Understanding Supply and Demand in Tutoring

We often hear that power comes from the balance of supply and demand, a notion deeply ingrained in economics.

However, what does this mean for tutors like us? How does this age-old principle apply to our business?

To put it simply, tutors, especially independent ones, operate in a market where the dynamics of supply and demand can define our reach and influence. Yes, like the famous saying about land ownership, "Buy land, they ain't making anymore," this can apply to our skills too. Sometimes it's not just about scarcity but perceived scarcity that grants us power.

Monopoly of Essential Needs: Are You a Utility?

Think of your utility company. It probably holds a monopoly in your area, supplying essential services like electricity and water. This unique position allows them to practically set their own prices. As tutors, the goal isn't so different: to be indispensable. This could mean being the only source for a specific subject or teaching method, or even a preferred source due to your unique approach.

The Tools of Influence: From Marketing to Performance

We can establish power in multiple ways: system advantages, advertising, marketing, and of course, performance. The ability to consistently deliver high-quality tutoring sessions can set you apart. But let's talk about the crown jewel: true economic advantage.

Seeking True Economic Advantage

Ultimately, what we're striving for is a true economic advantage. This can often be achieved by being an unrivaled source of valuable expertise. Easier said than done, right? After all, it seems like everyone and their grandma is an "expert" these days.

Stop Thinking, "How Much Should I Charge for Tutoring Per Hour"  and Instead Figure out What Makes You Unique

The key to standing out? You have to be the one and only source of your specific expertise. That involves defining what makes your tutoring unique and then communicating that in a way that resonates with your target audience.

Why You Should Ditch the Price List

In creative fields, like writing or consulting—and yes, tutoring too—having a fixed price list can be detrimental. When you publicize set fees, you're essentially making yourself as interchangeable as a grocery store tomato. Potential clients will compare you based solely on price, without considering the unique value you bring to the table.

The Hidden Danger of Low Fees

It's a myth that the lowest fees attract the best clients. Quite the opposite; low fees often attract clients who undervalue your services. They see you as easily replaceable and are often more trouble than they're worth. You might think you're gaining an advantage by being affordable, but you're really setting yourself up for a race to the bottom.

The Takeaway

In the realm of tutoring, being aware of the principles of supply and demand, uniqueness, and economic advantage can set you on the path to success. Remember, don't undersell yourself; define your unique expertise and let your performance do the talking. Say goodbye to the price list and focus on delivering value that is beyond comparison. This is how you build a tutoring business with staying power.