Thursday, February 13, 2014

The Tutoring Session: The First Call Part 2


The Business End of the Call

Tutoring is the easiest part of what we do.  It would be great if we had someone else to handle all the business aspects of tutoring.  If you did that, you'd be working for a company and they'd take a little bit of your cut.  Not that that's bad...but when you get $40 from an $80 fee (true story!), it makes you wonder if that's the kind of work you want to do.

When I was working as a temp worker early in my life, I received $12.00 per hour!  Then I found out that the company charged $25.00 per hour for me.  I felt so used and exploited.  I didn't hesitate to quit without notice.  I couldn't afford anything with $12.00 hour.  As time went on, however, I realized that it's business.  I needed a job and they needed revenue.  We both benefited.

Enough about that!  Let's talk business!

The hardest parts of any business transaction is price, terms, and location.  Customers come from all backgrounds and react differently.  It's up to you to stand firm and hold your ground.  Remember, you're doing your client a favor.

Pricing
Once I get the "ok" from the parent, I start with my prices.  I immediately tell them, for example, I charge $25.00 per hour at 1 hour and 15 minute minimum. I explain that the 1 hour and 15 minutes works better with my style of tutoring.

I lay it all out to them in detail.

For example:  "Ok, so that's 1 sessions  at $25.00 per hour at a 1.25 hours for a total of $33.25.  Payment is due every 5th lesson.  So a total of $125 is due at the fifth lesson.

I then transfer that to a contract, which will be signed at the first session.  Notice how detailed I am about this part.  I'm upfront and let them know I mean business.  I value them as a client, but I also value my service.  I will provide a copy of some contracts at some point in the future for reference.

Terms
When I say Terms, I mean my rules of what's ok and what's not ok.  I cover items such as Late Arrivals, late fees, last minute cancellations.  The terms are simple and easy to understand for the customer.  There's no legal "mumbo jumbo" here.  I'm clear, simple, and to the point. For example, I tell clients "You may stop sessions at any time for any reason."  I will provide examples of terms later for reference and provide a hyperlink. These items are also included in the contract.


Location
The next discussion is about location.  I have one location that I tutor from.  In the beginning, I found myself catering to the client...sometimes you'll need to, especially if the client has special needs.   It is important to understand that I'm not trying to be a jerk about location, but you'll never survive if you go from location to location.  Either you are solid on your location or you're solid on price.

Clients are going to try to choose a location that suits them best, if that means inconveniencing you, then they will.  And why not?  They work a lot, they've got kids, and life is tough.  They've got a lot on their plate.  But the truth is that if they need to get to a Target department store, they're going to find a way.  As such, they can find a way to get to you, or increase your fee.

Location is purely up to you and your preference.  I typically choose a place that is public, quiet, and accessible to everyone.  That's usually a Barnes and Nobles, Books a Million, or a public library.  As a rule of thumb, I never use my current employment as a location.  Eventually, I'd like to have a spot that I can rent out for tutoring.

In Summation

It's your business, your terms.  When you talk with a client on the first call, make sure you cover pricing, terms, and location.  Transfer those to your contract and provide them with a copy.  Be firm during your call, but remember to be flexible where it counts  Remember, you've got to look out for yourself.

So what do you talk about during your first consult?
--Randall

3 comments:

  1. Hi Randall! I would loooove to rent out a place to tutor from. Have you looked into it at all? My goal is to get 25 students before I rent a place.

    What do you think about tutoring from a home office? I've done it with my younger sister's friends in the past and I loved it. However, I can see it as sketchy with new clients. I prefer to do a non-tutoring meeting first in a public place (Starbucks is popular) before the first tutoring session to get all the details hammered out.

    I'm moving onto a military base in a couple days and will be setting up a home office for tutoring students from base but I am a little hesitant having "strangers" in my home.

    ReplyDelete
    Replies
    1. Ok, Blogger just lost all of my previous comment... So here we go again!.

      I have looked into renting a place out. In my area it's anywhere from $800 - 1200 per month, ranging from a one room office to a small 1000 sq ft space. Those are places in the not so popular places. The popular places are way more expensive! But the places are located in good places. Most of these places offer some kind of incentive...free security system or free high speed internet.

      The rates translates to a good deal of business...but at 25 clients I think it's completely doable. Plus(crazy idea), you could rent out the space or extra offices to other tutors for a daily fee (or hourly fee). Many music recording spaces do this for bands. You could also use the place for a "tutoring conference" where local tutors get together and provide training. The tutors pay a fee and you bank! Who knows, maybe you could build soundproof rooms for musicians that are open 24 hours and they buy their time in advance. I guess what I'm trying to say is that it's definitely a good idea and you could make it work.

      As for the in home office? Yes! That's been on my mind, too! I have a few sketches of what I'd do to turn my garage into "The Tutorin Zone" I think there's many benefits. You could put up a smart board, a white board, and have all your supplies readily available. You could have computer centers and even free sodas!

      As for strangers...well, it's tough. I'm hesistant, too. But I also feel that 95% are good people and mean well. You can cover the other 5% by having a security system, rules, and distinct boundaries. Home Office also means low overhead and more money in your pocket.

      I say try it out slowly and see how you feel. If it feels good, then add more clients. Make sure your household is cool with it too!

      Update!
      I recieved a message from another tutor and she said she found a spot for only $200 a month. I started digging some more and I found some places at $250 -550. I found these on craigs list...and they're legit! I'd say you're on a good track with 25 clients!

      Delete
  2. Ok, Blogger just lost all of my previous comment... So here we go again!.

    I have looked into renting a place out. In my area it's anywhere from $800 - 1200 per month, ranging from a one room office to a small 1000 sq ft space. Those are places in the not so popular places. The popular places are way more expensive! But the places are located in good places. Most of these places offer some kind of incentive...free security system or free high speed internet.

    The rates translates to a good deal of business...but at 25 clients I think it's completely doable. Plus(crazy idea), you could rent out the space or extra offices to other tutors for a daily fee (or hourly fee). Many music recording spaces do this for bands. You could also use the place for a "tutoring conference" where local tutors get together and provide training. The tutors pay a fee and you bank! Who knows, maybe you could build soundproof rooms for musicians that are open 24 hours and they buy their time in advance. I guess what I'm trying to say is that it's definitely a good idea and you could make it work.

    As for the in home office? Yes! That's been on my mind, too! I have a few sketches of what I'd do to turn my garage into "The Tutorin Zone" I think there's many benefits. You could put up a smart board, a white board, and have all your supplies readily available. You could have computer centers and even free sodas!

    As for strangers...well, it's tough. I'm hesistant, too. But I also feel that 95% are good people and mean well. You can cover the other 5% by having a security system, rules, and distinct boundaries. Home Office also means low overhead and more money in your pocket.

    I say try it out slowly and see how you feel. If it feels good, then add more clients. Make sure your household is cool with it too!

    ReplyDelete