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hogwan cost per hour?
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thematrixiam



Joined: 31 Oct 2007

PostPosted: Wed Mar 25, 2009 2:54 am    Post subject: hogwan cost per hour? Reply with quote

hey guys.

Just wondering how much hogwans charge for an hour lessons. I am looking to start up privates with classes of up to 6 people. I was thinking 35 per hour.

my wife is telling me they pay 120 for 1 month of lessons. 5 times a week for 1 hour lessons. that's roughly 5,400 per hour... I can't imagine that being right.
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frankly speaking



Joined: 23 Oct 2005

PostPosted: Wed Mar 25, 2009 4:06 am    Post subject: Reply with quote

Of course it depends which area you are in. Rural parts of Korea charge that, but more Central parts of Seoul charge a little more. The last school that I worked at charged 150,000 a month. Usually schools make about 2 times what they pay their teachers for a class.

I think that you will not get any students if you are charging 35,000 an hour / per student for a group class. Many people are charging 35-40,000 just for 1-1 privates.

Again, if your desire is to start a group class, charge by the month not by the hour. Have parents pay up front 1 month at a time. You will need a classroom. I wouldn't teach in your apartment, unless you have a separate room large enough to teach and dedicated to that. Otherwise it will look shady and unprofessional. Parents won't pay a lot to have their kids sit in someone's living room with 5+ other kids.

Good luck. I hope that you are on an F2 visa.
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thematrixiam



Joined: 31 Oct 2007

PostPosted: Wed Mar 25, 2009 5:21 am    Post subject: Reply with quote

ya. got my f2. as well as my tutoring license which allows me to legally teach from my apartment.

well what do you think per month I should charge? I was going to do it per month anyways. 2 hours a week. I was thinking of setting up classes from beginner to advanced. and having different time slots.

should I do a scaling system for price depending on how many students are in a class. say start at 35 per hour if it's one. then go less if there are more.

Any 1 try to set up classes like this before? how'd you go about doing it? feel free to private msg me

thanks
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losing_touch



Joined: 26 Jun 2008
Location: Ulsan - I think!

PostPosted: Wed Mar 25, 2009 5:27 am    Post subject: Reply with quote

My hagwon charges 150,000 per month. That gives students 40 minutes with a Korean teacher and 40 minutes with a foreign teacher. They come 5 days per week.

80 minutes x 5 days = 400 minutes x 4 weeks = 1600 minutes

That is roughly 26.5 hours.

150,000 / 26.5 = less than 5,600 per hour.

I would say your wife is right.
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John_ESL_White



Joined: 12 Nov 2008

PostPosted: Wed Mar 25, 2009 6:33 am    Post subject: Reply with quote

Depends on how you sell yourself. I have korean friends with apt hagwons who charge 200K/month. The parents who want their kids to have an hour per week with a FT pay more.

My K friend also recommended that I charge 230K/mo for 3 classes/ wk for my own classes. I haven't had any parents cough at that amount. They've been happy to pay it.

I'm not in the country though. Country folk might want a reduced rate.

Sais K friend has been doing apt hagwon teaching for 8 years now. She's really, really good. When she first started, she paid for a YBM homeschool franchise which cost too damn much and didn't do much for her. After 6 months, she just did everything on her own: advertising, books, etc.

There's a lot of money in apt., schools for F2s. It takes about a two months to get off the ground and start making that money. So, make sure you have a nest egg for the first two months.

Do NOT undersell yourself.

If possible, hire a korean English-e teacher to help you. You can get a PT K eng teacher for 800,000 to 1.5 million, depending on their age and experience. Trust me; you wont even miss 1 million won/month once you get rolling.

1 student X 3, 50 minute classes a week = 200K +/month.


If you are the only FT with a homeschool in your apt complex, you can get 30-50 students in 4 months.

good luck.
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T-J



Joined: 10 Oct 2008
Location: Seoul EunpyungGu Yeonsinnae

PostPosted: Wed Mar 25, 2009 6:36 am    Post subject: Re: hogwan cost per hour? Reply with quote

thematrixiam wrote:
hey guys.

Just wondering how much hogwans charge for an hour lessons. I am looking to start up privates with classes of up to 6 people. I was thinking 35 per hour.

my wife is telling me they pay 120 for 1 month of lessons. 5 times a week for 1 hour lessons. that's roughly 5,400 per hour... I can't imagine that being right.


It depends on your location, but your wife is right.

You are not legal unless you are charging within guidelines and paying taxes. The fine is stiff and if you are a foreigner regardless of visa status you can bet that if you are caught that will be the end of your business.
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thematrixiam



Joined: 31 Oct 2007

PostPosted: Wed Mar 25, 2009 7:03 am    Post subject: Reply with quote

John_ESL_White wrote:


My K friend also recommended that I charge 230K/mo for 3 classes/ wk for my own classes. I haven't had any parents cough at that amount. They've been happy to pay it.

1 student X 3, 50 minute classes a week = 200K +/month.


what about 2 times a week? or 1 time a week?

I'm in bupyeong... not super rich area.
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T-J



Joined: 10 Oct 2008
Location: Seoul EunpyungGu Yeonsinnae

PostPosted: Wed Mar 25, 2009 8:50 am    Post subject: Reply with quote

John_ESL_White wrote:



My K friend also recommended that I charge 230K/mo for 3 classes/ wk for my own classes. I haven't had any parents cough at that amount. They've been happy to pay it.




You sir, are breaking the law if you are charging that amount.
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John_ESL_White



Joined: 12 Nov 2008

PostPosted: Wed Mar 25, 2009 8:51 am    Post subject: Reply with quote

thematrixiam wrote:
John_ESL_White wrote:


My K friend also recommended that I charge 230K/mo for 3 classes/ wk for my own classes. I haven't had any parents cough at that amount. They've been happy to pay it.

1 student X 3, 50 minute classes a week = 200K +/month.


what about 2 times a week? or 1 time a week?

I'm in bupyeong... not super rich area.



Bupyeaong is NOT the country. It's Seoul Lite.

2 times a week/ 1 time a week? What are you talking; one on ones, small classes?

A one on one once a week is worth about 40-50 K/ hour for basic conversation, more if you have some experience.

Cut the fee if they want a one on one more than once a week.

If you are trying to do an apt., school then you need to get your kids' parents to commit to 2 times a week or three times per week.

Ultimately, you want classes of 6-10, coming three times per week, paying 200-250/K month. Teach 2-8 or 2-10 if you have the energy and are greedy (like me).

6 classes a day. 6 kids a class.

Of course, kids come and go....and it's not easy running the show.

Having a Korean teacher is a PLUS. And, they are dirt cheap. make a friend and talk them into helping you. The girl at the local coffee shop that speaks OK English makes 3000/won an hour, if she's lucky. So, imagine what you can do if you find the right person who has a good personality... Just go for it. Its not rocket science, but it's not the exam for a british PhD either. It's somewhere in between really hard and stupidly easy (UK PhD). U can do IT!!!!!
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ontheway



Joined: 24 Aug 2005
Location: Somewhere under the rainbow...

PostPosted: Wed Mar 25, 2009 9:33 am    Post subject: Reply with quote

John_ESL_White wrote:
thematrixiam wrote:
John_ESL_White wrote:


My K friend also recommended that I charge 230K/mo for 3 classes/ wk for my own classes. I haven't had any parents cough at that amount. They've been happy to pay it.

1 student X 3, 50 minute classes a week = 200K +/month.


what about 2 times a week? or 1 time a week?

I'm in bupyeong... not super rich area.



Bupyeaong is NOT the country. It's Seoul Lite.

2 times a week/ 1 time a week? What are you talking; one on ones, small classes?

A one on one once a week is worth about 40-50 K/ hour for basic conversation, more if you have some experience.

Cut the fee if they want a one on one more than once a week.

If you are trying to do an apt., school then you need to get your kids' parents to commit to 2 times a week or three times per week.

Ultimately, you want classes of 6-10, coming three times per week, paying 200-250/K month. Teach 2-8 or 2-10 if you have the energy and are greedy (like me).

6 classes a day. 6 kids a class.

Of course, kids come and go....and it's not easy running the show.

Having a Korean teacher is a PLUS. And, they are dirt cheap. make a friend and talk them into helping you. The girl at the local coffee shop that speaks OK English makes 3000/won an hour, if she's lucky. So, imagine what you can do if you find the right person who has a good personality... Just go for it. Its not rocket science, but it's not the exam for a british PhD either. It's somewhere in between really hard and stupidly easy (UK PhD). U can do IT!!!!!




Of course, you have to be carefull, because these rates are illegal.

The maximum legal rate for a hogwan in Korea is approx. 7,500 won per hour (slight variations based on location may be found). There are maximum rates for at home teaching as well. The maximum rate does NOT depend on class size. One or twenty students, the maximum rate per student is the same.

12 hours per month (3 hours per week), maximum legal rate = 90,000 won per month
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John_ESL_White



Joined: 12 Nov 2008

PostPosted: Wed Mar 25, 2009 10:18 am    Post subject: Reply with quote

lol. yes. please obey the law. lol.

JFC
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meangradin



Joined: 10 Mar 2006

PostPosted: Wed Mar 25, 2009 1:58 pm    Post subject: Reply with quote

Quote:
lol. yes. please obey the law. lol.


OP, you can shrug off the law, like the quoted guy, but you should be aware of the legal standards applied to home schools. Not to scare you, but it is possible you will be reported by a hagwon or a fellow home school owner if you break the law. I am sure it is not hard to imagine how jealous and protective a hagwon owner will be when it comes to losing students. A friend of mine received a nice visit from the police one night while she was teaching. You can imagine how professional that looked to her students. My advice is that you follow the law as much as possible. This means you can not hire anyone, you can only charge approx. 80,000/month per student, etc...
Also, disregarding legalities, do you really want the students parents walking in and out of your house as they feel like it? This is a definite reality of home schools! Parents feel the right to come and check up on their children as they see fit. This is the number one complaint my friends have who run these types of schools. Not to mention you have the kids in YOUR house. Why not just open a small hagwon? My wife and I just opened a small hagwon, and I am floored by how well it has been received - 40 new students in 3 weeks.
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Juregen



Joined: 30 May 2006

PostPosted: Wed Mar 25, 2009 2:53 pm    Post subject: Re: hogwan cost per hour? Reply with quote

thematrixiam wrote:
hey guys.

Just wondering how much hogwans charge for an hour lessons. I am looking to start up privates with classes of up to 6 people. I was thinking 35 per hour.

my wife is telling me they pay 120 for 1 month of lessons. 5 times a week for 1 hour lessons. that's roughly 5,400 per hour... I can't imagine that being right.


well

I ask 120.000 for 2 hours per week for a class size of four
which comes down to 15.000 per hour per person and 60.000 per hour for the teacher.
This is also just above the legal maximum one can ask in respect to price per person.


BUT
If you do privates legally, there is a maximum that you can ask per person, but not the number of people that are allowed in the class.

If you do privates illegally, well that is your judgment.

But asking 35.000 per hour for 6 people is a very reasonable price, and if I might tell you, the market in privates asks at least 50.000 per hour.

Of course not per person ...

Asking 50.000/hour and working 20 hours per week will net you 1M per week and 4M per month.

Do not forget you are taking all the risks, and risks should be compensated.

But you better show them quality and results
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thematrixiam



Joined: 31 Oct 2007

PostPosted: Wed Mar 25, 2009 3:08 pm    Post subject: Reply with quote

well to clear things up.

I have my f2.
I have my tutoring license.
And the 7,500/90,000 is way off what my license clearly states I am legally allowed to charge.

I can have a max of 9 per class. I am thinking 6. Just makes my life easier.

not sure of the legality of hiring someone to help out. But having my wife around would probably help. I have never used a korean teacher/helper for teaching before.

I originally have it set so I was going to do 5 beginner classes 2 times a week. 4 intermediate 2 times a week. And 4 advanced 1 time a week. max 6 per class.

I was thinking of charging all six people 35 per hour. which comes out to about 280 per month.
if I go by the rate of 200 for 3 days a week, that's roughly 16,666 per hour. it ends up to be 133 per month.
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meangradin



Joined: 10 Mar 2006

PostPosted: Wed Mar 25, 2009 3:30 pm    Post subject: Reply with quote

Quote:
And the 7,500/90,000 is way off what my license clearly states I am legally allowed to charge.


What does your license say you can charge? Are you saying that you can charge more or less than this figure?

My hagwon license states that I can charge 83,000 and my Korean wife can charge 73,000 for a total of 156,000 month IF we teach a minimum of 30 hours a month - but the government accepts 40 minute classes as an hour. If we teach over the minimum (more than 30 hours a month), then we can charge a little bit more, but not much more. Also, if the students at a higher level, then you can charge a little bit extra.

I very much doubt you can charge more than this, especially if you are teaching a class for only 2-3 hours a week, as the home tutors license is subordinate to a hagwons license.

BTW, I originally thought you were going to charge each student 35,000/hour. But, it seems that you are going to charge 35,000 for the class which = 6,000 / per student (if you have 6 students in a class) x 8 times a month = approx. 50,000 a month. This should make you very popular; but not with local hagwons.


Last edited by meangradin on Wed Mar 25, 2009 5:05 pm; edited 1 time in total
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