>She mentioned that she is 1/2 hour outside of Seattle. . .That is a
metropolitan area, similiar to the Bay Area where I live. My current teacher
charges $65 an hour, so suggesting that someone with 20 years experience in
a
major metro area charge $40 - $50 is extremely reasonable.<
Maybe her area has too many experienced, or less experienced but as good or
better teachers who are already popular among those who can afford to pay
$40-50. Another problem is that nobody likes such a big increase so
suddenly, so she may end up losing many students who could afford that but
become outraged.
But it's true that her price being so cheap may be a problem: it was for no
other reason that the word "cheap" has another connotation in English: she
may not have students now who could afford to pay that higher price because
they associate that low price with low quality and so are having classes
with another teacher. If the price goes up her current students may stop
having classes but she may have a hard time replacing them.
I don't teach singing, but as a private teacher I have a similar problem.
What most teachers I know who are in the same situation have concluded is
that we must vary the price according to the student, as it's better to have
little than no money at all. I've had students who paid twice as much as
other ones who had the same class ( I think psychologists have to do that a
lot too ). I've found a way to justify the different prices: I offer
different "packages", like lower price but no replacement, no short-notice
cancelation, cash, "extra charged" extra material,... anything that makes MY
life better and theirs stink if they pay less.
Anyway, I wouldn't change my current students' prices so dramatically as was
suggested. I'd set the new prices/packages to NEW students only. If they say
the one who recommended me pays less, I'd say that was my old price/package
and it's not valid for new students. Make sure you really have new students
accepting the new conditions and then start changing your old students'.
Best wishes,
Caio
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