Private tutors are in high demand as the curriculum presentation in schools challenge teachers, parents, and students leaving them scratching their heads and searching for someone who can make things a little clearer. You are ready to step in and provide your knowledge and assistance yet have no clue how to go about setting the right price for your private tutoring service.
Knowing your private tutoring service is in demand is one thing. Pricing for that in-demand service can be a difficult task. Start by taking a look at the time frame that you provide tutoring services. As you take a look at how often you meet clients you will begin to notice a pattern forming. You may meet with each of your customers once a week or a minimum of two times per week. This information provides you with a baseline approach to setting your tutoring service prices.
There are essentially two time-frame options you can use when determining how to set your tutoring service prices.Charges can be by the hour or by the week. An hourly charge may be ideal for a client you only see once a week for a short amount of time. Likewise, you may want to consider charging by the week for clients that you see at least two times a week for an hour or more each time. By setting a ‘price per week’ charge, you are providing your clients with a discount price slightly lower than the traditional ‘by the hour’ charge. You can do while still being able to earn a comfortable profit on each client you tutor.
Now that you have an idea of the time frame your tutoring rate utilizes, you need to take a look at what cost approach to employ. On average most private tutors price their services anywhere from $10 per hour all the way up to $100 per hour. Weekly price points typically start at $250 per week and can reach close to $800 per week. There are four basic approaches that you can take to help determine the optimal price you should be charging for your private tutoring service.
You need to know what other private tutors in your local area are charging for their services. This will give you an idea of what you should be charging. If your current price falls below what those local private tutors are charging, you need to institute a price hike starting immediately.
With an idea of what your local tutors are charging, take a look at your cost of living expenses. Compare these expenditures to the income your tutoring service brings in each pay period. If you are barely making ends meet, it is time for a price increase as well.
A second approach to take into consideration when determining your service pricing requires you to take a look at your appointment book. This simple task will help you determine how in demand your services are. If your appointment book is full yet your wallet is empty, then you need to adjust your price accordingly.
Your educational background can play a larger role in determining what price you should be charging your clients than you might think it does. A high school diploma allows you to set your prices at $10 per hour and increase this amount as you gain more educational knowledge under your belt. You can easily charge a rate starting at $40 per hour if you are a college graduate. From there the price options increase based on the level of degree that you hold. Certified teachers and masters degree holders can comfortably charge a client price on the higher end of the spectrum. These prices could come in around $80 to $100 per hour without question.
One of the most crucial approaches to setting your client price takes a look at what subjects you are tutoring. It stands to reason that the standard subjects such as math, history, chemistry and foreign languages are the most popular. These subjects are the most difficult parts of any school curriculum program. You can set a higher price for your services if you cater to any one of these popular subject areas.
If you provide tutoring for less popular subjects such as astronomy, shop class or typing, do not lose hope. You can still charge a respectable price for your tutoring sessions. Being an expert at one particular subject area lets you establish a niche market. It means that you are the most knowledgeable source available for a particular subject. In this scenario, you can potentially earn just as much as if you were providing services on one of the more popular subject areas.
When it comes to pricing your private tutoring service do not be afraid to inform your clients of the new pricing structure. After all they are already pleased with the service you provide. That’s why your appointment book has nothing available until the start of next semester.