Price plays a big role in the success of any tutoring business. However, there is a lot of confusion about the best way to price your tutoring services and how to find the right price. This article looks at pricing strategies for freelance tutors and tutoring companies and how to research pricing in your market.
Set your price level
The first step in determining how much you should charge for your tutoring services is to determine what other tutoring services are charging in your area. You will want to focus on tutoring companies that offer services similar to your own tutoring business, as there can be a large variation in tutoring prices for different types of tutoring.
The next step is to do a little research as someone would in search of tutoring. Find tutoring services in your area online, check the phone book, ask counselors about other tutoring companies. When you have a list of similar tutoring companies in your area, you can find out the prices by calling them and asking or checking their website for prices. You can also check online tutoring directories to find out what freelance tutors charge for subjects your company offers.
If your business is new and you or your tutors have average experience and credentials, then you should try to price your services slightly above the average price.
If your business has been in business for a while, you have satisfied customers, and you or your tutors have teaching experience and credentials, then you should be listed closer to the top range of comparable tutoring services.
Many tutoring startups think they need to start low to attract clients, but this is a risky strategy and may actually hurt your business more than help you. The reason for this is that if your prices are too low, you will generate very little profit to reinvest in promoting your business. If you are paying tutors to work for you, you will also have a hard time attracting and maintaining high quality tutors which are extremely important in building your reputation and creating satisfied clients who will refer you to other clients.
At first, it might make sense to focus on an underserved segment of the tutoring market in your area. This will allow you to charge higher fees and generate higher profits, helping you pay for more marketing and better tutors. These, in turn, will help you establish a base from which to expand into more competitive segments of the tutoring market.
Tutoring Price List
Offering different pricing options can also help your business meet the needs of more customers. There are several billing or pricing methods that you can use.
Pay per session
This pricing option makes clients pay before or after each tutoring session. This is a good method if your business doesn’t have a lot of operating history. It also reassures new customers if they are new to your business and are wary of paying for a longer period of time up front.
Pay per period
Pay per period can have clients pay a week or a month in advance depending on the number of sessions they will have during that period. This method is good for tutoring companies because you get the money up front and you don’t have to worry about students forgetting to pay for each session. It is more convenient for clients because they can pay for a week or a month and do not have to worry about writing a check for each session. Some tutoring companies may bill at the end of each week or month, but for new companies it is best to request payment in advance as this will allow you to receive payment for the tutoring sessions before you have to pay your tutors.
Prepaid packages
Some tutoring companies sell prepaid tutoring service packages. Like 10 hours of math tutoring or 12 hours of English tutoring. These hours can be scheduled for subsequent months as the student schedules them. This method allows you to offer volume pricing that can encourage potential clients to commit to more tutoring sessions.
Adapting your Prices
The tutoring market is constantly changing, so it’s important to be flexible with your tutoring company’s pricing. If your pricing structure isn’t helping you meet your business goals, you should simply try adjusting your prices or possibly your services. People are concerned about value, so if you offer more value in your tutoring services, you may not need to lower your prices, or if you offer more value than you were offering a year ago, then it might be a good idea to increase your prices.
