$100

     As summer gets underway, here's something to think about to grow your enrollment.  Actually, many schools do this already - offer a "finder's fee" for new students.

     Capitalizing on the axiom "Parents talk to parents," good "buzz" about your school from parents that lead to other parents enrolling their children can be rewarded.  Some schools give $100 in cash, some give gift cards, but most take $100 off the tuition for every child that enrolls in the school (if there's no family discount), or per family, that recommended your school to the new parents.

     The problem is that most schools give this benefit right away, off this year's tuition, and there are two problems with that type of reward system:

     1) Giving the reward during the "current" school year results in a loss of $100 in revenue.  Even though the new parents are paying tuition, if you've already built your budget, you've just shorted your school $100 (or more) for a new child that is enrolled in your school.  This gives the impression that your school's tuition is able to be discounted.  Usually, in the business world, things are discounted when there's an oversupply, and stores adopt the mindset that it's better to make a little off a product rather than just take the loss.  With most schools budgets being as lean as they can be, to further discount tuition isn't fiscally prudent...

     2) especially if the new student leaves before the end of the school year.  We all know the reasons that children are disenrolled from our schools - there are too many to mention.  Therefore, if you give the $100 tuition credit in the current school year, and the new student leaves, you've just given away a reward for no results.

     Rather than giving the tuition discount for the current school year, give the $100 off next year's tuition if the new student remains through the whole current year.  While it will require a little bookkeeping memory, you can then build the budget for the next school year with this consideration in mind.

     Have a safe summer, and for those of you that are using it, we hope the BASICS tool will Bring Additional Students Into (your) Catholic School!  Drop an email to mikez@schooladvancement.com and share your results.  Thanks!!

© Michael V. Ziemski, SchoolAdvancement, 2008 (Original publication date: 20080602)

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