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Not everybody is numerate enough to do the math that installment billing entails. Sad but true. In the UK, this kind of billing is unusual for any kind of service, let alone music lessons. Even if people actually read your contract, you can't be sure they have the math skills to intepret it

This is very true. I found myself explaining it several times to some people. They never asked of course, when they got 5 lessons and it seemed as though they were only paying for 4, but when they got only 3 in the month and their rate didn't go down, then questions sprang up.

Based upon what I have seen in this thread, the angry mom will be angry regardless of what you do or accomodations that you try to make. Sadly, you are probably better off without her.

One accomodation that you could make, if you wanted, is to allow one or more students to pay by the lesson. Calculate the average cost per lesson (annual fees divided by 48), then charge 10 or 15% more for each individual lesson. For example, if you charged $960 per year for 48 lessons, (average of $20 per lesson), charge $25 for each lesson, payable in advance in cash. Each week, collect the payment for the following week. Recitals, parties, etc., would also be billed by the event. Pretty soon students and parents would be asking for a simplified system, which is what you already have.

Hop

Maybe. And then again, maybe not. If people _perceive_ a billing system as inequitable -- even if it really isn't -- they won't necessarily be persuaded otherwise by convenience.

Oddly, it's not the amount of money apparently lost that's the problem in my experience -- it's people's unwillingness to think somebody has got the better of them, even for pennies.

I think the only solution is patient, thorough, and possibly repeated explanations. You could even point out that you'll be able to keep your prices down for longer because you'll spend less time banking. But, as I said before, if people lack the math skills to understand that the fluctuating mumber of lessons in a month doesn't lead to inequity, it's always going to be a struggle.

[quote=kevinbMaybe. And then again, maybe not. If people _perceive_ a billing system as inequitable -- even if it really isn't -- they won't necessarily be persuaded otherwise by convenience.

Oddly, it's not the amount of money apparently lost that's the problem in my experience -- it's people's unwillingness to think somebody has got the better of them, even for pennies...if people lack the math skills to understand that the fluctuating mumber of lessons in a month doesn't lead to inequity, it's always going to be a struggle.
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Good point. How about this: pick a period of time (a quarter of a year, a semester, a year, etc.. Count the number of lessons, divide it into the amount you charge for that period of time, and establish a rate for each lesson. Let's say its $25 per lesson, based on 48 lessons per year. Then explain to your students that while you normally bill by the year, you will accept monthly (or quarterly, or semester) payments instead without any penalties or interest.

Of course, there are going to be some people who are unhappy no matter what you do, so you might as well accept that as a fact of life.

Hop

However, as a private piano teacher, you do have the option of not working with these unhappy people.

Why you most teachers just make thing complicated, like a mechanic trying to hide fee. Just make a calendar showing the teaching schedule, and charge them based on the number of lesson. Nothing is hidden. For any reason piano teachers love to play this kind of game. Thanks God that my piano teacher is straight forward. No signing of policy etc.

The process is:
I come, I take lesson, and I pay....that is it.

Ronald:

First of all signing a policy means that the teacher gets protected. It's a freelancer's job and this kind of thing is needed.

Then it's the simple matter that with your idea, the student (or parent) will think that they are paying only the lessons they receive which shouldn't be the case. If a slot is booked in my weekly calendar this means that I won't be booking another student there. If the student decides not to show up, I still need to get paid, becuase I could have another student who is coming normally.

Then it's the hussle of having different fees every month. This is getting tedious for quite a few parents here: A month it's 150$, then it's 210$, then it's 180$ and I don't know what. A home needs to organise, as well as the teacher.

After all since exams are yearly, we tend to charge yearly: A flat fee for the year. However they want to pay it is fine, but in the end it's a yearly fee we are charging, rather than a lesson fee.

I know what you mean about those mechanics! There's a reason why I stopped taking my car back to the dealership to fix anything. You bring the car in for one problem, and they find seven others.

But, come on, piano teachers are not trying to rip anyone off here. Give us some credit, please.

To solve the issue of the 'math-illiterate,' I actually write out a calendar page.

It shows the dates of the year, what lessons are held on which days, etc etc etc. Then it explains how many lessons there are and which months they receive only 3 or the ones where they receive 5.

So far, two people have complained. I simply took out the calendar again, showed them what they agreed to and how I figured it out (which I explain to before they sign anyway, but hey, what are you gonna do), and then that problem is solved.

@Hop: your system defeats the whole purpose.

For the kind of reasons I've alluded to, this remains very much the normal practice in the UK. Not just for music tuition, but for all kinds of private tuition. Where we pay for more than one session, it's nearly always school terms or half terms, and we work out the number of weeks in the term or half-term and multiple by the hourly rate. Any other expenses (books, exams, etc) are billed separately.

The one exception I can think of is my son's karate teacher, who has announced that he will be charging a monthly flat rate based on so-many teaching hours per year. So far everybody seems happy enough, but I predict that it won't be long before somebody realizes that there's only two teaching weeks in December and then there will be a fuss. I think I'm the only customer who's taken a calculator and worked out what the hourly rate comes to.