Music Studio Management: The Art of Raising Your Rates
July 10, 2012
Part of teaching piano (or any instrument/voice) is the management of your business. Many teachers don’t care much for the business side of things, but these this need to be addressed… so here goes.
Inflation happens, so music lesson rates need to change. Housing, cars and food are all getting more expensive. They understand. The parents of your students receive raises every year, so why not you.
Okay now for a plan.
How Much Should I Raise My Rates?
In my experience, and the experience of other teachers, it’s best to raise your rates only a dollar or two at a time. Parents will think, “A dollar? Sure that’s nothing.” If you try for five dollars (because you haven’t raised your rates in awhile) you might find that many of your students will quit. I read about one teacher who shared that when she raised her rates five dollars she lost 9 students.
How Often Should I Raise My Rates?
It’s my thought that you should raise them annually. The reason being, you can raise them by a dollar each year, and avoid the “shock value” that a larger amount brings.
When Should I Raise My Rates?
I have always found that the best time for raising lesson rates is in the Fall, as school is starting. New students are signing up, and it’s a time for new things for your students. If you have a new student that signs up in July, just start them at the new rate. It will save you the grief of explaining why you are raising their rates after only one month.
I wish you the best in the management of your studio, and as always I welcome your comments.
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Brainy Benefits of Music Education
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How to Make Money Online for Music Teachers and Students
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