I do private guitar lessons as some of you may know. I had a call about an hour ago from a parent who got my number from one of my existing clients wanting lessons. We've booked a trial lesson for Saturday morning which is great.
However, as they said its a recommendation they've asked if I can give them some kind of discount rate (i.e, pay the same fee as the person who referred them). The existing customer has been with me for 4 years and my fees have gone up considerably so I can't justify doing it for that price now. They normally pay in blocks of 10.
How should I play this? Offer the first batch of 10 lessons for the same rate as the existing customer as an introductory gesture? I've also changed my charging system to monthly blocks of 4 instead of lesson-by-lesson, and my 10 lesson rate has also gone up.
I'm getting early signs the parent is highly irritating as well (wouldn't let me get a word in at times, had to stop her to say "can I speak, please?" and they're looking for a cheap bargain. Next year will be my 10th year in doing tuition and I firmly believe my value has gone up since as well as running costs.
Advice please gents?
Comments
You already have have a gut feel that this new parent will be a PITA, so why do it on the cheap?
I'm not locked in here with you, you are locked in here with me.
I’d certainly recommend you stick to your guns - you’re worth the price you’ve chosen, and it’s best to start this person off with that message.
As for your fees it's totally your call -- but I can't for the life of me see why a new client out of the blue should get a discount.
As mentioned earlier, I think I've misphrased the post, they simply want to pay the same fee as the existing client.
The more common way of doing this is a finders fee to the original customer. You could argue that this is already being implemented through holding the old price.
Either way I’d take the view “nice try love, but that’s not how the tutoring business works”. This would be closely followed by “don’t piss me off. There’s a limit to how much aggravation I’m prepared to absorb”.
Some people are programmed to always try and get one over, on everybody else.
She will no doubt say she has been talking to another tutor when you say no, but stick to your guns.
She's just bullying you.
But you also need to plan ahead - if this new client accepts and stays, will you keep their price constant for a short long as they stay with you? It rewards loyalty but it doesn’t seem an ideal business model, and creates the situation you’ve now found yourself in.
If anything my restructured charging system now actually works out cheaper lesson by lesson than paying individually a few years ago.
Usually I don't raise rates for existing students, and the ones I have done it for has been a few quid every 2 years. A few have quit, a few stay.
It's easy with the price: "These are my [current, 2017] fees."
You don't have to negotiate. It's your fee.
We all have a bit of wiggle room but tbh I seldom offer anything different unless I'm doing my equivalent of pro bono.
She takes it or leaves it.
Offer an introductory lesson free and then explain they will get a beneficial rate 4 years down the line if they remain loyal and regular customers.
Some people think everything is up for negotiation, just explain politely "these are my rates".
Do you keep a record of who is paying what? You might need to or better still put everyone on the same rate but reward loyalty with free lessons. Might prevent the current situation recurring.
And yes I do keep a record, it is easier though to whack everyone on the same rate at the same time.
Remember also, that referrals by others are worth their weight in gold, so continue to ensure you give the best possible music lesson to each and every one of your current pupils. By showing that your pupils are moving forwards in a significant and measurable way on their musical journey (passing exams, playing live, developing as an individual), then you've done what you can.
Then the customer has two choices: (1) pay up and get great tutorship for their child, or (2) go elsewhere and risk getting a poorer tutor. That choice is theirs, not yours.
Never be desperate to sell out your soul. You only cheapen yourself (and make a rod for your own back).
Here endeth the lesson.
Dont de-value your time and knowledge for someone whos a new customer and quite frankly sounds like more trouble than the moneys worth at full price, never mind at a discount.
I remember back in January I had a student doing 45 minute lessons each week. I told him a month in advance the fee would be going up by £3. He accepted and never said anything for 4 weeks. First lesson of the year comes and afterwards he tried to make out the increase wasn't in line with inflation and all that bullshit. I refused to budge and said either he pays the new fee or I reduce his lesson time more. He even had the cheek to say "if you're increasing by £3 at least give me an extra 15 minutes..."! What planet does this guy live on? I had to constantly tell him no politely and in the end literally kick him out the door as we had run past our allocated lesson time. The following week he texted me to say he's quitting, unsurprisingly.
A month or two later I get his details come through via Bidvine asking for lessons. I was tempted to reply for a laugh just to wind him up.