Discounting and prorating classes at your swim school, gymnastics gym or dance studio can be confusing and time consuming. That’s why we’ve come up with this article to share with you the tools you’ll need to maximize your program’s tuition revenue while also offering discounts to students when posting tuition.
What is discounting and prorating
First things first. You may be asking yourself, ‘What exactly is discounting and prorating?’ and you’re not alone.
Discounting is a reduction made from the gross amount of value of something. In this case, it’s the tuition fees for your classes.
When you prorate, in this case your tuition, you’re dividing fees in a proportional way based on time. Just think- this is the amount you wouldn’t charge a student when they enroll late in the billing cycle or when your facility is closed for a holiday.
Whether it’s a flat five dollar discount or you want to prorate classes based on the number of Mondays your facility is open in one month, chances are a lot more manual effort goes into calculating your overall tuition fee structure than you realize.
At Jackrabbit Class, we know that automation is a blessing. That’s why we’ve made it easy for you to set parameters on how and when classes should be discounted or prorated so that the appropriate tuition fees are billed to families each month.
When should I offer discounts on classes?
Your decision to prorate classes is a pretty black and white choice. Offering discounts, on the other hand, comes with a lot of gray areas.
There are many different types of discounts you can use when setting up billing for tuition at your program. The most common discounts we see at Jackrabbit are:
- Multi-class – a discount for participating in multiple classes
- Multi-student – a discount for having multiple students from the same family enrolled in classes at your facility
- Family – a discount specific to families at your program, separate from multi-student discounts
- Additional – Additional discounts to families meeting post tuition fee criteria
If you’re having a DPR? IDK! moment, I get it. Too many options can be overwhelming.
As the owner of your activity center, you have the ability to decide which discounting rules get set. It’s absolutely fine to take the less is more route if that’s where you feel more comfortable.
Second in importance to establishing your program’s DPR strategy is making sure discounting and prorating rules are set-up to automatically be calculated when your tuition fees are posted. Because no money gets saved when your staff has to sit and manually enter tuition fees, am I right?
How to offer discounts on tuition- Use case scenarios
Discounts are great when they are done right! So whether you purchased a program and inherited their pricing and discounting structure, or you want to extend a deeper discount to a select segment of students at your facility- there’s a solution for when and how to offer discounts at your dance studio, gymnastics gym, dance studio or child care facility.
Check out how two Jackrabbit Class clients learned how to maximize their discounting and prorating structure when posting tuition fees using Jackrabbit.
Ready to start discounting and prorating with Jackrabbit Class? Start your 30 day Free Trial today and stop spending time manually posting tuition fees.