Pricing your classes appropriately is one of the most impactful decisions you can make for your teaching business. Underpricing might seem like a way to attract more learners, but it can undervalue your expertise and limit your growth.
This guide will help you challenge pricing misconceptions, explore data-backed strategies, and communicate your value effectively to families. By refining your pricing, you’ll create a sustainable business that reflects your worth and inspires confidence in your learners and their families.
Challenging Pricing Misconceptions
Many educators undervalue their classes, believing lower prices will lead to more enrollments. In reality, this strategy often backfires.
Why Undervaluing Your Classes Hurts Your Business:
- Perception of Quality: Families often equate lower prices with lower quality.
- Unsustainable Growth: Low prices require significantly higher enrollments to achieve meaningful income.
- Burnout Risk: You may feel overworked and underappreciated, which can diminish your enthusiasm and teaching quality.
Reframe Your Thinking:
Your classes are an investment in a learner’s education. Families are willing to pay more for classes they perceive as valuable, engaging, and expertly taught.
Data-Backed Pricing Strategies
What Does the Data Say?
On Outschool, competitive pricing typically ranges between $10–$12 per learner for 30–45 minute group classes, depending on the subject, age group, and level of interaction. For more niche or advanced topics, prices can exceed this range.
How to Determine Your Pricing:
- Assess Your Value:
- Expertise in the subject.
- Unique teaching approach.
- Class outcomes (e.g., tangible projects, skill development).
- Research Similar Classes:
- Look at what other educators charge for similar topics.
- Identify how your class is unique and use that to justify a higher price if appropriate.
- Calculate Your Target Earnings:
- Example:
- Goal: $400/month.
- Class Price: $20 per learner.
- Enrollments Needed: ~30 learners/month.
- Example:
Communicating Value to Families
Raising prices or charging a competitive rate can feel intimidating, but families will support your decision when they understand the value you bring.
How to Communicate Value:
- Highlight Class Benefits:
- Be clear about what learners will achieve or gain.
- Example: “By the end of this class, your child will confidently write a three-paragraph story with a beginning, middle, and end.”
- Showcase Your Expertise:
- Share your qualifications, teaching philosophy, and experience.
- Example: “With 10 years of teaching experience and a Master’s in Education, I specialize in helping learners build foundational writing skills.”
- Use Reviews and Testimonials:
- Highlight feedback from families who’ve seen great results.
- Example: “Parents say my classes help learners feel more confident in math after just a few sessions!”
- Explain Any Price Changes:
- If you’re raising prices, let families know what the increase covers (e.g., enhanced materials, expanded class time).
- Example: “To continue providing high-quality resources and engaging activities, I’ve adjusted the class price slightly.”
Building Confidence in Your Pricing Decisions
Try This Exercise:
Write down three reasons your classes are valuable to families. Use these to build confidence in your pricing decisions.
Example:
- I provide hands-on activities that make learning fun and interactive.
- Families consistently give positive feedback about their learner’s progress.
- My qualifications and experience ensure a high-quality learning experience.
Take the next step toward refining your pricing strategy! Use the pricing worksheet below to evaluate your current rates, identify opportunities for adjustments, and communicate your value effectively to families.
Be inspired by the Pricing Worksheet Template below and start optimizing your class rates.
Pricing Worksheet Template
Section 1: Current Pricing Assessment
- Current Class Price: ______
- Average Learners Per Section: ______
- Monthly Earnings: ______
Reflection:
- Do you feel this price reflects your class’s value?
- Are you achieving your target income at this price?
Section 2: Research and Benchmarking
- Average Price of Similar Classes on Outschool: ______
- Unique Value You Offer (e.g., expertise, outcomes, niche focus): ______
Section 3: New Pricing Strategy
- Adjusted Price Per Learner: ______
- Projected Average Learners Per Section: ______
- Projected Monthly Earnings: ______
Section 4: Communicating Value
- Three Reasons My Classes Are Valuable:
How I Will Explain My Pricing to Families: ______
