Deciding on prices can be one of the hardest things for tutors in Canada. Should you charge low to get more clients or charge high to seem like the better choice? In our society, more expensive things are usually seen as better quality or better outcomes. Still, we know this isn't always the case. It's even harder to decide on tutoring because it's your source of income. It would help if you made enough to cover your expense and have enough money for your bills.
If you ever thought about becoming a tutor, are a tutor now, or are stuck on your own prices, this article is for you. Deciding got your prices isn't an easy task. It comes down to a few factors that will discuss.
- All music tutors will have to go through setting their prices. Source: Wes Hicks Mel, Unsplash
Deciding on Your Prices
Step 1: Your Expenses
The first step in deciding on your prices is figuring out how much you spend each month. Tutoring can be very low to get started, but even some costs are still money out of your pocket. For instance, you might buy materials, software, or anything else that assists in your tutoring. Yes, these will all be business expenses and potentially write-offs for tax time, but it's still money your spending. There is software out there that can help with your expenses. Check some out here.
The other part of your expenses is how much money you need to live. For example, tutoring may be your only source of income. Write out your bills, rent or anything else you pay for. Writing down your other costs like running to Tim Hortons every day shouldn't necessarily be on that list. It would help if you covered your own main expenses first and foremost.
Step 2: Experience level
The next part is to determine your experience level. Have you been teaching music for five-plus years? Are you just getting started? What makes you different from somebody else? These are all questions to ask yourself. More experience will mean a higher rate. You'll want to be paid for your experience and knowledge level. It allows you to charge more.
Step 3: Income Level
We're not talking about your income level. It's your communities. Charging an absurd amount for lessons when the community you live in is average. You may not have people who can afford your lessons. The perfect example here is personal training. The average income in Toronto is fairly high. The average personal training session fits around $100 an hour, but if we look at a small-town personal training, it's right around $40 an hour. If the small town were to charge 100$, very few people would afford the session.
Step 4: Your Clients
Your ideal clients will take effect into pricing. Are you working with adults that work a full-time job? Are you working with college students who don't have a lot of money? It's the same for income. Your clients need to be able to afford your sessions.
Step 5: Competitor Prices
Now, it's time to look around at your competitors. Try to stick with music tutors in your community. For all the reasons we mentioned above. Look at all the steps and see what they're charging. You'll have a good idea of what you need to charge.
- Get organized about your expenses. Source: Kelly Sikkema, Unsplash
Set your Prices
Now, you can officially start creating your prices. At this point, you should have all your expenses sorted out, your income level, experience level and your clients. Don't be overwhelmed. Let's start simple. The average music tutor costs are $40 an hour. Looking at the average price, it takes the average of everything, including experience. If you have less experience, you'll want to charge a little lower, or most adventures charge higher. Use all the factors above to set your prices. If it is too high or too low for one of the steps, adjust accordingly.
Should you Charge Low to Get More Clients?
The answer here is no. Yes, you'll charge lower at the beginning of your career, but only because you don't have the experience or as much knowledge as someone with more experience. Purposely charging lower to get more clients can have more negative results rather than positive results.
Charging too low can ask a lot of questions. Clients may ask themselves why your prices are so cheap. Think about when you buy a car. If you were to buy a new car for way undervalued, you wouldn't think you're getting a good deal. You would think you're getting scammed. The same can go for tutoring lessons.
Charging too high can also have negative annotations. For starters, you may not be able to get any clients if your prices are too high. This could be either because of the income level in your community, or you can't bring the value to charge more. The music tutors that charge higher are the ones that have the experience and testimonials to back up their sessions. This is why we created this guide to have a fair shot at setting your own prices.
- Charging lower doesn't mean more clients. Source: Stefany Andrade, Unsplash
Don't Stress About Setting Your Prices
By following our guide, you can have a fair shot at setting a reasonable price based on the factors. Try not to stress when deciding on your prices. It's something all tutors have to go through. It can be stressful going through your expenses and the accounting software you might need. Just try to have a calm situation when you think about money. Have nothing going on for the rest of the day and go through everything slowly. You don't need to rush this process. Setting your prices doesn't have to stress you out as long as you don't let it.
On the other end of setting your prices is getting paid. Talking about money with clients can be a sensitive topic, but you need to bring up something. At the end of the day, you need to get paid. Setting up contracts with payment information can be a good idea to avoid any confusion between you and your clients. It's always best to figure out this in the beginning. Using contracts is a good way to protect yourself from any losses. It can also ensure your clients understand the payment structure.
Talking about money can bring on some uncomfortable feelings, but you need to get paid. Your tutoring income may pay for your livelihood. It's how you pay your bills and take care of yourself or your family. Setting your prices ties into this because charging what your worth is important. If you feel good about your prices, you should have no issues bring up your rates. You know the value of your work and the skillset you bring to the table.
Start Charging Your Prices
Now it's time to offer your rates in Canada. It can often be the last step for tutors. It's an exciting time once you have everything set and start offering lessons to people. Having everything out planned out before your first client can lead you on a smooth path. There will be no confusion about prices and how to get paid. You can start charging your prices and finally make some money as a music tutor.
Hopefully, this guide has given you the confidence to set up your prices and offered some valuable information along the way. We know it's not an easy step, but it's one you have to make.
For more information about becoming a music tutor, check out other articles.
- How to Find Students As A Music Tutor?
- Qualifications for Becoming a Music Tutor
- How to Plan Music Lessons for Tutoring?
- Becoming a Music Tutor in Canada
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