Should I Raise My Tuition Fees As A Private Online ESL Tutor?
Nobody likes a bait and switch!
With this in mind, when I started my business, I made a promise that I would offer a “lifetime” rate to any existing student. My thought was that student turnover is to be expected and I can offer higher rates to new students. I have found some upsides to this model but also many downsides. Let me explain…
The Upsides:
The Downsides:
Put simply, maintaining steady rates for my long-term students did indeed boost word-of-mouth referrals. However, many of those referred individuals were taken aback by my higher rates. Some even mentioned that the student/parent who referred them is paying significantly less than what I am currently offering. In response, I clarify that I am rewarding the loyalty of long-standing students and guaranteeing them rate stability over time.
However, as inflation continues to mount and my teaching schedule remains mostly full this policy may be doing more harm than good. Because of this I am moving away form any form of pricing guarantee.
But then…
So I am also a language student myself and I choose to take an online class. Its been only about 6 months and I have already been notified that the rates for my class is going up. It feels like a bait and switch. I know it is not, and as a tutor myself I completely understand the need to raise rates. But the experience has led me to consider some issues:
- Is this really money well spent?
- am I learning or just going thru the motions?
- notice I am not asking if the class is worth it, just if the class is worth it to me
- Why wasn’t I offered any type of tuition guarantee?
- Perhaps I should offer my students a guaranteed 1 year without raising rates.
- What does this mean for my business?
- If I raise rates will I loose students?
I’ve said this before, and I’ll reiterate: raising rates is a gamble. Don’t assume that all parents will accept your higher rates, but also don’t assume that none will accept them. One approach could be to guarantee one year of tutoring to each student before raising rates. Above all, prioritize what works best for you and your business.
