Positive relationships

How to address preschool tuition increases with parents

Tips to help the conversation go as smooth as possible
how to talk to parents about your childcare's tuition increases
October 30, 2024
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In a rush? Here's a quick breakdown.

  • Revenue is a critical part of running a high quality childcare center. And sometimes a need for more revenue means a boost in tuition fees.
  • It happens, and it's normal, but that doesn't mean parents love to hear the news. Here are tips you can use to help you navigate the conversation.

Tuition fee increases happen more frequently than we’d like, but the conversation still never gets easier: you increase your rates, and parents, well, they aren't thrilled...

Here are some tips you can use to hopefully make the conversation about raising tuition rates go a bit smoother.

The big ideas

Before the conversation

This type of conversation requires some prep and planning…

  • Know your “why”
    Be able to explain the reasons behind the increase. Rising operational costs? New learning tools? Staff raises? Make the reasoning as relatable as possible, so that they understand the need for it. If you don’t have a clear “why,” it will be even harder to get the parents on board and you may risk losing some of their trust. 
  • Timing matters
    Avoid busy or high-stress times - like pick up and drop off - and choose a setting where parents will be able to appropriately take in the information.
  • Method matters
    Usually topics like tuition increases are best in-person. However, you also don’t want the news to spread through word of mouth before you get the chance to talk to each family. So, make sure the information gets out to each family within a reasonable time. This allows you to control the conversation, and prevent gossip and hearsay.
    If you are worried about the news spreading, you can always write a well-thought out tuition increase letter or email.
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Time to address the families

How to start

Initiating the conversation is typically the hardest part. But, guess what? No need to have any elephants in the room! Admitting that can be a great place to start. 

It’s okay to start the conversation by acknowledging that this is not an easy conversation and that you are a bit nervous. This will actually help set the tone for a transparent conversation, and will also make it a bit more casual and personable.

The tone of the conversation

  • Be direct, but friendly: This definitely is a tough balance to find, but it’s essential. Be friendly, but don’t try to add too much “fluff” that they don’t get the message clearly. 
  • Be empathetic: Parents should feel like they're being informed, not like they’re being talked at.
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What to say

To help find the sweet spot between being direct and friendly, while avoiding the “fluff,” here is what you should do.

1. Address concerns proactively

  • A common concern parents may have is their own budget - especially if they have multiple children attending your childcare center. Make sure you let them feel heard, and offer solutions, like payment plans if possible.
  • Another common concern is the fear that the tuition will just continue to increase. If they bring this up, don’t lie to them. You can acknowledge that it is a possibility, but that you also try to do everything you can to provide the highest quality of care.

Which brings me to…

2. Focus on the benefits

  • Frame the increase as a positive investment in their child’s growth and development.
  • Reinforce the why: you found a way to provide higher quality of care, but to do so, you need more revenue. 
  • When reinforcing the why, make sure to give concrete examples of how the change will positively impact their child’s experience. What specifically will this new increase go towards? A new, safer playground? More staff? Childcare management software? 

*Be confident. Focusing on the benefits allows you to show all the proactive, hard work you are doing to deliver the high quality of care that you have promised, and that’s nothing to apologize for. 

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3. Be ready to listen

Even if you deliver the message clearly, as friendly and as perfect as it could be, you should still be prepared for some disappointment, frustration or worry. 

Be ready to listen to families’ emotional responses, which are very natural and expected when receiving tough information. Active listening requires patience - don’t cut them off or try to convince them that their response is wrong or unreasonable. 

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4. Offer support and alternatives

  • Sometimes the best type of support is just listening and allowing them to express their worries. 
  • Other times, support needs to be more tangible. Provide resources or recommendations, especially for families experiencing financial strain.
  • Are there ways the parents can get more involved, like fundraising or volunteering, that will then offset some of their tuition costs? You can use this opportunity to reinforce the importance of community, by encouraging a group of families to get involved together. 

5. End the conversation on a positive note 

  • Emphasize the shared goal of supporting a nurturing, quality learning environment for every child. Remind them this isn’t possible without revenue to support the tools, resources and staff that are needed to deliver on that shared goal. 
  • Once again, acknowledge the tough nature of the conversation, and thank parents for their trust and understanding.
  • Finally, remind them you’re always available and want to do everything possible to make them feel like they’re valued and supported. 

Like I mentioned above, if you are unable to have the conversation about rising costs in-person, you can send a carefully written daycare tuition increase letter using the same tips as above: emphasize the 'why,' share concrete examples, and address any possible concerns proactively.

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Please note: here at Famly we love sharing creative activities for you to try with the children at your setting, but you know them best. Take the time to consider adaptions you might need to make so these activities are accessible and developmentally appropriate for the children you work with. Just as you ordinarily would, conduct risk assessments for your children and your setting before undertaking new activities, and ensure you and your staff are following your own health and safety guidelines.

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