Fee Increases – when & how much?
Shelly W., California
I am curious to hear how various teachers decide on when and how much to increase their fees. I seem to remember Robin Keehn mentioning a particular percentage she uses when raising her rates. In the U.S. the rate of inflation is currently between 2 and 3%. So I’m guessing that’s a good place to start.
Also if anyone has found an eloquent way to communicate your fee increase to parents, I would love to get a sense of the wording you use.
Patti P., Hawaii
Tying your increase to the inflation rate is a good place to start. That at least keeps you from effectively making less money each year. If you want to give yourself a raise, you need to add on to that a little. I do that every few years because I work hard at being a better teacher as I go along. No one but me can give me a raise!
I think changing your tuition rate annually is a good idea. That way you can make smaller changes that are usually not even remarked on by your families, rather than a big jump periodically that might lose you students.
Shanta H., Minnesota
I also raise mine a little every year, either by actually increasing fees or by taking an extra week of vacation. I have it in my policies as well.