While there is some standardization, lesson rates are typically impacted by four major factors. Based on data compiled by Outside The Bachs, these are the factors, ranked by importance:
Self-confidence of instructor
+Location and market conditions
+Demand for trial lessons, consultations, waitlist, etc
+Instructor’s Education and experience
Things that do not influence rates include
-Competition
-Starting on your own
-Occasional student “no”
-Feedback on rates outside of a trial or consultation
1 Self-confidence of instructor
The largest factor for all rate determination is confidence.
Many instructors with significant education, experience, testimonials, location, and demand are currently undercharging.
2 Location
Cost of living has the biggest impact on rate in many areas. For areas with dense population and high cost of living, rates should be adjusted higher. For areas with more sparse population and lower cost of living, rates should be adjusted lower. If you would like to adjust your rate based on your location, finding an accurate number for this is challenging because the students you serve might live in different neighborhoods from where you live or even where your studio is located. We strongly recommend getting in touch with us on free strategy call to get support in this area.
3 Demand
Studios or teachers who are in high demand should consider an annual rate increase, and raise prices more regularly for new incoming students. Studios that remain stable but just shy of full can adjust rates over a longer period of time. Initial demand for a new studio should not be estimated. Instead, other factors should work to determine rate. (*Demand rate adjustments are often larger in high-income locations.)
4 Education & experience
For most recent college graduates, the industry standard rates are an appropriate place to start. Additional education should add roughly 10-20% per degree onto rates.
Monthly Flat Rate Tuition
Check out this article for more information about monthly flat rate base tuition rates and for the formula used in this calculator.
What to do with your rates and next steps:
Starting at the baseline rates in the first 1-3 years of teaching is advisable. Those with more experience should determine rate increases based on demand. However, rate increases on an annual or biennial schedule create an appropriate rate as experience grows.
Sometimes there are variations in rates based on payment processors, tuition, unique experiences or locations. Use this calculator only as a tool for estimation. Do not use this tool to determine your actual prices for your services. If you would like a professional review of your rates, request a free strategy session with our team and get clarity on your private music lesson business strategy!