Price Challenge – What are the Tutoring Rates for Live Classes?

charging for online tuitions

As digital literacy accelerates and digitization sweeps across industries rapidly, it would suffice to say that we are standing on the threshold of a technological revolution. State-of-the-art technologies will determine and define the way forward, and the education industry will not remain untouched.

As a result of the changes engineered by the pandemic, online tuitions have lately garnered a massive foothold and have invaded almost every home. This trend will only climb the ladder in the coming years. The post-pandemic period will also increase work-from-home and remote opportunities that tutors can effectively exploit this opportunity to their full effect. Both financially and intellectually, live class coaching can rapidly catalyze your success, strengthen your knowledge base, and help materialize your ambitions- all from the comfort of your drawing rooms.

Due to the numerous advantages of online learning, such as cost-cutting, zero travel expenses, and immense flexibility, online tuitions have become the first choice of several tutors. However, while other parts of the equation can be worked out well (marketing, advertising, choice of subject, etc.), one still needs to ascertain your charges . If you are also looking to establish a similar business but find yourself in a quandary vis-a-vis devising a just price structure, worry not. This article will delve deeper into this question and cover all the aspects that can help solve this issue. After all, you are selling your services, knowledge, skills, and years of experience, and your paycheques must be commensurate with your dedication to your work.

It is pertinent that your rates are economical enough to attract a large number of students and keep your business flourishing without draining you out. So, how do you estimate the correct tutoring rates? What are the factors? Which figure is too high? Which one is too low?

Let’s find out below:

What Are The Determinant Factors?

How you price your business is not an isolated matter and, instead, depends on multiple interrelated factors. When looked at comprehensively, these variables determine a base price for your services and ensure that your costs are neither too high nor too low. Thus, while setting up a pricing chart and preparing your pricing policy, the following points should take center stage:

1. Location

tutoring rates depend on where you are on the globe

Study your consumers. Find out the demographics. Maintain a record. Where do most of your students come from? Do they come from Tier 1 or Tier 2 Indian cities like Delhi, Chennai, Kolkata, Bengaluru, Mumbai, and the likes? If yes, they will not have significant issues paying you an amount ranging between INR 1500-INR 2000 per hour. However, if we shift to non-metropolitan cities, the purchasing power of the consumers alters significantly too, and you will need to lower your prices a bit. Hence, it becomes essential that you figure out where the significant chunk of your consumer base hails from. Key takeaway? Different cities=different prices.

2. Demand and Complexity Level of the Subject

Data metrics depicted by a laptop and a magnifying glass

This is a critical question that you must introspect over. How many students are looking for your expertise in a particular subject? How difficult is it to find SMEs for that subject? How competitive are things? 

Generally, as things stand today, Science subjects such as Physics, Chemistry, and Biology tend to attract the maximum number of students, and tutoring rates vary accordingly. Similarly, Math (especially for grades 9th-12th) is much in demand, and you can expect a higher amount of money while helping kids crunch numbers. Moreover, as complexity rises, the prices will increase too. So, a lower amount for K12 students and a higher one for college-goers.

In addition to that, a sizable number of Indian students, especially in their elementary years, keep looking for quality English teachers to help them develop a grip on this global language. This also stands true for students transitioning from school to college and looking to brush their skills in English before stepping out into the real world. Hence, you can expect to levy tutoring rates ranging from INR1500 to INR 2000 per hour for these subjects and gradually increase the price once you get the hang of things and settle into the system. Naturally, students will not be attending the classes each day, so it is also advisable to roll out some package/discount offers so that 10-15 classes a month can be covered in the package without putting excessive pressure on the students’ finances.

3. Your Experience and Qualifications

person with degrees and laptops and tablets

One of the first few things students will ask you in the trial/demo class is your qualifications, certifications (if any), degrees, and years of experience under your belt. Thus, it cannot be stressed enough that the more experience you have, the more money you can make. This is one of the many benefits of online classes; if you are a retired teacher looking to restart your career or just spend some time with your subject and students, there is nothing better than an online tutoring business. 

When students see that you have been teaching for, say, 5-7 years, their apprehensions will be eliminated automatically, and they will be easily convinced to pay what you are worth. On the other hand, if you are a first-time teacher, start with a lower fee, and increase it with time as you garner expertise on the way. Having said that, do not let your lack of experience discourage you from stepping foot into the market. Everyone needs to start somewhere, and better late than never. Whether you are an expert or a beginner, the common denominator is your unwavering passion for education and your innate ability to connect with your students. 

4. The Preparation Time

alarm clock for time

Your fee can also hinge on the amount of time spent preparing for your lessons. Not every subject has the same demands, and thus, the cost would also vary accordingly. For instance, while teaching Math or Physics, you will be expected to solve specific numerical exercises well in advance. Not just that, for subjects like Economics or Psychology, you may also need to prepare some Powerpoint presentations, numerous notes, or delve into some relevant research papers. All of this is demanding, time-consuming work and is directly correlational to your payment. Some topics require a lot of research beforehand, and thus, the charges can be increased if you have to spend hours reading up on a topic before the online class. As a teacher, it is, of course, of vital importance that you do not come to the class sans any preparation, and meticulous, timely research will accentuate students’ trust in you, leading to better business in the long run.

5. Marketing and Other Overhead Expenses

Screenshot of a phone showing popular social media apps

After monetizing your skills, the revenue you will earn will not simply go to your savings accounts but will also lubricate your business. Even though an online setup means that you save on some operational costs such as rent, electricity bills, staff salaries, etc., you will still need to shell out some money each month to pay for advertising and marketing costs. Therefore, you should ensure that you collect significant revenue so that your advertising budget doesn’t suffer. 

Of course, there are Wifi costs involved with online classes, and you will need good laptops/phones as well. Another predicted expenditure involves buying premium online tutoring tools such as whiteboards, payment processing, video conferencing, etc. However, if you are teaching through the WISE app, these costs will be entirely eliminated since the app provides you with all these facilities absolutely free of charge, thus saving a good amount each month. Where does this amount go? Straight into your profits.

6. Competitors’ Rates

fees for live classes

Even though you do your best, read and understand the market trends and the consumer demographics, and cover all your bases, you may still find yourself stuck at the crossroads. Why? Because you are yet to study and understand your competitors’ pricing, which directly determines yours. Online tutors with the same level of expertise and experience are the ones you directly compete with, and it is pertinent that you find out their pricing slabs.

For example, if someone similarly qualified has tutoring rates of INR2500 per hour, but your prices touch INR3000, a chunk of students might prefer them over you. Clearly, this is not the situation you want, and to avoid it, you must research well in advance to charge a fair amount. Once students start providing good ratings and encouraging Google reviews, it will open pathways for you to increase the fee after one or two successful academic sessions.

As we just saw, how to charge for online classes can be a tough decision to make, but if you research well, study all the factors, and make an informed decision, the experience will be extremely hassle-free and increasingly rewarding.

To gain more clarity on setting up your live class coaching business, you can also refer to our corresponding article on How To Start Your Own Tutoring Business.

Uttiya

Uttiya

A lifelong writer and communicator, Uttiya writes about core education products that fascinate her. She like following pedagogy and recent research on online education

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1 thought on “Price Challenge – What are the Tutoring Rates for Live Classes?”

  1. Thank you for telling us how tutors are charging for online tutoring and time takes to complete assignments. Please keep sharing blogs like this.

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