Piano World Home Page Forums Our Most Popular Forums Piano Teachers Forum Lower Rates... bad idea?

Hi everyone. I'm wondering what you all think about this scenario... I've been in my new location for a year and a half. I currently have 20 students. I'm advertising on google maps, pay-per-click, and several online teacher directories, and I recently did a new website. But I seem to be stuck. I've been losing students as fast as I'm gaining them since January. In my last location, I had 35 students a year and a half after starting out, and a year later I was full with 50 students and a waiting list. So I'm not sure what's going on here. Aside from being a different area, my rates are comparatively higher than my old location, and the economy is certainly sluggish compared to a few years ago.

So I'm considering lowering my rates to be more competitive. My thinking is that I'd rather have to work more for less money, than work less for less money. Thing is, I'm not sure if it will even help. I'm concerned that I may not bring in any more students than at the higher rate, so I'll just be shooting myself in the foot. My current rates are $27 for 30 minutes and if I drive to the students I add $18 (regardless of lesson length). So I'm thinking of cutting my rates down to $25 or maybe even as low as $22, and the travel charge down to $13. If I lower the rates this much, I'd need roughly 10 students for every 8 at the higher rate to make the same income. So I just don't know if this is worth the risk to try. I've researched what other teachers in the area are charging, and my current rates are not the highest but there are alot of teachers out there with equal or lower rates. I'm just wondering if a change in the rates to put me on the lower end of the scale might draw in alot more students. When I started out at my old location, I charged $30 for half hour lessons in the student's home. I quickly filled up, but that was a bargain rate. A couple years later I had raised my rates up to $40 for the same service, but I found out other teachers were getting $50 for the same thing.

So has anybody else ever lowered rates successfully? Any thoughts about this? Or is this just perhaps the bad economy and a declining interest in piano lessons? Are you all experiencing slow to non-existent growth now too?

Why would you rather work more for less money than work less for more money? There are several advantages to doing so. You build a reputation faster; your recitals are more interesting; you may learn more about teaching because of the increased numbers.

How many phone calls have you had where you felt you lost the student based on price? If it's not many, your real problem is the area you live in or marketing. I'd try putting an ad in the community newsletter if it's a marketing problem. If your great desire is to teach many students, you need to study the demographic charts for your area and move.

You could also be content with what you're earning and concentrate on saving more money in your personal life, as well as having more time to practice, exercise, or socialize.

You might live in an area saturated with piano teachers and/or "music schools." I certainly work in an area with a plethora of piano teachers, including some who deliberately under-charge in order to hog up all the students.

I'm hopeful this economy thing will eventually turn around. My studio has been slow-go for the past three years.

Hi Scott,

Several years ago, the Tri-Cities Opera, one of the primary local “feeder” organizations for The Met and the New Your City Operas, conducted a rather elaborate audience evaluation and marketing study. One of the key questions they wanted answered was, “If we lower ticket prices, will we sell enough additional tickets to come out ahead?” Without going into excruciating detail, these were the findings:

>> Opera fans are going to go to the opera, almost regardless of ticket price (as long as productions are excellent). Most fans considered the then-current ticket prices a bargain, and were HAPPY to pay more if asked!

>> Folks who do not know, or do not care for the opera, are NOT going to attend, regardless of ticket price.

>> There was a very small group, something like 5%, that were occasional, or casual, or “social” opera goers, who maintained they would either welcome a reduction, or not attend if there were an increase in ticket prices.

From these findings, the Tri-Cities Opera (and their sister Symphony orchestra) mounted a campaign to recruit, and educate, more (new) opera and symphony fans – the kind who would attend regardless. AND, instead of lowering ticket prices, they raised them! It was a win/win solution.

Maybe this applies to your situation, and perhaps it does not. I do see many parallels.

Ed

I think your rates seem very reasonable, although I don't know the particular economic conditions of your area. However, it sounds to me like you have a decent number of students - 20 - at this rate. I think if you lower your rates, you will be telling your current students that you don't feel you're worth what you were previously charging in a subliminal way.

Instead, I recommend keeping your rates as-is, and try other avenues of gaining students. Have you been in contact with the local elementary school music teachers? Perhaps if you get to know them and give them your business cards, they will pass them out to students or parents who inquire with them about lessons. You can do the same at your local sheet music store (if one exists, otherwise a piano store). Also, don't forget to ask your students and parents to advertise to their friends for you - give them a free lesson for each friend of theirs that signs up. It gets them talking about you! Word of mouth is huge.

I would also guess that marketing is the issue rather than price. Go do some outreach--meet people and play piano. Set up a demonstration or something at a music store; have an informal performance for your current students and invite the public. Play at nursing homes. Do something interesting and get yourself in the news. Volunteer to run a music activity in a disadvantaged school. Of course, you will be passing out cards and flyers to anyone who is willing to take one!

Good point. Not many have said the rates were too high. And I guess I wouldn't have any students at all if they were.

Thanks for your input.

Yes, I don't want to be that teacher.

Ed, thanks for sharing the marketing study done by the orchestras. That does make sense and is probably very similiar to the market for piano lessons.

Yes, I was concerned about how to handle this.



I contacted all the local school music teachers last fall. Some said they would keep my name on a list, others said they weren't allowed to recommend private teachers. And I have a flyer up at the local sheet music/band instrument store.

I have thought about offering an incentive to current students for recommending me. I've always had good luck with people passing on the word, just because they like me. But it couldn't hurt to reward them I guess.

Thanks.

Interesting ideas here. I'll have to think about some of these things. I appreciate your feedback.

You might also get some of your more advanced students to learn the piano part of a duo. Then find a violinist (child preferably) or clarinetist and stage a small recital at home. People talk about things like this to their friends or neighbors.

If you can do something a little mysterious, or strange, such as owning a turtle, people will talk about you as the piano teacher with the turtle in the bathroom. You might want to be known for your brilliance as a teacher, but since your clientele really doesn't know how to compare you on that basis, it would be better to be known as the teacher who always wears a tux, or owns a polar bear rug, or has a red piano and a red slide in the yard. This last paragraph is just to stimulate conversation!

I think in this market, and it is not just cost driven, we need to come up with more ideas to attract students. Piano is hard work for most students and is time consuming. Our parents value sports and social activities more than the development of talents, skills, and abilities that have to be focused and developed. That is just our society. I don't think cost in your area is that big of a factor (opera study). So, have you tried "novelty" piano classes that other teachers don't offer: duet classes where students only learn to play together; ensemble classes where other instruments work with a piano student of a similar level, holiday theme classes where students only work on music related to a holiday, etc., adult lessons as a focus-market to adult groups like churches, senior citizens centers, etc. This could go into what ever niche you could find in your area. I personally wish I could find an adult duet only class somewhere. I love to play duets the most and as an adult I hardly ever get to play with anyone. These types of classes would involve teaching with a different style or in a different way, but what fun for the participant would have.

This might be kind of "out there"...but I live in an area where parents like compete for "best kid".

Do you have any kids you can use as advertising? For example, maybe students who did well in competitions or who got a scholarship based on music achievement? With the parent's permission you can write a press release and have it sent to the local paper and or invite the community writer to your recitals/events. You can also advertise your recital in the community section of the paper (they do it online as well and usually there is no fee for listing community events). If you can, provide a link and highlight the graduating seniors with their senior picture on your webpage. These are all free ways to be seen and parents LOVE to talk about their students and brag and your name will get out there.

How about incentive when your current student referring a new family to you by word of mouth.
Among all the advertisement that I have done so far, word of mouth is the best.
If your incentive is good enough, your current students will go extra miles for you when referring.

Have you notice any trend that you get calls and contact but they shy away when hear your tuition fee? If yes, you might want to lower your price. If no, it is just your current location of not a lot of people value piano lesson, or blame the bad economy.

Scott could always set himself on fire! That usually garners a lot of attention.

Please carefully weigh the pros and cons of self immolation before implementing it as a marketing strategy.

Have you done follow-up interviews with those who came then quit?

Why would you want to do that? What are the chances you'll gather useful and honest answers?

I'm pretty sure it was a joke.