Dear SmallBizLady, I just purchased a daycare center. Should I offer the returning customers the existing price or my higher pricing?
A Giants Preschool LLC
One of the great things about buying a daycare or any existing business is that you already have cash flow. If you are taking over a daycare center, you must especially be customer focused. If your parents are already accustomed to paying a certain amount, you do not want to shock them with a sudden price increase. You will also need to feel out your new staff and learn about the children. You need to keep your client families while you learn about the nuances of this business. Do not change too many things at one time. Make your transition as seamless as possible. The new year is a great time to introduce a price increase. Just make sure the pricing model covers your costs and generates a profit.
If you have a small business question, Ask SmallBizLady.
For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.
Melinda F. Emerson, known to many as SmallBizLady is America’s #1 small business expert. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing to fulfill her mission to end small business failure. She writes a weekly column on social media for The New York Times. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also the bestselling author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.