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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

To raise the price of my fee for existing clients?

24 replies

SummerSpring · 20/04/2018 22:26

I am a private tutor and have been so for the last 6 years. I have some clients that I have been working on a weekly basis with now for over a year and have built good relationships with. I have not raised the fee in that time.

Recently I had a change of circumstances and moved house, my living expenses have increased and I am spending more money on travelling to their homes. I have also accepted new clients who are paying a higher rate and have interest from others who are also happy to pay the higher rate.

I am considering letting them keep the current rate until the end of the summer term, then telling them that from September the rate will be increasing by £5 an hour. Do you think this is unreasonable or will put people out? I don't want to build a bad name for myself but its unfeasible to keep the older clients on the old, cheaper rate when I have people that would willingly pay more.

OP posts:

Somerville · 20/04/2018 22:28

You need to establish the going rate for a tutor of your qualifications/expertise. If you're charging below it at present then it's fine to raise your fee, but make sure you give a terms notice. (So let them know now ready for September).

Fruitcorner123 · 20/04/2018 22:29

I think that increasing by £5 in one go is a bit much. I would say £2.50 increase this September and plan to do the same next year.

This partly depends on exactly how much you are charging in comparison to other tutors in your area

Colonelpopcorn · 20/04/2018 22:31

You should absolutely raise the prices on a regular basis. I’m not sure if £5 is reasonable as I don’t know enough about your work. You are running a business, don’t sell yourself short.
I didn’t put my prices up for 5 years and when I really needed to it was very difficult to increase more than a £1 or 2.
As you’ve mentioned, give plenty of warning to give people time to get used to it.
You will get moans, but it’s tough, you don’t work for the good of your health.

ThePinkOcelot · 20/04/2018 22:32

A £5 increase is a bit much tbh. Hardly your clients fault that you have had a change of circumstances.

Calic0 · 20/04/2018 22:33

You are entirely within your rights to raise your rates.

However, your clients won't care (professionally) about your changed circumstances. They will care about whether your rates are still competitive or not. So, presumably, if you can demonstrate that you'll still be ok.

Original poster

SummerSpring · 20/04/2018 22:37

I am actually already charging less than the going rate for the area. It's difficult to work out a pricing strategy as you have people working for very cheap (£15ph) and very expensive (£50ph)! I am around the middle.

The fact is I have accepted new ones at the current rate + £5 and know that I could get more clients on that rate as I have interest all the time. So as much as I enjoy working with the families and have the best interests of their children at heart, it seems foolish to continue teaching them on the lower rate when I could be getting more.

OP posts:

MaggieFS · 20/04/2018 22:38

What's your current rate and/or what's £5 as a % increase? Can't see anything wrong with increasing and giving good notice, but it sounds like an huge hike, unless you currently undercharge compared to what they would be paying someone else.

PurpleSea · 20/04/2018 22:39

£5 doesn't sound reasonable. I haven't raised prices for existing clients in the 5 or more years they've been with me but may increase by £1 in September. I'd never dream of asking for £5 more unless my fees were vastly less than the going rate and even then I'd probably lose a few clients who would consider it too expensive.

FVFrog · 20/04/2018 22:40

Totally justified. Give notice now for price rise after the summer term. You are running a business.

MaggieFS · 20/04/2018 22:40

Cross post!

Sounds like you'd be justified to charge more. Either it's your business and you charge what people are willing to pay or your being altruistic and not charging going rate and effectively subsidising it yourself for your chosen reasons. Sounds harsh, but ultimately it's supply and demand if you want to maximise income.

akkakk · 20/04/2018 22:41

A good business approach is to not be scared of losing clients... if you can earn +£5 then putting your price up is fine... in education circles it might be more normal to give a term's notice which would mean January, but it isn't unreasonable to give c. 5 months notice for September - just do it.

WhataLovelyPear · 20/04/2018 22:42

I work in a different field to you, but I've had the same issue. I basically worked out a new rate based on the going rate/what I was charging new clients and then wrote to the ones needing an increase, pointing out that I hadn't increased their fees for however many years and then said that in order to cover increasing costs I regretfully had to increase my prices. I gave them a few months notice and then did it. No one complained and I wished I'd done it sooner!

3boys3dogshelp · 20/04/2018 22:51

I think you should have a price increase but you should be very careful how you word it to your clients. You should be charging what you are worth as a tutor which is not affected by how far you drive to their house after you have chosen to move further away. I wouldn’t mind a rate increase, I would mind paying for your extra travelling costs.

Viviennemary · 20/04/2018 23:01

An increase of £5 an hour is a fairly big increase so YABU to increase your fee for your existing clients by so much. Just increase it by a smaller amount.

gillybeanz · 20/04/2018 23:04

Put your price up to your worth, which is what your new clients think you're worth.
A good time to review your terms and conditions too.
Send an email to all your clients for new signatures, to the changed fees and t/c's
All small businesses / self employed should do this from time to time.

bridgetreilly · 20/04/2018 23:07

Do it. Give people plenty of notice but don't give excuses. You know you're worth the higher rate because others are willing to pay it. If your older clients want to leave, that's totally fine.

PerspicaciaTick · 20/04/2018 23:08

How about increasing it by £5 an hour but offering a reduction for paying for blocks of sessions up front. So if you used to charge £25/hour, increase your rate to £30/hour but offer £170 for 6 hours paid for in advance (giving clients a saving of £1.50 per hour).

Celebelly · 20/04/2018 23:12

Charge what you are worth. You'll probably find that you replace the clients who won't pay that with new clients who will. You can grandfather current clients in as a goodwill gesture (maybe tell them that you are putting your prices up but they will remain at the current level for current clients for three months, etc.)

KeepServingTheDrinks · 20/04/2018 23:22

Do you have any sort of agreement/terms and conditions/contract with your existing clients? And if so, does this mention increases in fees?

If your arrangements are very informal, then I think it's fine to say (in writing) "there's been no increase in costs of tutoring in xxxx period of time, but unfortunately this can not continue indefinately, so from September 2018 my hourly rate will increase by xxx amount to yyy amount"

I agree with PPs that you shouldn't say WHY the costs are going up (your increased travel). As PPs have said, that's not the problem of your clients. Just state that they ARE.

Be prepared to lose some if it comes down to it.

I agree that September - the new academic year - is a good time to bring your new charges in.

If you do have a contract/terms and conditions, I hope these do state that fees will be reviewed annually (code for "going up", and if they stay the same, the customer feels they've 'won').

Good luck.

Ki0612 · 21/04/2018 00:04

That's a really big increase. You don't tutor families indefinitely- I'll keep them at same rate or small increase- £2 and charge new clients ur increased rate.

Userplusnumbers · 21/04/2018 00:10

If you've got interest from others then you might as well, you don't owe them any loyalty, I'm sure if their circumstances changed they'd have no trouble dropping you - you're offering a service, you're within your rights to charge the going rate.

QuackPorridgeBacon · 21/04/2018 10:49

It does sound like quite a chunk (I couldn’t afford a tutor anyway) in one go. I think giving them a few months notice and maybe gradual increases or like the idea above, if they pay in advance it’s cheaper is a good idea. I don’t know tutoring rates or how it works etc so if you have people willing to pay the new price then it should be ok.

Pengggwn · 21/04/2018 11:12

You can raise your prices whenever and by however much you like. It is a transaction. If they don't think the price increase is justified, they can go elsewhere. The question is whether they will, and I think it depends how close you are to the upper end at the moment. £15 to £20, I wouldn't even question it. £40 to £45, they would have to be very good.

Pengggwn · 21/04/2018 11:13

And I wouldn't do it incrementally. That pisses people off: "But you only raised the price four months ago!" No, if you think you're worth the extra fiver, charge it.

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