Interesting article I read today and I thought it would be worth to share with you guys. Agree to disagree : )

www.sunnystampinstore.com/FreeResources/classpricing.htm

Enjoy.

Do you Charge What you are Worth?

Hi Angela, thanks for sharing this very interesting article. I guess all teachers are charging less than they are worth.:) But at the end of the day, I will still continue to teach because I am most happy when I am teaching and when I have wonderful students.

No Angie. Its impossible to charge what I’m worth, with free classes and Superpass all around me.

But, its my choice. Take it or Leave it. I’m taking it, so I don’t complain.
Besides, I have wonderful students that make it worthwhile……that’s the true motivation.
THANKS TO ALL MY STUDENTS

Well said Enrique:) Me me, I am one of the students.:D

Yes Claire. You’re certainly one of my great students……that bring joy and motivation to me.

Thank you for the thoughts. Here’s a couple more:

1. The market may resist a higher price. I once did try to charge more and got no bites. Should I have kept bashing my head against the market wall made of bricks until others are willing to see the value in my work and pay for it? Or maybe I should find the price the market is willing to pay.
2. The effort designing goes down (not away) each time you do the class. While I am always refining my material, it is not as much work as it was the first time. Imagine if each grape was sold to match the cost of growing and picking one. That and an economy-of-scales is how Google is able to give space away at absurd prices.
3. Losing money on one item to increase the profit in another is nothing new. Look at restaurants that are open on days and times they know they will lose money. But if their target is lunch then they make up for it at noon and even more on Friday. Sometimes you have to lose the battle to win the war.
4. Sometimes (not always) the bargain hunters are who you want. Maybe she should have charged slightly more. Enough to increase her profits but not enough to scare away the bargain hunters. Also, I think that in today’s economy there are more “bargain hunters” than before. According to some, if we learned the lessons from the last few years then there will be more “bargain hunters” for years to come. <sarcasm>Maybe we need to stop teaching until the rest of society forgets what they just learned. </sarcasm>.

I’m glad she has found the price for the niche she is in. But I don’t think it fits for everybody or for eternity.

Let’s twist her last question: Do your students think taking your class is worth what you charge?

Q. What are your students goals and expectations of you?

A. Students expect their teachers to be knowledgeable, to be skilled as teachers, and to care for students. A teacher must know the subject that they are teaching. The belief that their lecturers have sound knowledge of the subject is very important as far as students are concerned. It gives them confidence in their teachers.

They expect them to have excellent teaching skills. As a student has commented, the most important thing about teaching is not what the teacher has taught, but what the students have learned. Students report on a wide range of “teaching skills” that make it easier for them to benefit from the teaching:

Ability to present materials clearly and systematically;

Ability to pitch the teaching at the appropriate level for the students;

Creative use of learning aids;

Ability to arouse the interest of the students;

Encouraging students to learn actively;

Stimulating students to think critically and independently.

Also, a teacher must have appropriate attitudes and values. These are the aspects of “good teaching” that students are most attracted to. If a lecturer is supportive, concerned that students should learn, and adopts a positive and professional approach towards teaching, the skills and knowledge will usually follow naturally.

Now, for the question of money. If you have all of the techniques described above, then you should charge a reasonable amount between $15 – 25. If you are new at teaching and just need a little headstart, make the class either free or about $5 – 10. It really all depends on you and what you would like to charge.

Angela, thank you very much for that article and Enrique you’re a great teacher. You should teach $30+. :D

For the most part, as others have said, your worth in dollars is determined by the marketplace. The key is to think long-term. eduFire is new and online learning is still in its infancy. It really is too early to determine what online learning is worth. As is any business, keep at it for at least 2, 3, 4, or more years and I think people will earn their value.

Many of us have taught traditionally for many years. However, online we are all pioneers.

I agree with all the points mentioned here, but believe that one can still charge what one believes to be a reasonable rate.

Perhaps I am lucky to teach math which is not as crowded an area. But even there in GMAT I’m the only one who charges $20/ hour (1:m) and $35/ hour (1:1) in amidst a slew of offerings for free/superpass or $5. (check http://edufire.com/classes/gmat).

In some sense, I believe my premium provides an impression that I am more reliable than the others. I have had quite a few session requests in the past few months. Most wanted superpass or discounted rates. Most were directed to other tutors.

A few were ok with my rates and held regular sessions with me. My analysis tells me I made more money in less time teaching these few, than I would have if I taught everyone at superpas rates. But yes, I had to direct most of the students to my colleagues offering classes at lower rates – hopefully they made some money too :)

Teaching is not my full time profession; and I have taught my share of free/ superpass classes to establish myself and get a reasonable rating.

However there is a market with students who’ll pay if you are willing to focus only on those. My 2 cents.

Kamal makes a great and important point: a product or service priced too low is perceived as low quality.

The point where something is not priced so low that it interferes with ones image and not so high that it scares potential customers away is a very fluid one. Even BnM businesses that compete in a well defined market have troubles finding it. All businesses requires spelunking and urban exploration at times.

Because we are competing in a market that is very finicky at a very finicky time, we may not have the freedom to play with our pricing too much until we find our niche and learn how to milk it well.

the answer to this questions is
YES, all of my classes are cheaper online than in real life.

Why?
I deducted the travel expenses
:D