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Simply put, I need to increase my tutoring rates. When I started out about 10 years ago, I was charging a really low rate. I hadn't done much research and just sort of picked a random number. It was lower than what other tutors were charging and, looking back, this was both good and bad. I had a lot of business, sure, but I wasn't making nearly as much as I should have been.
Fast forward to 2011, I am definitely not making as much as I could be now. I'm making about half, sometimes less, of what other tutors make per session. Also, the fact that the cost of living has increased over the past decade doesn't help my financial situation much.
So I looked over my expenses, researched rates for other chemistry tutors, and know exactly what price range I want to charge.
The problem is, I've never asked for a raise of any kind before. How do I increase my tutoring rates without coming across as greedy? I really like my clients, and don't want to offend anyone.
Thanks in advance,
Mike from VT
Answer: Hi Mike, thanks for your question! Tutor pricing can be a very tricky thing, especially when you are first starting out like you were 10 years ago.
Charge too much, and you risk not getting any tutoring business. Charge too little, and you wind up cheating yourself.
The good news is that it sounds like you have gotten things pretty much figured out regarding your new price point. You have found your ideal rates, and can be confident knowing that you are charging your tutees for quality tutoring.
Ready for more good news? Believe it or not, increasing your rates is easier than you might think. It can be as simple as printing out a quick paper letting your tutoring clients know:
a) How much? What your new rates will be.
b) Why? Let your tutees know why you are increasing your tutoring rates. Giving clients a quick explanation for the new rates will help humanize the increase, and will help clients better understand why you are charging what you are charging. Keep the tone upbeat, straightforward, and to the point. Chances are, they will appreciate your reasons (increased expenses, cost of living, etc.), and they will definitely appreciate your honesty about the increase.
c) "What's in it for me?" Include any discounts that you want to offer clients (if applicable). This can be done in two ways. The first is a bulk rate discount that offers lower rates if your client agrees to a set number of hours. So, if you both sign a contract that guarantees you, say, 35 hours of tutoring, you can offer a lower rate based on that contract. The second approach to offering a discount is to individualize the discount for each client. If you have been tutoring a client for 9 years, for example, you may want to give them a better discount than you would a client you have only had for a few years. It's a loyalty discount.
d) Show gratitude! Thank your client for all of the business that he or she has given you, and assure your tutee that the quality of the tutoring will be just as good as ever. Showing gratitude can go a long way. By thanking your tutee for their business, you are making the transition to higher tutoring rates much easier for them to accept.
When you hand over the new rate sheet to clients, have a quick talk with them about the increase. Go over what is on the sheet you typed up for them to read. Let your clients know that the increase will also help fund learning materials, printing costs, etc. Be upbeat, straightforward, and friendly.
You may be a little nervous, but trust me when I say it will all work out fine. I have found it necessary to increase my rates every few years, and it has always worked out well. In fact, I can honestly say that in all of my years as a tutor, I have only lost 3 tutees after raising my rates. Everyone else stuck with me.
Good luck, and let us know how everything works out for you!
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1 comment:
Hello, Micki, Mike here (original question asker). Just thought I'd stop in and let you know that I finally worked up the nerve to ask for a pay hike, and it worked out great! No one seemed to mind at all, and I am now on my 3rd week of higher paying tutoring. Thanks for the help!
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