
I NEVER apologize for my rates and have never lost anyone for what I charge. In our group of SM teachers in our city I am at the top end.
It may be possible, as you haven’t got this in your agreement at the moment, to have a conversation around the fact that this is your income and occasional fee increases are necessary to keep pace with the cost of living. After all, and I’m not sure if it’s the same in the US, all tuition has fee increases regularly whether it be ballet, tennis, other instruments etc.
This could be a mild dose of claiming territory on her part without her realizing it. I personally think it unreasonable for anyone to commence tuition and never expect an increase.
Patti P.
I also raise my tuition a small amount every year. I think it’s only reasonable. There’s usually inflation to take into account, plus we’re more experienced every year, and hence lessons with us are worth more! I’ve found that raising just a few dollars at a time, no one complains. $60 to $80 is a big jump – unless your $60 original fee was a special, limited time offer.
I personally think the headache of keeping track of who pays how much would drive me crazy, so new & old students pay the tuition increase alike. I also send out a letter about the upcoming year, including tuition increases, in the spring. My tuition year starts in August since most schools here are usually in session in August.
Francis B.
I keep the same tuition rate regardless of new or existing students as well. I don’t increase tuition every year however; I have increased it after two plus years. It depends on how often you are plan on increasing your tuition. Inflation, economy, your local market, your experience and what your plans are for your studio are all factors to consider.