Thread: Private lesson packages - pricing question

I put this out on my local guild's list serv and I didn't get a good response. Can you help?

Do you offer discounts to students who book more than one hour of private lessons? If so, what is your fee?

I usually charge a flat rate of $30 per hour for privates (plus travel, if applicable), but I have a student who wants to buy a bunch of classes up front. How should I structure my pricing? What do you do?

Thanks!

We charge $50/hr, and on the rare occasions such as you describe a 10%-20% discount is offered. But these private classes are held in our studio during non-prime hours. If you have to pay someone for studio time for the private lessons, you have less leeway.

we only give discounts if a class is taken along with the private.then the discount is on the class price only. my overhead is very low owning the studio.

If a student was booking a series of private classes, then I think I would be willing to offer her a discount. My normal charge is £30 per hour, though I usually suggest a private class should be more than an hour, usually 1½ or 2 hours. I'd be happy to offer "Book 4 hours & the 5th one is free", and when I say book, I mean Pay For!

Originally Posted by andalee-oriental

I put this out on my local guild's list serv and I didn't get a good response. Can you help?

Do you offer discounts to students who book more than one hour of private lessons? If so, what is your fee?

I usually charge a flat rate of $30 per hour for privates (plus travel, if applicable), but I have a student who wants to buy a bunch of classes up front. How should I structure my pricing? What do you do?

Thanks!

I have two levels of basic pricing for private lessons, $50/hour for non-students and $35/hour for my currently enrolled students. They can also purchase in a "session" of 3 private classes (1 hr. each) for a discounted rate of $140/session for non-students and $100/session for currently enrolled students.

If they would like to purchase a regularly scheduled private lesson time in more than the 3-hour session block, then I will give a 10% discount on up to 10-hours. I haven't had anyone want to pre-schedule more than 10, but I would give a 15% discount to anything over 10.

For my private classes, I allow 1 to 3 students so costs can be split between up to 3 people if they want to schedule small group lessons.

Thanks ladies!

I charge $60/ hour, but that includes $20 studio rental fees- I am willing to teach a private elsewhere, if it is a mutually agreed upon & suitable location, but I only discount it to $50, not $40, because it is more of a hassle for me to go to some other place- the studio is very conveniently located down the street from my babysitter!

I do a 10% discount for multiple bookings, slightly deeper discount for one long term student who has supported me for years, and is on an annual payment contract for other classes anyway.

The last few weeks I've had a student coming to me twice a week and I've been charging her the set rate of $65 per hour (this is in line with the private-lesson 'discount' rate at the studio where I teach). I pay the studio $15, so I keep $50.

I'd like to give her more of a discount but I feel like the number is not really set by me. Would it not be undercutting to offer her less than the rate of everyone else at the studio?

Until I get my home studio up and running (fingers crossed for next year?!) I guess she's going to have keep on shellin' out. ;P

I like the idea of packages. Book 3 or more privates, get 10% off, book 6 or more get 20% (or some such offering). Bea's Buy 4, Get 1 Free promo is great too.

I don't, but my teacher does. She charges $65/hr for privates, but you can purchase a 4 hour punch card for $200. However, the punch card is only good for a month.

I charge based on the level, what the student is trying to achive, and if studio rental or travel is needed. (i.e. without studio rental prices are: Basic is $30/hr, Int. is $35-40, and Adv. is $45 and up.)

Reminds me... I should market these more! Duh! *face palm*

Originally Posted by nasila

I'd like to give her more of a discount but I feel like the number is not really set by me. Would it not be undercutting to offer her less than the rate of everyone else at the studio?

I'm so glad you mentioned this, as I've been wondering about undercutting in regard to private lessons.

Basically, does it exist? Or is it fair for a teacher with less experience to offer private lessons for a lesser cost? I was surprised to find that the owner of my studio offers private lessons for the same cost as one of the teachers, who I feel has far less to offer. But on the other hand, if she charged less, would it be undercutting? And does a change of location (giving lessons at her house rather than at the studio) make a difference?

My teacher advertises a rate of $65 for a private. For her students though she only charges $35, and the session will go on way past an hour, until she has another commitment. She loves her students and is incredibly generous with her time.

Originally Posted by SpicyThai

I'm so glad you mentioned this, as I've been wondering about undercutting in regard to private lessons.

Basically, does it exist? Or is it fair for a teacher with less experience to offer private lessons for a lesser cost? I was surprised to find that the owner of my studio offers private lessons for the same cost as one of the teachers, who I feel has far less to offer. But on the other hand, if she charged less, would it be undercutting? And does a change of location (giving lessons at her house rather than at the studio) make a difference?

Just like with performing, there can be a lot of hidden costs in private lessons. There is a good local instructor here that only charge $30/hour- but they have access to a studio which only charges $10/hour for space, & I don't know how she organizes her schedule around it. I pay $20 studio fees, usually have to drive into town especially for a private lesson, so add in gas & travel time, and personally, I need a babysitter's service for 2 hours too, unless it happens to be scheduled when hubby can watch the kids. I do spend time preparing for a private lesson, just like I would for class, and I need to be there before & after a scheduled appointment by just a bit- figure minimum 1.5 -2.5 hours of work per hour long lesson(1.5 is just time at the studio having doors open), depending on what we're working on & whether I am doing a video critique. factor in a portion of my annual fees for licensing, insurance, advertising, etc. & the cost is that little bit higher. If you look at it that way, $60/lesson is more like $10/hour.

I do not in any way begrudge those who charge less than I do if they have less expensive accomodations & no kids, there is just no way I *can* do it for less. I just want everyone to be aware of what the costs really are & ask themselves if it is worth it when you break it all down. Sometimes, even if you recognize that you are barely breaking even with discounted prices, when you are paying monthly rather than hourly rent those discounted rates are what keep the doors open & it's worth it anyway. There are so many factors that play into running a business!

I am also fully aware that local lessons for music & ballroom privates are $50-$120 an hour, so I feel like I'm in line with what folks in comparable professions are charging. I guess if it were me, & I had an opportunity to use a less expensive venue like a home studio, I would probably emphasize that it is a discounted rate & keep charging the higher rate at the other studio to stay in line with the other instructors there.

PLEASE- no matter where you are teaching, make sure it IS a safe venue and that you have your insurance up to date for that location!

That's a good point about insurance, Lara. What if someone gives lessons in their home? What kind of insurance is needed there?

So do you think a less experienced teacher giving lessons at her own home should be charging less than a studio owner who is giving lessons at her own studio (no childcare costs with either)? I somehow feel that she should have been, but wonder if she felt that doing so would have been undercutting, since the owner's rate is advertised on the website.

If you are teaching, you should be teaching something you know well. I would hope that a student seeking private lessons is doing so because they want to learn from you, particularly, to gain the knowledge you have to share. Why is that worth less than a more experienced teacher's hour? They are paying for your particular expertise, whatever field that expertise happens to be in (beginning technique, performance skills, choreo polishing, regional styles, etc.) So, no, I would encourage you not to undercut your own self because you feel insecure about what you are teaching. Make sure you can teach what you propose to teach & make your prices reflect what it takes to keep you in business, both covering your expenses & still making it 'worth it' to you in compensation for your time & effort. Undercutters often disappear after a while, not because undercutting is so unethical, but because they figure out that the energy vs. cash flow exchange isn't sustainable.

Originally Posted by SpicyThai

So do you think a less experienced teacher giving lessons at her own home should be charging less than a studio owner who is giving lessons at her own studio (no childcare costs with either)? I somehow feel that she should have been, but wonder if she felt that doing so would have been undercutting, since the owner's rate is advertised on the website.

This starts getting into the same ethical territory as performance undercutting. If you are a senior member of the dance community and someone of acknowledged prestige, you can command a higher rate than a dancer with less seniority and reputation. Otherwise, you are either competent enough to ask for at least the "reasonable and customary rate" for your area (plus extra if you need it to cover your base expenses), or you aren't qualified to be giving private lessons in the first place. In other words, Raqia Hassan can charge more than you do, but you shouldn't charge less than the minimum for your community, and you should charge enough that you don't lose money giving the lesson.

That's exactly the line I'm trying to figure out, Tourbeau. It is a tough one to puzzle, between worth and ethics.

I do feel that some teachers are worth more--ones with more experience, more teaching ability, and a better place to have the lesson. But it's a double-edged sword. If Amazing Teacher charges $60 and Adequate But That's All charges $40 because she doesn't have as much to offer, is that a compliment to Amazing Teacher's worth, or a dirty insult as an undercut?

Very thought-provoking.