Discount / Price Adjustment?!? Please Help
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One of the things that has kept me on track was calculating what the tuition rate is
I agree with posts. I have offered a discounted rate in the past to a current family (I mean really discounted) and now regret it. Mom said it was much more than she had been paying and couldn't afford it. Now, about a year later, she has started her own business and bought a house. I made a shift in my thinking regarding giving discounts in the future. If I feel the need to give discounts, it will be for a LIMITED TIME (say a month) and still only be on a case by case basis. When I started years ago I offered a 20% sibling discount (what was I thinking). Then a family left and told me that the new day care only offered a 10% discount. I quickly changed to that as well. One of the things that has kept me on track was calculating what the tuition rate is on an hourly basis. If I see that it drops to less than $3/hr, I realize that it is not feasible. I actually show that hourly rate to the parents in a Tuition Worksheet so that they can realize what they are actually paying, but it really is an eye opener for me and keeps me on track just as much. We all have to do what we need to do for our business, but we also need to make adjustments to making sound business decisions for the good of the business as well.
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) and do nothing and break even
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