>She mentioned that she is 1/2 hour outside of Seattle. . .That is a metropolitan area, similiar to the Bay Area where I live. My current teacher charges $65 an hour, so suggesting that someone with 20 years experience in a major metro area charge $40 - $50 is extremely reasonable.<
Maybe her area has too many experienced, or less experienced but as good or better teachers who are already popular among those who can afford to pay $40-50. Another problem is that nobody likes such a big increase so suddenly, so she may end up losing many students who could afford that but become outraged.
But it's true that her price being so cheap may be a problem: it was for no other reason that the word "cheap" has another connotation in English: she may not have students now who could afford to pay that higher price because they associate that low price with low quality and so are having classes with another teacher. If the price goes up her current students may stop having classes but she may have a hard time replacing them.
I don't teach singing, but as a private teacher I have a similar problem. What most teachers I know who are in the same situation have concluded is that we must vary the price according to the student, as it's better to have little than no money at all. I've had students who paid twice as much as other ones who had the same class ( I think psychologists have to do that a lot too ). I've found a way to justify the different prices: I offer different "packages", like lower price but no replacement, no short-notice cancelation, cash, "extra charged" extra material,... anything that makes MY life better and theirs stink if they pay less.
Anyway, I wouldn't change my current students' prices so dramatically as was suggested. I'd set the new prices/packages to NEW students only. If they say the one who recommended me pays less, I'd say that was my old price/package and it's not valid for new students. Make sure you really have new students accepting the new conditions and then start changing your old students'.
Best wishes,
Caio
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