Thread: Raising Rates
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Unregistered 11:08 AM 02-28-2012
Hi. I am considering taking over an already existing daycare. The school is awesome!! In order to "break even" the school needs 54 students. Currently the school has 51 students and is licensed for about 100. The owner is currently in the hole every month about 3-4,000 p/mo. the school is AWESOME, but it is a hidden jewel. The owner is hardly there and has other facilities and is unable to advertise and market, etc b/c of his schedule. I am considering taking over the lease and keeping the existing staff, director, etc but am considering raising the tuition about $12 a month to make up for the loss and also do marketing and other things to get the word out. The tuition is currently priced about 200-300 dollars LESS than comparable preschools/daycares in the area. It offers Spanish, a full computer lab and so many other amenities! I am just worried about the parent's reaction to new ownership and the $48 p/mo increase. Any thoughts or suggestions??