I had a parent call during Christmas break wanting to enroll two young beginners in February. When I called to confirm the arrangements we had made, and he said they had changed their mind. I had already purchased music for them. I would like to charge a $50 registration fee but how do I justify this with parents?
Answered by Wendy Stevens
Well unfortunately you can’t do anything about people who change their minds! But, you are right that this situation is definitely something where a deposit would help protect you from or at least keep you from being out any money! First, consider what you are really wanting to call this fee. If it’s a deposit (meaning that it’s going to go toward something parents would pay for anyway like books, recital fees, etc.), then you just need to make sure that you explain the purpose of the fee and what it will be used for. I would suggest that you call it a “registration fee” so that you can be more flexible in how you use it and you don’t have to worry about keeping a careful ledger to show how much was deposited and how much you spend. A “non-refundable registration fee” accomplishes your goals here without parents wondering what it is going toward exactly.
I don’t always use my students’ registration fees for the same thing, so I’m pretty general in my policy. “Your registration fee guarantees you a place in my studio at the beginning of the term” is a sufficient reason for implemented a registration fee, but I also tell parents that “it helps to deflect expenses for preparing to teach your child (incentives, development of programs, supplies, etc.) for the year.” We all know that there are many expenses that we incur at the beginning of the year which benefit our students (MTNA dues, professional journals, workshops, etc.). If you do use the reason of “guaranteeing a place,” then make sure you implement the policy at the end of your teaching year (say, May to be due in June) so that you know who will be returning to your studio.
Here are a few other options to consider: I charge a higher registration fee for new students than for returning students. So, my policy states that the “registration fee is $30 for new students and $25 for returning students, not to exceed $50 per family.”
And here’s a few important principles that I have learned in piano business matters:
1. Do not change an entire policy based on one person or one problem. Evaluate the impact that your change will make on all of your families and then proceed cautiously but confidently. That said, I think you are right to charge a registration fee across the board. When a prospective student calls and you have to tell them that you are full because someone else will be starting, and that family doesn’t actually start, then you have not lost 1, but 2 students.
2. When it comes to making policy changes that you know are necessary, just do it. Be brief in your explanation, articulate how students are benefitting from the policy change (if applicable-don’t do it if you have to raise your rates because you charge too little), and then deal with the people who have an issue with it one on one. Chances are that only a few of your families, if any, will question this and when they do, you can explain it and see what their reaction is. If they are in financial difficulties, you can make a case-by-case way to help the family. In the case of large families, I state that they will be charged no more than $xx as a registration fee each year (it is usually the price of 2 registrations). In other cases, I have given a family 2 months to pay their registration so that it was not so difficult in one month. However, I would only do this for a family that is already in my studio and who expresses concern for their financial situation.
Remember, most families will not have a problem with your policy change if you state it clearly and don’t over explain yourself. Just do it…and deal one on one with the few that might have a question.
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Do you have a link to the brochure you made about “Where the tuition goes? or something like that?
Sure Stephanie,
It’s here: http://www.composecreate.com/wp-content/uploads/2009/03/Where-Does-My-Tuition-Go-Brochure-for-Web.pdf
When parents and student come for the interview, I give them a copy of studio policy, registration form, etc. On that registration form, I have an $80 deposit. But, I ask them to go home and think it over before signing up. I DO NOT purchase music until I have that registration form and deposit in hand. I do tell them, I use this to purchase music, as well as for festivals, state theory test, etc. Also, I state that at the end of the year, if it has not all been used, they can deduct that amount from their May payment, or I will add the additional to their May tuition payment. I send them a final bill. . I have this on excel and send a copy. This has worked for many years.
Excellent blog, and great advice. Thank you! ( I have just stumbled upon!) I request Sept’s cheque in full, non refundable, in June, and/or upon entry into the studio (if a new student).
You are prompting me to consider a registration fee as well, perhaps when I register for Sept, as we all work over the top outside the actual lesson.
My actual studio set up and schedule takes about 2 weeks.
Am wondering how much of a fee the bulk of people charge? My studio pays all up front in Sept by post dated cheques.
Thanks!
Sally Rowsell
So, Wendy, I am not clear: do you consider the registration fee non-refundable? If I pay it and then decide not to attend lessons, what happens? Is it used to buy music or materials for the individual? Or does it go to the general studio fund? Is the purpose to nail people down on their commitments, offset your prep expenses, or what?
I am thinking of charging a reg. fee, now that I am full. But I am unsure if it will do what I want: keep the schedule full and reduce conflict over returning/new students and times. Does it work?
Hi Megan,
Yes, my registration fee is non-refundable and I don’t use it for things like books. It’s just a fee that I can use however I choose. I usually use it for incentives or other expenses that come at the first of the year, but I make my students buy their own books. The purpose is exactly what you say: nail down the commitments and schedule, offset prep expenses for the year, have a “reserve” fund for incentives, etc.
I do not use it to guarantee anyone’s times. I don’t teach every day, so my schedule is pretty tight and parents and students have to be okay with a new time every year in order to stay in my studio. In August, I sent out a “schedule query” asking parents to cross out times that are absolutely impossible for them. I then plug everyone in, and send it out late August. Some parents are happier than others, but they know that I have to make it work with my schedule or there just isn’t room for them as a student. I am very, very protective of my personal and family time.
Hi Sally,
Boy, I think you’ll find registration fees and deposits all over the board in terms of amounts. Kristin charges a regular month’s tuition, which makes great sense for your own budgeting purposes. I only charge $30, but my families are already paying their regular monthly fee that month anyway. If the reason you are doing a registration fee is to get commitments from your students, then I might set it $50 or less. But, if you are going to use it as Kristin does to help your own budgeting, then I would set it for more.
Since your studio pays all up front, I would suggest making the registration fee due in early July or early August so you know who will be returning.
I am wondering if Kristin’s fee is for an entire month because included in that fee are the books for the year?
I have been doing book deposits now for quite a while but it really does take a lot of time to do it. Getting sick of it. But parents do not purchase the books when they’re needed, or they forget, or they get the wrong thing, drives me nuts, so I prefer to control the book purchasing. Wondering if an easier way to do it is just with a “big” (ie one monthly payment) reg. fee annually and then I don’t have to keep track of all the books for each individual student. But I also need to cover my admin costs (xeroxing, dues and fees, subscriptions, etc.)