45 min. individual vs. 60 min. group pricing?

You might consider taking a pay cut to accommodate 45-minute lessons (and try to make up for it with new students), or you can find ways to get creative and make more while providing a 45-minute lesson structure.


Daniel: The pricing formula that I used, and that worked for me, and I’m sure this isn’t the only way to do it but it worked so well for me that I never really tried anything else, is that I wanted to charge the same for a half hour private lesson as I do for a 60 minute group lesson. For people who are in 45 minute lessons this poses a challenge. If the majority of your students are 45 minutes, and now all of a sudden you’re moving them to an hour, but you’re charging based on what your 30 minute rate would be, so let’s say for instance if 45 minutes with you is $150 a month then 30 minutes would be $100 a month, which means that the group would be $100 a month. What that means is you’re going to take a pay cut.

Now, of course, you can replace that with the new students, and eventually make more, but I have … with previous alumni they’ve felt the sting of that, and so there’s a couple things that I’ve recommended. Again, you can go back and look at some ads where this is even discussed in the past inside the alumni group because there’s a lot of good ideas there that other people came up with that I don’t even remember. One thing is that some people offered two lessons a week, so they actually ended up making more, and those parents wanted it.

To move from 45 minutes to see the teacher once a week for 45 minutes privately all the way up to two hours was only $50 more for those people. Many of those … when she did her conversion many of those people jumped, and came to two groups a week for $200 a month as opposed to the $150 for one 45 minute private lesson a week. I just said two groups a month, I meant two groups a week.

There’s two components to that answer. I talked about the equation, basically, that I used, and then I talked about an idea, what you could potentially do to alleviate, perhaps taking a pay cut.

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