Before You Discount Your Music Lesson Rates, Try This

The topic of teaching rates seems to be one of the most fraught for independent music teachers.

First, the task of assigning a specific numerical value to our time is challenging. We might constantly worry that we're either overcharging or undercharging. And that's before we consider what we actually need to charge in order to make a living.

Why We Feel Pressure to Lower Our Rates

Even once you've set your rates, you might still feel persistent pressure to lower them or offer discounts.

You might fear coming across as unkind if you decline to discount your rates for families who say they can't afford them.

You might feel uncomfortable charging what you feel your time is truly worth, especially if your rates are higher than those of other teachers in your area. (And you might fear losing students to these teachers.)

These concerns can make it hard to stand up under the pressure to lower your rates in certain situations.

Before You Discount Your Lesson Rates

Setting your rates is, of course, something that should be done only after careful consideration of a number of factors. These factors include your music education and teaching experience, and the amount of money you need to make to pay your bills and sustain your business.

Let’s assume for the sake of this conversation that you’ve set your rates after careful research and thought. Once you've done this, it's important to protect those rates if at all possible. Here are some supportive reminders to bolster you when you feel your confidence or resolve waning.

1. You’re running a business, not a service hobby. If you need the income you make from teaching to pay your bills (and I assume you do if you’re reading this blog), then you are a business owner first and a music teacher second. Period. There is no shame in needing your business to make money. I guarantee parents understand this because someone in their family is earning a salary if they’re paying you in the first place. 

2. What other teachers charge is none of your business. Of course, you shouldn't determine your rates in a vacuum; it’s good to know what some other teachers in your area charge and the basic socio-economic status of your target clientele. But this shouldn’t prevent you from charging a higher rate if you feel that your particular offer, education, and experience warrant it.

3. Charging higher rates can make you more desirable, not less. It may be hard to believe, but when I raised my rates significantly I actually received more lesson inquiries, not fewer. Higher prices convey confidence in what you offer, and suggest a service that’s higher quality and more exclusive. For every parent that won’t pay your rate, there are more who gladly will to receive a premium service. Focus your energy on finding those clients rather than reducing your rates to satisfy the clients you have.

Three Appealing Alternatives to Discounting Your Rates

I'm not a fan of reducing fees because you lack confidence in your worth, or feel you must in order to be competitive. I am, however, a fan of offering specific types of fee reductions that enable you to:

• demonstrate a core value (such as offering lower cost lessons to families in need)

• solve another problem (such as increasing parental involvement or increasing student practice)

• provide a short-term enticement as an "on-ramp" for new students

Here are three appealing alternatives to lowering your rates on a permanent or ad hoc basis.

1. Offer a temporary discount with a set expiration date. Keep in mind that parents might well feel differently about your rates once you’ve had a chance to click with their child and help them experience some small “wins” on their instrument. So I think it’s fine to offer a pre-set, limited time discount (no more than a month) for new students as an enticement to get them to enroll. After that, your regular rate kicks in. No extensions or exceptions.

2. Offer a scholarship or two. Offer a scholarship or two (depending on what you can afford) based on need or merit. Have students apply. This enables you to offer a well-deserved or much-needed discount on a limited basis.

3. Offer a reduced lesson “coupon” as a prize. Use a discount “coupon” as a practice incentive for your students. For example, you could run a practice competition and offer the family whose child practices the most during the competition timeframe a limited time, 50% off lesson coupon as a prize. (This may also encourage parents to get more involved in home practice.) In exchange for losing a small amount of income, you could encourage better studio-wide practice habits that benefit you and the students.

Before you discount your music lesson rates on an ad hoc basis in response to low confidence our outside pressure, give these 3 strategies a try.

These alternatives offer other advantages for your business as well. Each can be systematized for better management and effectiveness. They also require forethought and planning, which encourages you to pre-account for any income reduction that results from these offers. 

And finally, these more formal “discount” programs can be made available to many if not all students rather than just a few whose parents ask for a reduced fee. It’s a democratic and inclusive way to involve and encourage lots of students and their families.

And that just feels good.

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