By: Mago Lauritzen

Automating your studio tuition collections is probably the single most important thing you can do for your business this year. You'll see it increase your overall collections percentage, your student retention, not to mention the time you save not handling it all yourself. This article examines exactly how this happens, and why tuition automation is so important.

Increased Collections

The companies that automate your tuition collections for you are better at collecting than you are. (Don't feel too bad, you teach better than they do!) Just by automating your tuition payments with a billing company you guarantee an increase in income each month. With the billing company that I work for we see on average a 10% increase in collections for each studio just in the first month. Just recently a studio with some significant problems signed up and we've seen an increase of almost 20% in just three months.

This increase in overall tuition collections makes any cost of using such a service almost negligible. It pays for itself. Plus, you have the added benefit of not having to do any of the work. Why would you not do that?

Students Love it

Many studio owners are hesitant to automate their tuition billing because they are afraid of how their parents will react. They are afraid they'll lose students. Students and parents love it. They don't have to remember to bring a check in to the studio each month. They have some flexibility in the method of payment they use. They love it. Present it to them as a positive step forward for your studio, don't give them the option to pay at the studio, and you won't have ANY problems.

Here's the dirty little secret. Those parents who resist are those who will be your problem payers anyway. They know that they can't weasel their way out of paying tuition any more. They are the ones you want to get on this system first.

Increased Student Retention

Your overall student retention will also increase. Think about the psychology for a moment. Let's suppose a student has missed a couple of classes. They are getting out of the habit of coming to class and you run the risk of losing this student. Now their next tuition payment is due. They know that when they come in to the studio they'll have to pay tuition, probably a late fee, and maybe feel embarrassed in front of the other students and parents. This increases the risk of losing the student.

When you automate your tuition the parent knows that payment is going to come out on time anyway. They want to get their money's worth. That student is going to be back in class! It works, it's almost like magic.

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