Setting your tutoring rate can be challenging especially when you feel you might be underselling your services. You might think it is time to raise your tutoring rates, but are you afraid of doing so?
A lot of us stress and worry about if our rates are set correctly. How are you going to communicate your new tutoring rate to your existing clients? What if you lose a student? Whether it’s about launching the prices of your new tutoring venture or communicating a price hike to existing clients, the money talk is always tricky!
It’s important to be transparent with your students about why you’re raising your fees.
This means that you must make sure that you have a reason for the increase and that your students understand why you’re raising them.
So the first question to ask yourself is: “What do I want to accomplish with my rates?”
You may want to increase your rates because you’re trying to get a better job, you want to become more valuable to your clients, you want to increase your income, or you want to expand your business and attract new clients.
You can also increase your rates if you’re offering a service that’s in demand. For example, if you’re a tutor for a specific subject, you might be able to increase your rates. If you’re a maths tutor, you might be able to increase your rates if there are a lot of people wanting to learn maths.
- Become more valuable for your clients — You are a professional tutor. Your rate should set you apart from a college student who is tutoring as a side hustle.
- Attract the right customers — If your rates are cheap, you are more likely to get customers who don’t value quality over cost. People who see the value in your services will not be deterred by your higher rate.
- Loyal customers — The more a person invests into your services the more committed they will be. They will take you more seriosly and this means less cancellations and less issues to deal with.
- Better results — Paying more makes your students more willing to do the work inside and outside of tutoring. If your students improve, you will stand out and get more referrals.
- More money — This one is obvious. You’ll make more money doing the same or less amount of work.
How to effectively communicate a rate increase to your existing clients?
1. Announce prices directly to customers
Make your customers feel important by contacting them one-by-one instead of mass communication. If your initial contact was through a phone call, then it’s best to call them to let them know. E-mail the details after your call for their reference. If you’ve always communicated through e-mails, then sending an e-mail would also be appropriate. Give them a chance to ask questions, and prepare yourself with the relevant answers. Let them get ready financially, plan things out, and make a conscious decision.
2. Explain the reason
Your customers know you have their best interests at heart, and they trust your tutoring skills. They just need to see evidence of it.
Remind your clients how increased prices mean higher benefits for them. Increased pricing ensures high-quality service. Highlight the value that your students get from studying with you.
Never explain your price increase in terms of increased costs. While that might be the actual reason, it is not something your customers are interested in. They will like it if you mention the increase in prices and how they can benefit from it. For example, you could offer improved study materials, certifications, better tools for online education, which would lead to better quality tutoring sessions.
3. Be confident
Make sure that you point out why your students love your tutoring: your unique teaching methods, outstanding results, and most importantly how your students enjoy and understand your tutoring.
The reason you charge the price you charge is that you know you can provide top-quality services.
If clients criticize your tutoring rates, they’re not the right clients for you. But you shouldn’t respond negatively either. Instead, be confident, knowing that you have all the answers to your clients’ questions and you’re worth the price. Even if you offer discounts, maintain composure.
4. Give them time to think and ask questions
Communicating the increase in your tutoring prices well in advance to your clients will help them adjust to the new costs and plan their finances. This is typically 2–3 months before raising your prices. Always be prepared to answer any questions your clients may have about your pricing. If your client asks for additional fees, you can explain your policies about discounts or special offers.
Be prepared for negotiations. Your customers might try to bring down the charges according to their needs. In some cases you might consider tutoring them at your current rates for an extended period. Give them the time they require to prepare themselves to pay you higher. You can still raise the tutoring charges for your new customers.
Never rush to meet a customer’s demands. Take time to listen to their concerns. Repeat your value propositions and how it is for their benefit. Don’t talk in terms of money but in terms of value.
5. Update your marketing materials
Show the price increase on your website with old and new prices, after you let your customers know about it. They need to be able to understand pricing details to make a choice. This means you need to make sure that your materials are consistent and clear in your messaging.
Update your tutoring charges on all your marketing collateral and leave no room for error or miscommunication.
Also, your rates for tutoring should not be the first thing that people see when they land on your website. Have a pricing page that allows you to display all of the costs of your services as well as what you charge for each service you offer, so that clients can make an informed decision about which plan suits their needs best. Ensure that everyone is on the same page with regards to your prices by having a detailed pricing sheet available online.
Final Thoughts
While it can be scary to increase your rates, people who know the quality of your tutoring will be understanding about it. Stick to what you do best and reinforce the value you provide.
Don’t forget to focus on communicating and pricing in a way that sends a clear message that you are an expert and should be treated as the professional you are!
Originally published at https://www.trakist.com on October 12, 2022.
