Tuition Rebates
Found in: Fees Rates & Cost
Robin Keehn, Washingtion
I’ve had some interesting conversations with a number of teachers over the past several months regarding what to charge for tuition. Of course, the amount we charge varies with what part of the country and which country you live in, but there are some things worth considering regardless of your location.
I have spoken with a few teachers recently who wanted to make SM very affordable in their communities and were considering charging very low rates. As admirable as the goal is to provide SM to everyone, there are some strong arguments against low rates. Here are some things we have learned in our studio and that I have heard from other SM teachers around the world.
First, SM is a unique program with unique results. There is nothing else like it. As a SM teacher, you have unique training and provide students with not only an extraordinary method but with coaching in managing a long-term relationship. You are in a unique position to train parents to train their children in long-term relationships, accountability, discipline, persistence, etc. Teaching SM for only a matter of weeks will be enough to convince you that this is something special. You have a USP–unique selling proposition with our playing-based approach (for those of you into marketing lingo).
That alone was enough to convince me to charge twice what traditional teachers were charging in my area when I started teaching eight years ago. Did that prevent me from getting students in my town of 5,000 people? No, I started with 40 and quickly got to 60 and convinced my business partner and friend to become a SM teacher to help me with the demand. Did I have a hard time deciding on that rate ($80 a month for group lessons at the time)? Yes, it took some convincing by Neil, but I was SO happy I put my rate up higher than I was initially comfortable with.
What I’ve learned is that PERCEIVED VALUE is very important. For example, what do you think is a better product: Shampoo that costs $3.00 or shampoo that costs $12.00 a bottle? Most of us would conclude that the more expensive product is a better product and we would probably be right. So, charging less than or the same as traditional lessons really indicates to most people that SM LESSONS ARE THE SAME AS TRADITIONAL LESSONS. Is that true? Are the results the same? I don’t think so. Pricing of lessons is important because people look at the cost and make judgments about the value of what you are offering.
The other thing I know, from my own experience and that of many other teachers, is that the more a person has to personally invest, the more serious they are about learning to play the piano. For example, usually if you are charging a low rate and it doesn’t have a financial impact on a person or family they will not be as committed.
If you are charging a higher rate AND requiring that a coach is present and active in each lesson, you will have a better student and much better retention. No skin in the game = no commitment to playing the game. The more sacrifices someone makes to being in lessons (more money for tuition, spending time as a coach in lessons, making arrangements for other children in the family during lesson time, rearranging other commitments) the better students they are. We have one family with three children who pay $270 a month for SM lessons. That mom has never missed a lesson in six years. Those children keep impeccable playlists. They are awesome students and they are a pleasure to work with.
So, the bottom line is, don’t undervalue your lessons. Don’t give your expertise away. You have an incredible product here and you are specially trained to be a superior method coach. You need to be paid well for what you are able to give students–music as a lifelong companion. You need to have students who value you and SM and are committed to seeing this through.
If you are priced below other teachers of SM, consider getting on the same page. First, it communicates that we are united in our efforts to a world where everyone plays and that there is continuity in pricing. I don’t think you have to be exactly where other teachers are, but it is a benefit to be close. I think if you set your prices much lower than other teachers in your area, you will eventually end up with fewer students and less committed students. Perceived value is powerful thing.
Stan M., Ohio
Robin stated that for some teachers they wanted to have fees that would open up lessons to being more affordable in their communities.
There is no doubt to me that this gem called Simply Music is a diamond and is worth top dollar. There just is no argument in my mind that there is anything out there that has been engineered so cleverly. As a teacher you just can tell there is a thought behind every turn, which leads to success. It’s not performance-based or reading based but playing based, which fits the goals I have for my students. It isn’t those other two are absent, it just isn’t the focus as it obviously is in most programs which have them either by design or tradition.
However, as much as this is a gem, it is my opinion that that there is nothing wrong with giving away diamonds as long as it means you can sustain that. As I tithe a section of my lessons to those that couldn’t afford it, I have had several discoveries and solutions I have engineered. But ultimately, you have to ask yourself, is the course you are considering something that you can afford in the long run?
When I have talked to other teachers about this, they usually are looking at how much can I make per lesson vs how much does it cost me per lesson in set expenses. What is the total expense per year for your lessons (SM fees, insurance, training, licensing, studio rents, etc) and divide that up into your students. I know when I went through my calculations, I was surprised to how much of my lesson goes to my expenses.
As I move forward with reduced rates or tithing lessons for my students, I am going to enact a monthly rebate for these students. I have found, on the average, my students with a reduced rate tend to miss more lessons and practice less. To help them be successful, they are going to pay the first month’s tuition in full, and then if they are practicing and participating at appropriate level (this is a skill and takes time to learn), then they will be rebated down to the reduced rate. If they miss lessons, there is a loss of rebate. If they aren’t practicing, there is a loss of rebate.
This idea isn’t for everyone. There are inherited problems. I get all that. When you create solutions, you only create other problems. But it is all part of the game of moving PEOPLE along and for some people they need different carrots.
For those that are considering lower fees so more people can experience this program, I say “Fantastic. I love it.” But just make sure you can do it from a long-term business model otherwise you are not going to make it and that ultimately will hurt the student. And maybe consider a reduced fee for those that can’t afford it vs it being a blanket policy.
I know a teacher that was charging around $10 a lesson. This teacher found that after it was all said and done, the profit was around $5. The teaching time was cutting into the teachers family life etc, and after much debate concluded, it wasn’t worth it and closed the studio. Only a handful of students now take lessons and the rest have not continued. What a shame.
No Mercedes Benz dealer stays in business selling at a loss or marginal profit. And no one even suggests getting a discount on a Mercedes because everyone knows what its real worth is. The service is impeccable and the quality is like nothing out there. Be a generous Mercedes Benz dealer for sure but do it in a way you can be there for the long run. Good luck.
Melani M., Georgia
I love Stan’s idea of offering a rebate for students who are living up to your expectations. When I read it, I immediately thought: “I’m going to do that”, since nearly everyone has some reason that they should get a discount (they are your best friend, or they have multiple students, or they referred a student to you, or they pay you early… there is always a reason.)
Then, as I thought about it, I realized that it could get very sticky as you try to determine who gets the rebate. (“I didn’t get my rebate this month because we had an out-of-town funeral, and couldn’t practice – you get the idea.) Does anyone have any ideas on how you would implement this program so that it’s “fair” for everyone and that your students’ families don’t see it as being too subjective? I worry about over-complicating these things.
Amy Y., New Mexico
If you have a number of students, how about having a drawing for coupons at certain times throughout the year. Each time a student meets your expectations (or extra credits would work here too) they get to write their name on a piece of paper and drop it in the box. I think people would be less worried about calling foul if all they are doing is earning greater odds in a drawing for discounts and if they don’t get the discount they probably won’t be upset.