Every time I think I have the answer, I need to think again
I was recently asked by a parent from my former company, the one that shut down, to lower my private rates for them. Actually, they claimed I had previously promised them a lower rate. I did mention a lower rate off-hand the day the company shut down, though not as low as they say I quoted, but after having actually started a private practice, I realized the overhead costs and extra administrative time would mean I'd make even less than I did at the company. So, even though I considered relenting, in the end, I stuck to my pricing.
In truth, the only reason a tutor would be willing to accept a lower rate from a tutoring company than what they would privately charge is because of what the tutoring company may offer:
#1: Supply
The tutor does not have to worry about finding their own students. The private tutoring market is so competitive that I would have no idea how to market my services and attract new students. As mentioned in a previous blog, if you run a search for tutors in my subject area and geographical location, the results would come back in the thousands, if not the tens of thousands. It is extremely difficult to stand out among such a large pool. Belonging to a tutoring company means having someone else source the students for me.
#2: Contracts and Payment
Not having to worry about loopholes in tutoring agreements, ensuring you covered all eventualities, and collecting payment is a huge bonus for many. In my private practice, I go through numerous contracts, invoicing and accept multiple forms of payment, each one charging a transaction fee. With a company, I do not have to worry about updating, renewing or amending contracts, and chasing after owed balances; I simply receive remuneration at regular intervals. I also do not have to worry about unconventional payment methods.
#3: Online Platforms
More important for some than others, some companies may offer tutors a specific online platform to use. This is an added overhead cost if tutors need to provide it for themselves. If it is provided by the company, a deduction in remuneration would be understandable.
Depending on the needs and preferences of the tutor, they may prefer charging a lower rate in order to take advantage of the added benefits. The flip side, of course, is that a tutor who has to do all this extra administrative and financial work for themselves should certainly charge more.
The Final Score
I recently signed on with two new companies, and I am very excited for both. They're much smaller, more low-key companies, without the bells and whistles offered by the much larger international company that had closed. Neither have a large staff, an army of tutors, or a sophisticated web app. Neither supports their own online platform; one gives tutors the option of using whatever they want while the other asks that tutors use their own Zoom. Neither have sophisticated scheduling tools. However, while the two companies may not offer as many benefits as the larger corporations, they offer just enough and have established an extremely attractive rate for their tutors. I still charge more in my private practice, but their rates are high enough that I wonder if it is worthwhile for me to tutor privately. They may not have the bells and whistles, but I prefer my own bells and whistles anyway. What they do provide are the bare necessities that I enjoy, plus a rate not too far below my own. If I am already wondering if it is worthwhile to lose those bare necessities for a higher rate, I certainly have no incentive to offer an even lower rate to private students.
Comments