Tutoring News Post

What is a Great Tutor Worth?

I've been in the test-prep business since 1998, when I tutored Boston high school students through a community service program at Harvard called Get Ready.  However, it wasn't until my first paid tutoring job at the Princeton Review's Providence, RI office that I started to understand the economics of the private tutoring universe.

When Princeton hired me fresh out of college, my starting pay rate was $18/hr, which at the time I considered to be an incredible sum.  Before long, I was working 50-hour weeks for the company, and making good money for a 22 year-old.  What I didn't realize until later, however, is that Princeton Review, Inc. was charging $120/hr for my services—in other words, even though I was doing all the work, the company was making five times as much as I was.

This certainly didn't seem fair, so I came up with a strategy—I would start my own tutoring service, McElroy Tutoring, charging half as much as Princeton did.  I would make three times as much as I used to, while charging less than half of what Princeton charged.  I would also be able to work fewer hours per week, thus allowing me to give each student more attention.

I set my rate at a reasonable $55/hr, started placing some ads in the local classifieds, and got to work finding a core group of students, mostly from Barrington, RI.  In 2003 I drove cross-country to San Diego, California and started slowly with a new client base, but in less than two years, I was busy with work again. 

However, there was a problem.  When my services became too popular, my schedule would fill up, my free time would slowly start to vanish, and I would become stressed.  So I came up with a solution: each time my schedule would get too full, I would inform my current students that I was raising my hourly rate—but for new clients only.  When they finished taking their tests, or sending in their applications, as my students always do eventually (most of my students work with me for anywhere from 2 weeks to 2 years), I would start anew at a slightly higher rate, and thus have to work fewer hours per week.  Over time, I would repeat this process anytime my schedule became too hectic.

Eventually, my rates became so high that they were not affordable for the average client.  This is when I started hiring other tutors. McElroy Tutoring's business model was simple: we only took a 10-25% cut of what we charged for our tutors, as opposed to the gargantuan cut that the big companies take.  As a result, we attracted some of the best teachers, tutors, and educators in the world.  For over 10 years, I employed approximately 100 tutors across the country while also maintaining my own private tutoring practice.

Today, both Rhode Island and San Diego are in the rear-view mirror:  I am back to a one-man operation based in Colorado Springs, and my basic rate stands at $495/hr.  With package discounts of up to 25%, this rate can go as low as $365/hr.  My schedule is not always entirely full, but that's OK with me, because the fewer students I have, the more individual attention I can give them.   A lighter workload means more time with my wife, kids, pets, and family, more time outdoors, et cetera—in other words, a healthier, happier, and more balanced life.

There have been times when people will call me to discuss my services, but then act shocked and appalled that a private tutor would dare demand such an outrageous fee.  At the same time, there are still plenty of others who believe I am well worth the cost. 

Sometimes these callers will mention another tutor who they are considering.  "(They) only charge $200/hr.  Do you think you are twice as good as (he/she) is?"

My response: "I might not be twice as good, but I'm definitely better."

Let me give you an automobile analogy that I frequently use to illustrate my point.  I drive a Dodge Journey with 50,000 miles on the odometer, because I see no need to overpay for a luxury car such as a BMW.  That's because in my mind, an automobile is for safely getting from point A to point B.  However, what if I were driving said car in a race, and every second counted?  Well, then you better believe that I would choose the BMW. 

My point is this: when every point counts, a professional, expert tutor is well worth the price.  And with cost comes commitment—my students work hard and pay attention during lessons, partially because they know that my services are not cheap.

Are my rates too high for an expert with 20+ years full-time experience?  Well, it's all relative: relative to the importance and stakes of the task at hand, your personal and familial priorities, your academic goals, and of course, your budget. 

I know that my rates are quite high for a private tutor, but they are perfectly average in other professions.  If you were to get in trouble with the law, would you hire a cut-rate lawyer?  Of course not.  Yes, many of my clients live in lavish seaside mansions, and have millions of dollars socked away in trust funds.  On the other hand, many of my other clients are middle-class: they simply see my educational services as a wise investment—and frequently, their investment quickly pays off through major score improvements, academic scholarships, and admission to prestigious universities that will continue to open doors for the rest of their academic and professional lives. 

This is not to suggest that price always equals quality.  There is a notorious tutor in New York who claims (emphasis on "claims") that he teaches SAT full-time at $1,000/hr, for example.  There will always be those who try to game the system and rip off gullible people.  But there is nothing wrong with a full-time professional charging a fee that is proportionate to his or her abilities, experience, qualifications, and talents.

To all the other private tutors out there: don't be afraid to charge what you are worth.  Sure, plenty of people will turn you down, but others will respect the value of your time, knowledge, and expertise.  With the time you save, you can pursue your other passions, and continue to hone your craft in other ways.

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