Determining what to charge for your tutoring business can be a daunting task. There are many factors to consider, and it can be difficult to find the right balance between what you need to make in revenue and what potential students or their parents will be willing to pay. In this article, we will explore some of the things that go into determining pricing structures for tutoring businesses, including the average earnings of tutors, what factors affect your pricing, and how to create a pricing structure.
Average Earnings Of Tutors
According to industry statistics, the average hourly rate for tutors is $25-$58 per hour. This number can vary greatly, depending on a number of factors; including experience, location, grade level, and the subject being taught. In general, tutors with more experience or who teach in-demand subjects at higher grades can charge higher rates.
Factors That Affect Your Pricing
There are a number of factors that you will want to consider when setting your prices. Some of these include:
The Local Competition
If there are other tutoring businesses in your area, you will need to take them into consideration when setting your prices. You don’t want to set your company’s hourly tutoring rates too high or too low in comparison to what your competition is charging.
Experience of Your Tutors
Your experience and that of your employees is one of the main factors that will determine your rates. Tutors with more experience in teaching higher education courses or courses in a university or graduate school can typically charge significantly higher rates than those tutors who are just starting out.
The Subject(s) You Are Teaching
The subject(s) you are teaching will also affect your hourly rate. In-demand subjects, such as math, science, or STEM courses, will typically command higher rates than less popular subjects. The average hourly earnings for tutors per subject can be found below:
- Math – $36.00/hr
- Science – $40.00/hr
- English – $29.00/hr
- Social Studies – $27.00/hr
The Age Of Your Students
The age of your students can also be a factor in determining your rates. Tutors who work with high school or college students can typically charge higher hourly rates than those who work with K-6 children.
Private vs. Group Tutoring Services
Another factor to consider is whether you offer private or group tutoring services. Private tutoring sessions typically cost more than group sessions. In private sessions, the tutor focuses on only one student, so that student receives the full attention of the tutor. In group sessions, up to 5-6 students work on assignments at the same time, which lessens the amount of time the tutor is actually working with one student. This dilutes the effectiveness of the tutoring, but it does offer a less-expensive option for tutoring services.
How To Create A Pricing Structure
Once you have considered all of the factors mentioned above, you can start to create a pricing structure for your tutoring business. There is no one-size-fits-all solution, so you will need to experiment to find what works best for you and your students.
There are a couple of models to consider when creating your pricing structure:
- hourly rate – you can charge by the hour, and students will pay you for each session they have with you.
- package rate – you can also offer packages of tutoring sessions at a discounted rate. This is a good option if students are looking for more than one session.
- group rate – as mentioned before, you can also offer group tutoring sessions. This is a good option if you have multiple students who are interested in the same subject.
Pricing your tutoring business doesn’t have to be difficult. By taking into consideration the factors mentioned above and any competitive tutoring services near your location, you can find a pricing structure that works for you, your students and their parents.