Before I share our method for collecting payments
from our students, I truly believe that every teacher
should utilize a method that works "best" for all involved -
the students and the teacher. No one plan will suit
everyone but with that in mind, here's what we do:
(Remember that I teach out of my performing arts
studio which houses a music studio, dance studio,
gift boutique and sewing business - not out of my home)
We teach a 33 week school year and divide the
total cost of a year's tuition (based on the the type of
class the student is taking
and the discipline, ie dance/singing/musical theatre)
into two different payment methods:
3 times/year due Sept/Dec/March which incorporates
a discount on our regular price (approx. 10%) OR
6 times/year due Sept/Oct/Dec/Jan/March/April
and doesn't include any discount.
For billing purposes we only have to send out reminders
at the most 6 times (more people pay the 3 payment plan).
Most students have commented favorably to this system because
of the inevitable hassles of the monthly method where it seems
that the focus is on collecting the money more than anything else.
Running a business, we absolutely cannot go on a "pay as you go"
system for our regular customers who sign up for the full school year.
With numerous performance opps throughout the year, our tuition allows
us to book and pay for recital venues and our final show at a larger
theatre.
There are exceptions where we contract just a few lessons with
someone (ie to prepare for auditions) and negotiate a payment
plan with them. Also, our customers feel that they can come to
us if they cannot financially pay in the 3 or 6 payments and we have
worked out special circumstances with them.
We also belong to Pro Kids which allows some students (18 and under)
to take classes for free.
As a voice teacher, my students range from 10 years old to senior citizens
and their goals are quite varied from working toward acceptance in
music degree programs to being able to read music and sing in tune
to participating in musical theatre productions. When I used to teach
at home, I could afford to do payments monthly or even weekly
but as a professional
business, the bookkeeping entries get ridiculous if you have to enter
weekly lessons. Also, for tax purposes, private music teachers have been
under the gun for not reporting ALL their income because they have people
paying in cash as they go and then simply destroying the records.
With our tuition system, all monies are reported and our books are easy to
maintain.
This works for our business. I did things differently when I taught at my
home and my overhead was so much less.
In every community (we only have 120,000 people), there are choices
so students should be able to find something affordable.
jacqueline
www.tbmall.com/slightlyoffbroadway
(gifts/costumes/classes & more)
Read my articles at:
www.suite101.com/welcome.cfm/musical_theatre
and
Have fun at:
www.geocities.com/sloffbrdway
"There's no business like show business"
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