How to Improve Revenue When Tuition Rates are Challenging
Fallen behind market tuition rates and struggling to increase revenue? First, read this blog on the importance of an annual tuition rate increase.
Finished? Good. Now, while you are slowly but surely raising your rates, implement a few other money-making tactics to ensure you will have the necessary resources to run your quality business and never fall behind again.
Rent Your Space
Some childcare business owners utilize their real estate resource by renting some of their space outside business hours. Allow your classrooms or gym space to be rented for children’s parties on the weekends or to local church groups for bible studies. Encourage start-up entrepreneurs to rent your space and host their karate or dance classes in the evenings.
Fundraising events are always a great go-to for putting some additional money in your school’s pocket. It’s always best to specify what you are raising funds for, like playground equipment or classroom computers. This way parents know exactly where their money is going and can see the outcome of their donations.
Not all parents are big fans of giving more money to their child’s school, but there are some additional events and services they will happily pay for. For instance, parents are always on board with picture days. Simply choose a photographer willing to share a portion of their sales with the school and you’re golden.
Another revenue-producing option is to add part-time morning classes or afterschool programs in empty spaces at your center. Always brainstorm uses for spaces you aren’t using within your facility at certain times—it could be a missed opportunity for additional income.
Late Pickup Fees
It is common practice for schools to charge a fee when a parent picks up their child after close of business. The typical charge is $1 per minute. Obviously, if a parent contacts you and has a small, one-time tardiness, you can overlook the charge. However, for parents who make it a habit to pick up their children late – causing you to pay staff to stay late (often with overtime) – this charge is necessary to balance your finances and discourage the parent’s bad habit.
So after creating a healthy tuition environment in your school, consider one or more of these options to increase the top line and strengthen the financial health of your school.