Private tutors: what criteria should be taken into account when setting your prices?
Evaluating the price of tutoring is the pet hate of all private teachers. Multiple criteria must be taken into account, without exception. Prices too high and, above all, too low will inevitably prevent you from finding students. Discover the key points to analyse in order to successfully complete this crucial step.
Rule # 1: Know your market
First thing: know and understand the market, taking all data into account.
Say, you are a maths teacher. You need to find out the prices charged by your colleagues. Look at the rates in detail: all levels (teacher and student), all geographical areas, all disciplines, the different experience levels of teachers across a range of platforms used to promote tutoring.
Remember to consider the supply and demand balance in the area where you work. If you live in an area where you are the only tutor offering philosophy classes at university level, your hourly rate will be due a significant increase.
The information obtained, once amalgamated with the other criteria listed below will allow you to position yourself accurately on the price scale.
The price of private tuition: it’s all about your skills!
To tell you that you will have to analyse your own skills in order to define a fair fee for your services seems pretty obvious, but seriously, this is totally essential!
The first question to ask yourself is: What is your level of education? Are you a student, a graduate or a certified private teacher? You will also have to take into account your experience and your specialist subject/degree.
For example, if you have been a university professor or even a thesis supervisor, the price of your home classes is going to be greatly affected. The more specialized you are, the more your hourly rate increases.
Define the service you are offering to ensure a fair wage
Your pay must be based on the type of tuition services you are offering. There are several options:
Whatever the service you offer, you can always offer a “package,” which would involve a decreased hourly rate depending on the amount of hours booked.
You will need to take into account your travel and the costs that this will entail. Providing school support to a child living 1 hour away may not be very profitable for you!
You can offer variable rates depending on the urgency. For example, if a student contacts you a week before their exams, hoping for 5 days of intensive teaching, you will need to adjust your prices accordingly.
Taxes: Important things to consider as a private tutor
For the private teachers in the UK: as a self employed worker, you need to register with HMRC if your work in the UK. This procedure can be done online, by completiona the registration form SA100. Afterwards, the HMRC will ask you to inform them of your earning so that they calculate the tax amount you owe every year, after the 5th April. Depending on how much you earn, you may be eligible fot the VAT, that concerns people who earn more than £79000.
For the private tutors in the USA: as a self-employed worker, you are asked to file the Form 1040, and you can find it online. According to the IRS, you will have to pay taxes if you earn more than $400 a year. To inform the IRS of your income, you will need to request a 1099s form filled by the 2nd February by your clients who paid you more than $600 the previous year. If you want to estimate the taxes you owe, the IRS provide you the form 1040.