S/O on tutoring pricing

[Daria]

I tutor about 10 hours a week, in addition to teaching full time.  .  I mostly work with kids with disabilities and complex profiles, and have a lot of experience and education, my prices reflect this.  

 

About a year and a half ago, I heard about a family who was looking for a tutor for their kid.  The child had a very low incidence condition, and needed specialized techniques. This kind of expertise is rare, because the child's profile is rare.  I had some knowledge of these techniques, and was interested in doing the research to learn more, but I wouldn't say I was an expert, so when the family asked for my prices, I gave them a price per session that was a lot less than I usually charge.  I also often stay longer than an hour.  Because of this, and because I've done a ton of research, and attended several workshops for ideas on how to help this kid, I'd say the family is getting their money's worth from me.  I still, however, feel that charging "non-expert" rates is appropriate.  However, I've never told this family they are getting a discount.  I think they'd find that awkward.  

 

The family has recently sent me a couple of referrals.  These are not kids with the same condition.  They are kids who are more like the majority of my caseload.  Money's really tight right now, and I can't afford to take another "discount" kid.  I could only see them if I charged my regular rate.  

 

What do I say when I call them? I usually have more referrals than I can fit in, so one option would be to simply say "I'm not accepting new clients at this time", but I'm wondering if there's another option.  

 

 

[SparklyUnicorn]

I'd matter of fact tell them your rate.  If they don't ask then bring it up that your rate is X-amount.  Sure they could go back and talk to the client that referred them and they might compare, but so what.  Lots of people will raise their rates in general, but keep the same rate for an ongoing client. 

 

 

[SparklyUnicorn]

I suppose you could even try to put a positive spin on this by saying my usual rate is X, I give a discount for referrals and that rate is X.  Doesn't matter if this matches what anyone else is paying.

 

 

[Katy]

I would tell the family that's giving you referrals that you appreciate the referrals, but you have raised your rates for new clients, so please do not discuss costs with other families.  You can tell them whatever your happy-to-do-it price is for other families if they really want to know the new rate.  They get the grand-fathered in rate for the time being.

[Daria]

I would tell the family that's giving you referrals that you appreciate the referrals, but you have raised your rates for new clients, so please do not discuss costs with other families.  You can tell them whatever your happy-to-do-it price is for other families if they really want to know the new rate.  They get the grand-fathered in rate for the time being.

 

That would be a lie, though.  I'm not comfortable outright lying.  

[SparklyUnicorn]

That would be a lie, though.  I'm not comfortable outright lying.  

 

So what is the truth?  You lowered the usual rate because you had less experience with the particular methods used with the current client?

 

If you insist on being exact, then say that, but really that doesn't seem a whole lot different.

 

I wouldn't ask anyone to not discuss rates though.  I don't think you can control that or expect it.  Just be very matter of fact that this is your current rate for new clients.

[Arcadia]

Since you have tutored the child for 1.5 years, I would just tell the referrals the current rate you need to charge. If I ask a friend for a referral, I don't expect to be charge the same rate by the tutor for one to one tutoring unless the friend started recently with the same tutor for the same requirements.

[Mom22ns]

I would tell the family that's giving you referrals that you appreciate the referrals, but you have raised your rates for new clients, so please do not discuss costs with other families.  You can tell them whatever your happy-to-do-it price is for other families if they really want to know the new rate.  They get the grand-fathered in rate for the time being.

 

I don't see this as a lie. You are changing your rate for new clients with that condition because your expertise has changed. So, I would ask the family to please not share their rate because you will not be able to give it to new students. They should understand that and you can say just enough that it remains true.

[Laurie4b]

I tutor, too, and have similar practices as what you described. 

 

You could say to the new family: for x kind of tutoring (the kind they need), my charge is ____. Since the other client doing the referral is getting y kind of tutoring, it's apples to oranges. 

 

x kind of tutoring could also be tutoring for which you are at least the second client of that type, so if the referring family happens to ask why their rates are lower, you could truthfully say: I charge less for the first client I undertake with a given situation. 

 

 

[Daria]

I don't see this as a lie. You are changing your rate for new clients with that condition because your expertise has changed. So, I would ask the family to please not share their rate because you will not be able to give it to new students. They should understand that and you can say just enough that it remains true.

No, the new referrals are similar to my other clients, not to this kid. I have charged this rate, with slight adjustment for inflation for 10 years.

 

The rate I charge my other families, comes out to about 2.5 times the hourly rate I charge this kid, so its not just "my rates went up".

[TX Native]

I would quote the rate you offer to other clients with the same needs. I would not explain any price differences to the new referral or the old client unless asked. If asked, you can say the truth that you have said here. "Existing client's child's tutoring needs are different than your child's tutoring needs. My quoted rate is based on what I charge current clients with your child's specific needs." If the existing client is making referrals based on your performance, the price shouldn't be an issue if your price is fair. I suspect your price is fair if you have so many referrals from others. If the existing client is making referrals based on your low rates, it is best to explain to that client why her child is charged less than the majority of your other clients.

Edited April 29, 2016 by TX native

[maize]

"My current rate for new students is ...$"

Edited April 29, 2016 by maize

[AimeeM]

I agree with Maize. 

I am fully aware that I may/often pay more for a tutor for one of my children with learning differences, than for ones without. It's no different than paying a sitter more to stay with Marco than I do for them to stay with Nico. The tutor or sitter knows this and I know it. 

 

"My current rate for new students is..." <---- So, what Maize said

[lmrich]

Just keep it simple. My current rate for new students is... the end. 

I have lots of different pricing. If you have been my student in a class it is one price. If I do not have a relationship with you, it is more. If I have to travel, it is more. Etc.. 

 

[BlsdMama]

Frankly, if you're comfortable I would say exactly what you said here. I think it's reasonable, well thought out, and professional. Is there a reason you would not explain?

[Daria]

Frankly, if you're comfortable I would say exactly what you said here. I think it's reasonable, well thought out, and professional. Is there a reason you would not explain?

 

Saying what I wrote above to either set of parents brings up confidentiality issues.  It involves comparing both kids, and labeling one as more complex.  I'm certainly not going to tell the parent of the new kid "Her kid is more challenging, and requires specialized skills, so I charge them less." but I also think that saying that to the parents of my current kid would be both unethical and painful.  

 

I've also been the parent of a special needs child who needs to make difficult decisions about what therapies and treatments they can support.  I know that it's really hard to feel like X would be the best therapy or the best provider, and to acknowledge that it's out of reach.  A few months ago, my son's therapist recommended a treatment plan that would cost about $3,000 a month, and I started to cry in her office, because I knew I'd have to say no.  Because realizing you can't afford the "best" for your child with special needs, and have to settle for "regular" or even the "bargain basement", isn't quite the same, emotionally, as wishing you could shop at Nordstrom's when you have a Target budget.  So, I can imagine that hearing that your friend's kid got this great treatment that you might actually be able to afford, and then finding out that you can't afford it, would suck.  I have a lot of empathy for that, and would usually say something like "I usually charge X but it's negotiable if that's outside of your budget", except that right now I really need the full fee to pay that not quite $3,000 a month therapy bill.  

[Daria]

I agree with Maize. 

I am fully aware that I may/often pay more for a tutor for one of my children with learning differences, than for ones without. It's no different than paying a sitter more to stay with Marco than I do for them to stay with Nico. The tutor or sitter knows this and I know it. 

 

"My current rate for new students is..." <---- So, what Maize said

 

Just to be clear, from what I know about your boys, this situation would be more like the reverse, and I was charging you less for Marco because I thought he was someone I could learn from, or because I thought he required expertise I was still developing.  Although, from the little I know about Marco, he'd be within the range of kids I usually work with.

 

One thing I hadn't thought about is whether the parents would think that I was charging more for their child because he was more difficult.  Probably not, since we aren't talking about subtle differences between kids.  

[AimeeM]

Just to be clear, from what I know about your boys, this situation would be more like the reverse, and I was charging you less for Marco because I thought he was someone I could learn from, or because I thought he required expertise I was still developing.  Although, from the little I know about Marco, he'd be within the range of kids I usually work with.

 

One thing I hadn't thought about is whether the parents would think that I was charging more for their child because he was more difficult.  Probably not, since we aren't talking about subtle differences between kids.  

Ah, I hadn't caught that. 

Still, I think you need to explain nothing - just stick with, "This is my current rate..."

[Mom22ns]

I did misunderstand originally, but see now how that explanation doesn't hold. And of course, I do understand the need for confidentiality. I would ask the referring mom to not reference rates because my current rate for new students is higher than her rate. No further explanation should be needed. She will probably just be happy she is getting a lower rate. If talking to a newly referred family and they expected a lower rate, I would just say my current rate for new students is "___".  I would only offer explanation if asked, and then a very simple explanation of different kids - different issues - different rates.