Maximizing The Value of Your Tutoring Services

Maximizing the value of your tutoring services

Deciding how tutoring services are presented, priced, and packaged is one of the most challenging aspects of managing a tutoring business. In this article we’re going to discuss billing methods you can use to book multiple lessons at once, and why moving away from one-off hourly services can help your tutoring business maximize the value of its services, schedule more lessons, increase revenue, and increase customer satisfaction.

Many tutoring businesses only offer one-off lessons scheduled at hourly rates. This set-up is simple and easy to manage, but can limit long-term growth for a number of reasons:

  • Customers don’t have the opportunity to commit to your business if they like your services.
  • It keeps customers focused on the cost of your services, rather than the value they receive in return for their money.
  • Fewer lessons are sold and scheduled upfront, meaning your hard-earned customers might switch companies if they see better rates with a competitor.

The reasons listed above make it important to find alternatives to one-off lessons. That doesn’t mean one-off lessons need to be abandoned completely (they can still add a lot of value and appeal to a lot of customers), but adding alternative service offerings so customers can book more lessons upfront can make your business more dynamic and flexible when it comes to meeting customer needs.

Fortunately, there are a number of methods you can use to expand your service list to allow more bookings upfront:

  • Offering Packages of Lessons
  • Scheduling Repeating Series’ of Lessons
  • Flat Fee, Subscription Based Services

How you price, package, and present your services will look different for each company depending on your market, services, customers, etc. Below we’ve detailed some of the ways broadening your service list and moving away from one-off lessons can increase revenue, increase lesson bookings, and lead to higher customer satisfaction.


Offering Multiple Lessons at Once Shifts Emphasis from Cost to Value

Offering packages, flat fees, and scheduling multiple lessons at once shifts the emphasis on your prices from cost to value. When your services are offered as individual lessons with an hourly rate, the cost/benefit analysis a customer goes through is a direct one-to-one ratio (i.e. one hour of tutoring costs $50).

In contrast, when a customer analyzes offerings that include multiple lessons (and other benefits like discounts, extra lessons, etc.), they’re more likely to evaluate offerings in terms of the value they’re being offered (i.e. they consider the complete whole they’re getting in return for their money). The cost of the service remains relevant, but it will no longer be the customer’s sole focus.


Emphasizing Value Also Maximizes The Perceived Value of Your Services

Since a customer’s focus has shifted towards the value they’re receiving, rather than the cost they need to pay, you can use pricing strategies that maximize the perceived value of your services.

Some strategies that allow you to do this are to offer discounts for packages, flat fees, and multiple lessons scheduled at once. You can also offer extra lessons/services when a customer commits to a certain number of lesson upfront, and/or offer a discount on future purchases for the customer.

The more perceived value your offerings hold for a customer, the more likely they’ll be to purchase it. More value upfront means customers are more likely to have positive feelings about their purchase (and your business) before lessons even start. If you then follow-up with exceptional service, customer satisfaction will increase and they’ll be even more likely to schedule more lessons and make referrals.


The Value of Your Tutoring Becomes Unique

When services are priced at hourly rates, customers focused on costs make direct comparisons between your hourly rates and the rates offered by your competitors. This is especially true for prospective customers, who might not yet have experienced the quality of your tutoring services (and don’t yet understand why the cost is justified).

One way to minimize this comparison with your competitors is to make your service offerings unique to your business, which makes it difficult for customers to make direct comparisons between your offerings and your competitor’s offerings.

Customers will still compare prices, but since your offerings are unique to your business, they’ll want to evaluate each of your offerings (and how they’ll benefit from them) before making their decision. This sets up a scenario where they’re comparing your offerings against one another (instead of against competitors), which keeps your business positioned at the forefront of the customer’s mind during their purchasing decision.


Opportunities to Schedule More Lessons Upfront Appeal to Existing Customers

Targeting existing customers with opportunities to schedule more lessons upfront is a great way to increase revenue and schedule more lessons.

Existing customers have a history with your business; they trust your business and they respect the quality of your service, so they’re more likely to commit to higher upfront costs for lessons, since they know what they’re paying for.

It costs more money, time, and effort to acquire new customers than it does to encourage repeat business from returning customers, which makes targeting your existing customers a high leverage strategy for increasing revenue and getting more lessons scheduled.


How Teachworks Helps

Teachworks supports a variety of billing methods, including hourly, package, and flat fee billing methods. Each student can be billed according to their own settings, so you can easily schedule, track, and invoice each customer according to the services (and rates) they’ve signed up for.

You can learn more about Teachworks’ Billing Methods in this article: Teachworks Billing Methods.

If you’re looking for ways to schedule more lessons up front, you can also easily follow the steps in this article about Adding a Repeating Lesson for customers that regularly take lessons on the same schedule.


To Conclude

Hourly rates for one-off tutoring sessions are a cornerstone of many tutoring business, and they likely aren’t going anywhere anytime soon. However, that doesn’t mean your business can’t explore other kinds of offerings to get the most out of your services. Other billing methods and models are available that can help maximize the value of your tutoring services, increase revenue, and help your business schedule more lessons.

If you’re new to Teachworks and you’d like to test out the software’s billing methods, you can click the button below to sign-up for a free trial in just a few minutes.

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