As a private tutor, how do you decide on what to charge?
One of the first things to consider when going private is pricing. The price to charge per session has to be competitive compared to others in the market. An important factor to consider is whether many tutors specialize in the same subject. Generally speaking, language arts or humanities are priced cheaper than STEM subjects, simply because of the tutors available. When I visit a tutor database and do a search for English tutors, over 10,000 hits are returned for my geographical location alone. It is very challenging to find a way to stand out if not by price.
On the other hand, it is crucial to not undervalue what you can offer. I have over 30 years of tutoring experience, a Master of Education, and have taught from kindergarten to university level. Moreover, I spend many unpaid hours creating original materials for my sessions. I should not be charging rates competitive with tutors who have under 5 years of tutoring experience and only provide homework help.

Complimentary Sessions
Some tutors believe that it is good practice to offer a first complimentary session. This may not be for the full hour; it could be a half hour or even 15-minute getting-to-know-you session. In fact, when you work for a tutoring company, some require that your first session be complimentary. Other companies will offer complimentary sessions to students but still pay tutors at a reduced rate. For me, my first session is not complimentary because it is a full-hour session and, although I do spend a few minutes doing introductions, the rest of the time is filled with assessments so that I can develop a work plan and determine what exercises to create for the student.
Cancellation Policy
Cancellation policies are also something that needs to be made clear from the very beginning. Some companies have a 4-hour cancellation policy, some have a 24-hour cancellation policy. Some charge full price for no-shows, while others charge half price. I have a 24-hour cancellation policy because, at that point, the preparations for the session will already have been completed.
Packages and Deals
Tutors have different ways of collecting payment from or offering pricing packages to their students. All start with the flat rate fee, but some may charge a monthly rate while others may charge a packaged deal. I have reduced rates if the student books 5 or 10 sessions, payment in advance. But then, this raises an interesting question: What happens if a student needs to be tutored in more than one subject? For students that request tutoring in multiple subjects, I do allow them to use the package rate, although I do ask they pre-book the sessions so I know when I would be tutoring what subject.
However, I also have families in which I tutor more than one student. Even if I am tutoring them in the same subject, I require that they purchase separate packages. It can be argued that, if I am tutoring the same person in history and English, there is some overlap in subject matter. For example, if I were to teach writing composition, the help with history homework may be easier. However, if I am tutoring two different people in the same subject, the learnings are not shared among the students and my work is not decreased across multiple sessions; I would have to teach the same learnings from scratch to each student. Moreover, I have never had a student who requested more than three sessions a week, while two students could potentially book six sessions. This means I would be charging less without the benefit of less frequent administrative and financial work. As such, the advantages I would gain from multiple bookings would be far less when shared among multiple students, even from the same family.
Due Upon Receipt
Finally, there is the question of when to expect payment. Since my pricing is per package, I do not begin tutoring until I have received payment. Given this habit, I also request payment in advance for my ad hoc sessions. Some of my colleagues will charge on the first of the month for the month ahead, while I know of some who charge at the end of the week for the tutoring sessions already passed. When I work for a company, I am willing to take payment after the session has passed. However, in my private practice, I insist on receiving payment up front. There is a sense of financial security that exists when working for a company. If I do not receive remuneration from a tutoring company, I am unlikely to be the only one.
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