Pricing Models for Tutoring Services

I charged my first client only ₹200.  I undersold my services for 6 years,  before realising my worth. We now bill our clients 7 figures annually, but I realised: 90% of service providers in India (freelancer or agency) - undercharge. I know because I've been there. Here’s what I wish I knew about pricing models for services earlier: 1. Hourly rates are a trap Selling your time means you get punished for efficiency. If you’re confident in your offer, take more responsibility - promise an outcome - and deliver it. You’ll be able to charge higher. 2. Retainers are your best friend Predictable revenue gives stability. Structure monthly retainers for long-term clients. Offer them consistency, and secure your cash flow. 3. Keep an eye on revenue Forget charging according to market rates. Estimate the revenue you’re generating for your client - and price yourself at 10-30% of that. 5. Raise your prices, fearlessly The first time I quoted over 1 lakh for a project, I thought they’d say no. They said, “Where do I pay?”. It’s your own mindset holding you back. 6. The "anchoring" hack Create a premium package and an affordable one. Always quote the premium one first. → If it suits them, then you land yourself a high value client. → If it doesn’t, it makes the affordable package an easy downsell. (Because your perceived value is higher) - Also, pro tip: The clients who hesitate at your higher rates are the same ones who'll drain your energy later. So, choose wisely. What pricing model are you using in your agency? #pricing #founder #agency #growth

Struggling to price your Coaching services? #4 pricing strategies to help you charge with confidence. Pricing your services isn’t about picking a number. It’s about: - psychology - positioning - value Charge too little? You’ll struggle to get premium clients. Charge too much? You might scare away potential buyers. Here are #4 proven pricing strategies to help you find the right balance: 1. Value-Based Pricing You price your services based on the results you deliver. Not the hours you put in. Coaches sell transformations, not time. If your service helps someone land a dream job: Charge based on that value. Not just the number of calls you provide. How? → Identify the main outcome your clients get. → Research what that outcome is worth to them → Position your pricing as an investment rather than an expense. Example: A career coach helping someone land a $100K job shouldn’t charge $200 --- 2. Tiered Pricing (Multiple Packages) You offer different service levels at different price points. Not all clients have the same budget or needs. This strategy makes your services more accessible. While increasing your chances of upselling. How? → Create 3 packages: Basic, Standard, and Premium. → The lowest package should solve the core problem. → The higher ones should offer extra value. Example: Basic: 1 coaching session ($X) Standard: 3 sessions + worksheets ($XX) Premium: 6 sessions + support + extra resources ($XXX) --- 3. Anchor Pricing You place a high-ticket offer next to a lower-priced one to make it look more affordable. People tend to compare prices instead of looking at them in isolation. A premium option makes mid-range offers look like the best deal. How? → Set your highest-priced offer first (e.g., a 6-month coaching package). → Then, list a mid-tier offer that feels like a bargain in comparison. Example: VIP Coaching – $10,000 for 6 months Breakthrough Package – $3,500 for 8 weeks Feels way more affordable now, doesn't it? --- 4. Subscription Model (Recurring Revenue) Instead of charging one-time fees, you offer ongoing coaching for a monthly rate. This creates predictable income and increases client retention. People stay longer when they pay monthly instead of a lump sum. How? → Offer a membership-style coaching plan. → Make it a lower commitment than your high-ticket offers. Example: $297/month for ongoing coaching support. (e.g., monthly Q&A calls + private support) --- TL;DR Pricing isn’t about guessing. It’s about strategy. ✅ Value-based pricing positions you as premium. ✅ Tiered pricing gives clients flexibility. ✅ Anchor pricing makes your mid-tier offer irresistible. ✅ Subscription models create consistent income. PS. Which pricing strategy have you used (or want to try)? Drop a comment below.

Pricing models make or break your service business. Do you want guaranteed profits? Market share? Scale? I've helped dozens of companies evaluate their pricing. I often see arguments when it comes to pricing. - Low prices attract customers - One model is better - Price equals value None of it truly matters. What matters is understanding what you get. You can find 3 main pricing models: → Cost-Plus Pricing → Competitive Pricing → Value-based Pricing (Subscription, Freemium, Bundle, Penetration, etc.. are more commercial tactics than models). 1. Cost-Plus Pricing → Compute costs → Add a markup It gives you profitable revenue. "Guaranteed" profitability but harder to scale. 2. Competitive Pricing → Analyse competition prices → Adjust pricing based on research You can go for market shares. It is an offensive way to grow, but it can kill margins. 3. Value-Based Pricing → Assess customers' needs & behaviors → Estimate your value-added to the target customer It gives you "uncapped" and more scalable income, often favored, it can be more difficult to close. *** Depending on your industry, maturity level, and strategy all options are valuable. If you are a founder, align your pricing & your strategy.

How do I decide what to charge? 💷 Deciding what to charge for your services can be tricky, but there are a few things you can assess to help you determine a fair and profitable rate: 1. Understand your costs 💡 Let’s start with Business Expenses:  Include software, equipment, marketing, taxes, health insurance, and other costs that you need to earn enough money to pay. Now, let’s have a look at your Living Expenses:  Calculate your monthly expenses such as rent, food, insurance, and everything else you want to include in your life. Finally, you should also include your Desired Profit:  Factor in the income you want beyond covering expenses and feel confident in what you want to achieve. 2. Research the market 🔍 Secondly, take a look at your market. Look at what others in your field and experience level are charging and consider this as you’re creating your proposals. To do this, you can check freelancing platforms, industry reports, and forums. And, remember, rates can differ depending on where you live and operate, so consider if you’re competing locally or internationally. 3. Choose a pricing model 📊 This is a great way to understand how much you need to charge depending on the project and the time it will take you. There are 3 commonly used structures: ▪️ Hourly Rate: Good for ongoing work, but can cap income. ▪️ Project-Based: Great for value-based pricing, especially for well-defined deliverables. ▪️ Retainer Model: Provides steady income for long-term clients. 4. Test and adjust ♻️ Start with a baseline rate, but be flexible. As demand grows or your skills improve, you should raise your rates - and don’t be afraid to do so! 5. Think about your value 🙌 Your value and skill set should be mirroring your prices. Higher expertise justifies higher rates. And specialists often earn more than generalists. Want some advice on what to charge for your services? Send me a DM and we can have a call! 📱