Job Discussion Forums

[TheLongWayHome]

Is it ethical to charge more for a private class if you know the client is fairly affluent?

[Phil_K]

Of course!!!!

I suppose the serious answer is that this is question of gauging the possible consequenses rather than the ethics. If this is likely to be a one-off, then no problem. If this person could be in a position to get you more clients, I would be wary of going over the top as the strategy could backfire on you at a later date.

The ethical question is a matter for your conscience, but from my point of view, where big bucks are to be made, I don't have one. Maybe it's my inner-Mexican

[Oreen Scott]

Phil:

I don't think it's your inner Mexican, or maybe it is? Anyway, I'd call it a sliding scale and it can be a nice way to give a less fortune person a break, as long as the less fortunate person isn't humilated by such a break.

It's like a senior citizen discount. Or kids under 6 getting in free to something or other. . .I suppose it could also be called "charge what the market will bear."

[wildchild]

I agree with oreen: it's all about how you frame it.

You're not charging the affluent, more; you're charging the poor, less.



I'm not sure how this would work in Mexico but, like oreen said, you set a sliding scale with a high standard price which adjusts down for folks of low income.

[TheLongWayHome]

Well, the client said, 'Charge me whatever a language school would charge me', which was when my inner-Mexican thought of charging him more than usual. Just trying to work out which language school I am.

[MikeySaid]

A potential client offered me 200 an hour for her husbands classes, and it sounded like quite a bit to me until I found out the urgency of learning. As a pilot for Mexicana, he had to learn a sizable chunk of English to keep his job, essentially.

People will pay what they think it is worth. If they are affluent, they probably know what is a rip-off and what isn't.

[GueroPaz]

My friend knew that I charged a certain rate for private lessons. His language school charges 70% more to the students, so he uses me to teach test preps, and I get the same net rate. Because all my clients are evangelicals, I give discounts of about 15% to missionary families. But the non-missionary families would understand why, if they found out. The exchange rate for Korean won is so bad that I lowered my prices for the next four months by about 9%. But I publish my standard rate, so there is no haggling over the rate.

If I knew a student lived in substandard housing, and needed a discount, I might tell them to pay me for 40 minutes and I would teach them 45 to 60 minutes each time.

[mapache]

My dilemma is what to do with private students who have been with me for two years or more and are paying the old rate. When I started, I charged 60 pesos per hour (hey, it's Chiapas and that's what the private schools paid when they actually paid their teachers) but I now charge 100 or more. Is it fair for new students to pay more than the old ones? I have increased old rate to 70 but still wish everyone paid 100. As every good salesperson knows, however, it's a lot harder to get loyal new clients than to keep the old ones.

[Linda T.]

Mapache,

Regarding raising the rates for those students who have been with you for a while . . . my suggestion would be to find out how it is normally done by the locals at the barber or beauty shops. I've been going to the same place in the states for years to get my hair cut. When I would ask my hairdrersser if her rates had gone up, she would just tell me they were still the same for me. Once, I felt so guilty that I just raised them on myself. Then, another time I saw that there was just a card on the counter saying the rates had gone up by $5.00. That might be a good way to do it . . . post that the rates have gone up, but leave it up to the students whether they pay it or not. The bottom line, though, is probably, how is this usually done within the culture where you are teaching. My hairdresser WAS born in Mexico, but she's been here forever so I don't know that her roots have anything to do with her reluctance to raise the rates on me. My piano teacher, on the other hand, just sends out a notice to every student whenever the rates go up. I'm always a little offended since my hairdresser has me so spoiled . . . but then I remember that the cost of everything else continually goes up so my piano teacher needs to charge more if she's to meet her own expenses.

[MO39]

Also for mapache -- Raising rates for long-time students can be tricky, and two years shows a lot of loyalty and commitment on their part. You could bring up inflation as a reason for raising your rates, but going from 70 pesos an hour to 100 is a jump of almost 50%! Perhaps you could mention the possibility of raising them to 80 or 85 and see how they react. In the long run, I think that you may have to resign yourself getting different rates from your students according to when they began their classes with you.

[Gary Denness]

[GueroPaz]

[MELEE]

[Phil_K]

[TheLongWayHome]