No one would like to pay a higher price point for the same thing they’ve been receiving for much less. As a daycare owner, you are prone to face backlash when raising rates. There are multiple reasons that would prompt childcare, preschool and other daycare centres to raise their fees including:

• Cost of supplies and equipment – Covid-19 has caused centres to invest into PPE, sanitization equipment and other cleaning tools. Prices of materials and school supplies necessary for your day to day operations also naturally increase.

• Increasing staff hours– The more experienced, skill and committed your staff becomes, increasing staff salaries is inevitable. Additionally, if you are looking to expand your services in which you are serving more people, providing more hours, you need to pay more.

• Hiring new staff to lower staff-to-child ratios – With the pandemic pushing new regulations, daycares are forced to adjust to a lower staff-to-child ratio, meaning the need for more funds to hire staff.

  Of course, when your fees increase, the value of your business must increase as well. Try these tips to mitigate the backlash when increasing your tuition rates.

Ensure Transparency through communication

Parents will always be concerned when there is a rise in tuition prices, that is why it is better to ease their concerns with reasonable explanation. Parents want to know what value they are receiving and where exactly their money is going to. Provide clarity in the communications you send, whether it is in a newsletter, personal letter, email, or a meeting.

Give notice ahead of time

Raising tuition rates without prior notice will almost always result in unfavourable backlash. Plan to send these communications ahead of time before it goes into effect, so parents know what to expect.

Reasonable rate increases

When raising tuition rates, ensure that you are covering your expenses and budgeting for an emergency fund. The best practice for increases should range from 2-5% annually. Also avoid increasing tuition around holidays as most families are more likely to exhaust spending on gifts and other expenses.

For whatever reason you may increase your tuition rates, always expect some backlash from parents. Without a doubt, you’ll witness a negative reaction but with these tips you can weather down the backlash and parents will appreciate the fact you were considerate, reasonable and transparent. Your customers will then value your service rather than focusing on the price.