Drafting the annual tuition increase letter is easily the most anxiety-inducing task on a director's plate. You stare at the screen, terrified that sending it will cause a mass exodus of your absolute favorite families. The truth is, if you run a phenomenal program, parents will stay. You just have to communicate the increase correctly.
The biggest mistake you can make is apologizing. Never apologize for running a financially sustainable business. Instead of citing vague inflation or rising overhead costs, tie the price increase directly to the quality of the child's classroom experience. Explain explicitly that the extra revenue is going directly toward retaining your incredible teaching staff and upgrading the playground equipment. Give them at least sixty days of firm notice before the new rates take effect. When families understand that the increase directly benefits their child's daily experience, the vast majority will not flinch. The families who leave over a modest rate increase were almost certainly already looking for a reason to go.