Friday, July 11, 2014

Pricing Strategies for Private Tutors

A lot of tutors have asked me the following question in the past few months:

How much should I charge my students for tutoring?

This is a valid and relevant question to us tutors.  And you guess right, the answer is "it depends".  In this post, I will share the guidelines and best practices on how to price your tutoring services.  If you have time, I recommend to read the original article from Christie M Van Arragon.

(Source from "Pricing Strategies for Private Tutors" by Christie M Van Arragon)

Step 1: Do your Research

The first step in determining how much you should charge for your tutoring services is to do your research. You'll want to......

  • Search for local tutoring companies that offer similar services and subjects 
  • Search for online tutoring services in your area that offer similar services and subjects
You can accomplish these two tasks by using Google or other search engines, checking the phone book, asking school counselors about other tutoring companies.  After you have a list of similar tutoring companies in your area, the next step is to......

  • Call the tutoring companies and ask for prices
  • Check online tutoring directories (Google, Bing, Yahoo search) to find out what private tutors are charging for the subjects

Step 2: Set your Price Level

Once you have done your research in your area, you should have an idea of how much other tutors or tutoring companies charge for the subject.  If you are a new tutor to the area, you may want to price your services a bit above the average price; if you have been tutoring for a while and you have satisfied customer, then you should price closer to the upper range of comparable tutoring services.

Tips: Never charge below the average or market price.  Why? Delivering value is more important than competing on price.  In addition, if you charge a lower price, you will be generating very little profit to reinvest into promoting your tutoring business.

There are different ways to setup your price list such as pay per session, pay per period, or prepaid packages.  Please refer to Christie's article for more details about each of these pay methods.

Step 3: Adjust and Test

The tutoring market is constantly changing, so it's vital that you do your pricing research at least once every 6 months.  If your pricing structure is not helping you meet your financial goals, you simply need to tweak or update your prices.  Remember, always competing on values and tutoring quality instead of lower prices to beat your competitors.

What do you think?  What other ways do you use to price your tutoring services?

Please share, like, or +1 if you find this article helpful!  Feel free to leave a comment below!

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