Home tutoring pricing strategy

Everyone has his own value, just like commodities. For example, when an insurance company sells life insurance to a customer, it will evaluate where the value of this customer lies and whether it is worth insuring such a high-value policy?

When customers make a purchase decision, they will certainly assess their own economic ability first, and then consider whether the cost to be paid matches the value of the product itself. Regardless of whether the product is physical or tangible or intangible services.

Providing value that exceeds the quoted price

My expertise is to express known concepts and knowledge in a simple and clear way, and adjust according to the essence of each student so that students can gain rich benefits. Therefore, the "product" I sell is "teaching". Based on my investment in myself (continuous learning, research, further studies), plus teaching effectiveness, I believe I have very high value!

This is not comparable to regular home tutors who charge 100-200 per hour. And I am willing to take this as my sole source of income, not as a "part-time" job. I am not only a "full-time" teacher but also a "professional" one. When I am willing to do this and I have corresponding value, I won't look for families with average income. The target clients I seek are those with strong economic capabilities and incomes at the top of the pyramid. I set this level of parents as my potential client group, not only because of their high income, but also because of their high status, broad horizons, and usually wider perspectives. They tend to focus more on the long-term learning outcomes of their children, so they are more likely to recognize my teaching philosophy.

When I evaluate that my value has reached a certain level, I will adjust the price upwards. The result of doing this is that there will always be parents willing to pay high prices to hire me to teach their children because they think my value exceeds the price I quote.

Why not ask the parents of existing students to keep introducing new students? Isn't that more convenient?

If you observe, you will find that the friends of parents are usually at the same income level. If you want to find parents with higher incomes, you cannot rely solely on parental recommendations. Moreover, even if the parents introduce you, they will certainly compare the prices you offer, so you cannot offer a higher hourly rate than before, which would prevent you from pursuing higher income!

Therefore, the best way to increase your price is to constantly enrich yourself and improve your abilities in all aspects. When your value far exceeds the price, you can adjust your price upward and let the market test it. If the market (tutoring students, value) recognizes your self-assessment, then you indeed have the right to raise your price.

If several parents find you through seeing your advertisement, but give you low evaluations during the teaching process, or even dismiss you, you need to reflect on whether your pricing is too high due to overestimating your abilities, and should adjust accordingly. When you adjust to a new price, if your schedule quickly fills up and you receive good reviews, then when a lower-paying tutoring job ends and you have new available timeslots, you can try raising your hourly fee again.

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