How Do I Broach the Topic of Money with My Clients?

Staff Writer - February 9th, 2010 4:39 PM PST

Comments (0) | Share | Email | Print | Repost to Other Site (text only)

Private tutoring and providing instruction in an area where your skills and experience set you apart from the rest can be a great way to earn an income.  Plus you will work for yourself, which comes with many benefits.  Aside from the benefits of getting to set your own schedule and choose the clients you would like to work with, there is also the benefit of potentially earning a higher wage than you would working for a company. 

Let's be honest, almost everyone could use a little more income each month.  So, how do you set your rates and protect the integrity of what you do to ensure that you get paid what you're worth?  Consider the list below as a guideline for establishing good terms with your clients so that you will never have to deal with late payments, lack of payment, or compromising your fee.

1.  Be Direct

At the very first meeting with new clients, bring up the price you charge.  Do not avoid the issue.  Obviously, your clients are aware that any kind of tutoring will cost them something.  Just let them know that you are confident about your ability to provide what they need.  Your experience and confidence will convey that the price you have set is appropriate.

2.  Hold Firm To Your Price

The only time you should ever offer a discount on your price is if you are running an introductory offer or you decide to give a discount when a client books a bulk number of hours at one time and pays up front.

When new clients are asking you to match someone else's price, hold firm.  One of two things will happen here.  They will either work with someone else because price is the most important thing.  Or, they will want to work with you badly enough that they will pay what you ask.  The bottom line is, there are only so many hours in a day.  Don't fill it up with people who are unwilling to pay your price, when there are plenty of clients out there who will.

3.  Explain Important Details

You are the expert at your business.  During the first meeting, cover all the 'need to knows' with your client.  This way you avoid confusion that could lead to an unwillingness to pay for services provided. 

Cover topics like: 

Are the lessons billed in blocks?

What are the accepted forms of payment?

How do you charge if a student misses a lesson?

How do you compensate the student if you miss a lesson?

What are the agreed upon holidays/vacations?

What is the best method of communication if schedules move?

Finally, have these points summarized in an Understanding Agreement that is signed by both student and teacher in case problems arise.  Have a signature card for each lesson in case there is a dispute.  Proper documentation will help you keep things professional.  Plus, you will be protected from clients who might otherwise take advantage of you.

Comments (0) | Share | Email | Print | Repost to Other Site (text only)