Posted By: Scott Coletta
Changing business strategy - 01/06/13 01:12 AM
Hey everyone. I'm in a bit of a dilemma. It's looking like I'm going to have to close my studio at the end of May and return to driving to my students as I did in the past. This is mostly for personal reasons. In going forward with this plan, I'm thinking I'll go ahead and stop marketing lessons in my studio right now and begin only offering in-home lessons. I've been offering in-home lessons alongside studio lessons, but I've been asking for a much higher rate ($45 for 30 min) for the in-home lessons. Going forward, I want to lower the rate (to maybe $35) to make lessons more accessible to people and hopefully regain enough students to be full time as I was before moving here and opening my studio. So my problem is this... I intend to keep my current studio students and begin driving to them for lessons, but only asking for a small increase to do so, maybe $3 (making their rate go up to $30), so I don't lose them. But for the students that I currently drive to for $45, it doesn't seem fair to continue charging them so much if I'm only charging everyone else $30-$35. But, as has been mentioned here before, lowering rates makes it seem as though the service being provided wasn't really ever worth that much which undermines respect and the value of the lessons for the student. So I figure I can do one of two things... 1. Keep the current in-home lessons at the higher rate and hope they don't find out, which just doesn't sit right with me, or 2. Lower the rate and explain that the reason the rate was so high before was because of my studio. Basically, I'm thinking that because I was available to teach in my studio, back to back lessons during teaching hours, that students where paying extra for borrowing from that time to travel to their home. Plus the overhead costs of having the studio space but not using it. But without the studio, being only available for in-home lessons, the cost is justifiably reduced. Does this make sense?