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Question: Hi Micki, I was hoping for some advice about an idea that I have regarding a promotional discount type of thing.  I'm a math and biology tutor mostly for upper level high school and college students. 

For me during this time of year my appointments drop off for a while. They always pick back up during finals, midterms, or big class project times, that's when I get really busy. My question is this, I was thinking of offering a sort of "buy 3 get 1 free" deal for those tutees who stick it out with me all year.

Is it a good idea, or is it too similar to the coffee shop punch card type of promotion?

Thanks for the advice,

Jim in Anaheim

Answer: Hey, there, Jim, thanks for the question!  The way I see it, people love a good deal, especially when that good deal involves great tutoring.  Since you say you are busy during the "on" season of classes, it sounds to me like you are a good tutor with a good client base.

So, yes, I would definitely implement your "buy 3 get 1 tutoring session free" plan - it is a great idea!

I also do not think that it is gimmicky in the least, and here's why - when you have people who want to hire you, and who like your tutoring services, they are already customers (albeit sometimes infrequent).  They will want to hire you anyway, this is just giving them incentive to hire you more often. 

Giving customers a loyalty discount is a great business move for you (securing a steady stream of clients) and for them (they are rewarded for their loyalty). 

If you are also offering this to new tutoring clients, it is still a good business move for both you and your tutees.  You are ensuring more steady clients, and your new customers will be more likely to stick with you for longer periods of time due to the nature of your discount (must buy 3 to get that 1 free session). 

Question: Hello, Micki, I have a fast question about my tutoring rates.  I've been charging $10-$15/hr. for about 20 years now --- should I up my rates? I'm having some trouble making ends meet nowadays, and am wondering if increasing my hourly rate is a good idea or a bad idea.

I have anywhere from 12-20 tutees depending on the time of year --- finals, midterm season, SAT time and other academic spikes happen throughout the year for me. Also, I tutor chemistry and math.

Thanks. Beatrice

Answer: Hi, Beatrice! Thanks so much for your question. The short answer is, "Definitely, increase those rates!"  In my area, math and chemistry tutors charge their clients anywhere from $25-$60 per hour, and $35-$40 is about average. 

Do a quick search online for your type of tutoring services, and see what types of rates pop up for your local area.  There is no hard and fast rule for how much you increase your rates, of course.  You can charge towards the bottom of the scale, towards the top, or start low and increase over the next few years, it is up to you. 

That said, I understand your hesitation about raising your tutoring rates.  You have loyalties to the tutees who have stuck with you all these years, and you may even be worried about losing business. 

Regarding your loyalties to long time tutees (and likely friends, by now), simply talk to them up front prior to the rate increase taking place.  You could even make up a nicely printed rate sheet explaining the new prices. 

Be open, honest, and friendly.  Mention inflation, cost of living, and the necessity of increasing tutoring prices.  Gauge their reaction as you talk, and (if necessary) set them up on a lower or sliding pay rate system so that you are charging them a little less than your new rates. 

Truth be told, I usually do this with all of my long term clients, because I think that it is important to reward loyalty. ** (bolded because I think this is a really great idea for any tutoring business!)

As for losing tutees, I can't lie: you may lose a few clients.  Keep in mind, though, that you will be making more overall due to the higher rates.  For example, let's say you have 2 weekly tutees, each $10 per hour clients.

You raise your rates to $35 per hour, 1 tutee sticks with you, 1 cancels tutoring services.  You are now making $35 for 1 hour of work (and 1 tutee), rather than $20 for 2 hours of work (and 2 tutees).  You have an extra $15, and an extra hour, every week. 

Of course, these are all just numbers, and tutoring is all about people.  So, if you have a tutee you really want to help, and you wish to keep a low or sliding rate for a tutee who cannot afford it, by all means go for it.  Just be careful not to do it too often!