How To Raise Preschool Tuition (Without Losing Students)

Did you know it is possible to successfully raise tuition every 2 years without losing any of my preschool families? It’s true!

Tuition increases are never easy to do, but they are necessary. How can you raise preschool tuition without losing your families? Read this post for tips on raising tuition without a revolt!

When Should You Raise Tuition?

There is a formula to follow for tuition increases, and the middle of the school year is not the time to do it. When a parent enrolls their child in your preschool for the school year at X amount of tuition each month, they expect to pay that rate for the entire school year. If you try to raise tuition rates midyear, you are likely going to lose several families.

Here is a better way to handle tuition hikes:

• The first year of your preschool, set your tuition slightly above your competitor’s rates. For example, if their rate is $150 a month, set yours at $155-$160, not remarkably higher, but noticeably higher.  

• After your first year, raise your tuition prices about 10%, from $155/month to $170/month.

• Then raise tuition slightly every two years after that.

The significant increase after the first year of teaching is because during your first year, you will be learning, and constantly improving, everything about your preschool from your communication to your teaching techniques, to your supplies, to the bonuses you offer your preschool families. You will be able to reinvest some of your profits back into your business to purchase new materials, and resources.

The first year of your preschool, families will sign up because of your personality and professionalism, the second year they will stay because of how much you have improved. And because of the value you offer for the rate you charge. Announce the rate increase for the following school year at registration time.

How To Make Tuition Raises Easier To Accept

No one ever wants to hear that their rates are increasing, but there are ways to soften the blow. The best way to do this for your preschool is to add value in addition to raising the rates.

Here is a list of things you could add:

• Free Field Trips For The Whole family
• Free Family Events (Fall Carnival, Christmas Party, Safety Expo, etc.)
• Free T-shirt for Every Student
• Free School Supplies
• $50 Referral Credits
• Free End of The Year DVD
• Free Class pictures

Remind Your Parents That You Always Over Deliver

Throughout everything you do for your preschool, seek to make it excellent. Always be looking for ways to increase the value you offer to your preschool families.

Let your motto be #MoreThanJustPreschool. And remind your parents often that you always overdeliver, that you always offer more and more free things to your preschool families. When it is time to raise preschool tuition, you can do it without losing any families if they know that you always overdeliver.