Raising your rates... or not?

[dinulip]

Because of the pandemic, everything gets more expensive - food, services, etc. I am now teaching online, and considering raising (minimally) my rates. Just wondering what the situation is like out there... Are you guys raising your rates this year?

[keypeg]

Because of the pandemic, everything gets more expensive - food, services, etc. I am now teaching online, and considering raising (minimally) my rates. Just wondering what the situation is like out there... Are you guys raising your rates this year?

Are you saying that you are thinking of charging more for on-line lessons, than you did for in-studio lessons?  Are you able to offer greater value and results, to justify charging more?  If people are losing jobs / income, is that the time to raise rates for a non-essential service?

In my profession, some agencies hiring services were trying to pressure colleagues to lower their rates.  I know one teacher who worked for a school or store, that also wanted all teachers to accept being paid less.

I am not a piano teacher, but I see your question unanswered and this is what popped into my head.

[timothy42b]

Online teaching is not the same value as in person.  It can be done well but it's not quite the same.  So you should charge less.

And yet, online teaching from a good teacher is a much much greater value than in person teaching from a mediocre teacher.  and there are a lot of those.  So IF you are one of those really good teachers, and IF you have now learned to do online teaching optimally, then you should charge more. 

[michaellanglois]

I wouldn't do it if you can possibly avoid it. I agree with the other posters in that there is probably (correct me if I'm wrong) not any added value in the online lessons and therefore no real justification for a rate increase. It may come off as insensitive and if it doesn't outright lose you students, it may frustrate some of them.

Mike

Because of the pandemic, everything gets more expensive - food, services, etc. I am now teaching online, and considering raising (minimally) my rates. Just wondering what the situation is like out there... Are you guys raising your rates this year?

[teresaolson]

Perhaps last year may not be a good time to raise your rates. But it would be appropriate this year, if you haven't already. The good reason for doing so is inflation. If everything else (from grocery) has increased in price, why not piano lessons? If you are worried about losing students, you can test your new tuition on new students. If that is successful, inform your current students of the upcoming increase. Students and parents who value your service will continue their education with you.

[lelle]

I know from my day job that prices on books rose sharply last year, and have somewhat receded this year (but not to pre-2020 levels). It would not be entirely surprising if other things rose in price as well.

[determined2learn]

A few questions. When was the last time you raised rates?
Could you raise for new students only?
Is there such a thing as charging more for levels of instruction that require more prep time for you?


A wild thought - If a student is able to obtain a financial reward (college scholarship for example) you could have rates acknowledging your part in the student's success.


Check around to see if other instructors (golf, gymnastics, karate) are raising their rates.


Are your rates inline with others in your area?

[timothy42b]

I know from my day job that prices on books rose sharply last year, and have somewhat receded this year (but not to pre-2020 levels). It would not be entirely surprising if other things rose in price as well.

When I rebuilt my shed (sill plate and the bottoms of each stud rotted out) a 2x4 was about $3.00 USD and I needed a lot of them.

During COVID they went up to almost $9.  I checked yesterday (still have to frame around a window) and they were down to $3.50 or so. 

[keypeg]

A wild thought - If a student is able to obtain a financial reward (college scholarship for example) you could have rates acknowledging your part in the student's success.

This one bothers me.   A student who earned a scholarship probably worked hard on it, and in more than one subject (do you mean a music scholarship in particular?).  People charge more for their services if they are offering more.  Will other students be aiming to earn scholarships through you teaching them or their child piano?  This doesn't make sense to me.

What if a person won a scholarship as aid from financial hardship?

[quantum]

Could you raise for new students only?

It can become complicated if you have a large studio to keep track of everything.  Also students/parents will start to talk among themselves, and some may question the business practices of the studio.

IMO, it is best to keep a uniform rate for all students.  Make raise increases a normalized activity to support the raise in cost of living. 

A wild thought - If a student is able to obtain a financial reward (college scholarship for example) you could have rates acknowledging your part in the student's success.

That is like the music teacher or sports coach that displays trophies in a prominent place and uses them as marketing. 

IMO one's fee should be based on the value, skill and experience a teacher brings to a student, as well as the amount of time needed for a teacher to accomplish their job well.  The learning experience and growth of a student is much more important than the amount of collected trophies. 

[ignomike]

I agree with quantum, though I would say that potential clients (parents) will inevitably judge your worth in trophies so playing that game on the side isn't a bad idea despite how gross it feels. Of course don't make that the main driving force of your lessons as student happiness is far more important.

Most of these answers seem to be coming from the point of view of the pupil but if OP's income is dependant on this then they must think like a businessman and charge pretty much whatever they can get away with sorry.

I'm in a similar situation with my schedule being maxed out (6.5 days a week) for the last 2 years straight and always turning away new and higher paying clients as I feel beholden to my old students (and I like them). Unfortunately even at maximum capacity I need to increase my income so I'm in the horrible position of needing to cut the lowest paying ones and I feel terrible about it but I know my life will suffer otherwise.

[keypeg]

I agree with quantum, though I would say that potential clients (parents) will inevitably judge your worth in trophies so playing that game on the side isn't a bad idea despite how gross it feels.

Quantum said that it was like someone displaying their trophies, but not whether this would get customers to want to sign up with such a teacher.  I certainly would not, on that basis.

[ranjit]

The teachers I've seen often show on their website that they have had students who have won state/national competitions, but don't delve into the specifics. This seems to be a good middle ground imo.

[keypeg]

The teachers I've seen often show on their website that they have had students who have won state/national competitions, but don't delve into the specifics.

If I was looking for a teacher, I would be cautious if I saw that kind of thing.  It depends what else they had to say on their site, and what kind of impression they gave in a trial lesson or first encounter.

[lostinidlewonder]

None of my students really care about my or my students accomplishments nor do I use that to attract future students. I think the lessons themselves first and foremost demonstrate if you are worth the money or not, it's pretty much as simple as that. I live in Australia so perhaps the demographic is different compared to other places in the world.

Personally I don't want to attract clients who judge my worth based on my other students achievements, if that was a requirement for teaching I would only select the best students who work the hardest and are the most talented. That to me would be rather boring as an educator, I do enjoy dealing with problematic and struggling students and help untangle the mess with them.

During this pandemic I realize a lot of people have lost incomes so I don't feel it would be right to increase my rates. I've had to lower it for some and not charged those who had to miss lessons.

[determined2learn]

My " wild thought " was just that. Yes, a music scholarship. If a student comes to you and says they want to be accepted in a music school, the teacher would be as invested in the student achieving that goal. Hard work, it seems to me, would be expected on both sides.


I know a golf facility where their website boasts about the number of students who have gotten scholarships, reflective of both student and instructor success. Do these students pay more? Likely not, but it is the basis for their fee structure.

[dogperson]

My " wild thought " was just that. Yes, a music scholarship. If a student comes to you and says they want to be accepted in a music school, the teacher would be as invested in the student achieving that goal. Hard work, it seems to me, would be expected on both sides.


I know a golf facility where their website boasts about the number of students who have gotten scholarships, reflective of both student and instructor success. Do these students pay more? Likely not, but it is the basis for their fee structure.

.

If I were a student applying for a music scholarship, I would be offended if a teacher told me they would need to charge me more for lessons.  Shouldn’t a music teacher be providing the highest quality lesson possible to each of his students, regardless of whether this was gor a college application, a competition or just learning for self-enjoyment?  Yes.
Every student is a lot of work, each with different needs, strengths/weaknesses.

I agree with LIW, there has been a lot of economic hardship to COVID, and that is not over.  Not a good time to raise rates IMHO.

[anacrusis]

.

If I were a student applying for a music scholarship, I would be offended if a teacher told me they would need to charge me more for lessons.  Shouldn’t a music teacher be providing the highest quality lesson possible to each of his students, regardless of whether this was gor a college application, a competition or just learning for self-enjoyment?  Yes.
Every student is a lot of work, each with different needs, strengths/weaknesses.

I agree with LIW, there has been a lot of economic hardship to COVID, and that is not over.  Not a good time to raise rates IMHO.

One could argue that there has been economic hardship for teachers as well, and that they might need to raise rates to compensate for that.

[lostinidlewonder]

If disposable income goes down so does demand for non essentials. Raising your prices risks you losing students which you need to replace and with many people out of pocket it is more difficult to find new students. It seems like basic economics.