The pricing decision is a crucial one when starting your tutoring or private teaching business. I highly recommend doing a bit of market research as there is an enormous range in the prices in this market. You need to find the RIGHT rate for YOUR services; you don’t want to sell yourself short, but you still need enough students to pay your bills.
How do you determine the right lessons fee for your teaching business?
1. Do Your Own Research
Start with looking around to see what other teachers or tutors charge for their classes. Call teachers offering similar classes and ask for their rates. There are a lot of online forums out there where you can ask other teachers about their fees. Another option is to check Craiglist or Gumtree to see what what is the average rate in your area.
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TIP: Do not charge less than your competition! Why? First, it sends a signal that you are an amateur without experience. There are people out there who are willing to pay a premium for a reputable teacher. Second, it is always easier to lower your price if you’re not able to attract students at that rate.
2. Consider Your Location
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Your location is one of the most important aspects to determine your tutoring rate. In general, prices are higher in big urban areas than in rural regions. You should also take into account your local economy. What does a term of music lessons or dance classes cost? This should give you a rough idea of how much are people willing to pay for extracurricular activities in your area.
3. Evaluate Your Experience
Do you have more or less experience than other tutors who offer comparable classes? Do you have special skills that are currently in high demand? Have you received any awards for your work or do you have extensive performance experience? Naturally, the more experience you have, the more you can charge for your lessons. Have a good think about what sets you apart and what you can offer to your students.
4. Consider Your Educational Background
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What is your highest degree of education? Someone with a PhD can usually charge a lot more than someone with a BA. Do you have a pedagogical background or did you do some kind of a teacher training? Do you have the necessary qualifications to work with children in your country?
As a rule of thumb, any credentials you can show to your prospective students can help. Some parents might place quite a lot of importance on degrees and prefer to pay more for a well educated and experienced tutor or private teacher.
5. Define Your Target Market
Are you targeting higher income individuals or poorer families? Why do your students attend your classes? Do they need a certificate at the end of the course? Another important factor is the size of the group – Are you offering individual, small group or large group classes?
6. Think About the Nature of Your Subject
Some disciplines require a significant time for preparation while others are not as time-consuming. Do you need to spend a lot of time studying and improving your skills yourself? Are the study materials expensive? Does your subject require a special qualification which is hard to obtain? If you are teaching common subjects such as English or Maths, you normally cannot charge as much for your classes as someone offering specialized IT training.
7. Factor the Distance you Have to Travel
If you offer private lessons at your students’ home, you are likely to spend many hours travelling. Don’t forget to factor this time to your rates as you would otherwise sell yourself short and end up being frustrated with how much you get paid per hour. On the other hand, if you teach at a particular location, this factor is probably irrelevant for you as you have one base for all your classes.
At the end of the day, the amount you can charge for your services depend on the students’ willingness to pay. It’s all about supply and demand and you need to find your sweet spot. Charge everyone exactly the same fee. You don’t want people to find out that someone else is paying less for your classes.
Do you have any other tips on how to determine a lessons fee? I’d love to hear your thoughts, so please share your comments below.
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