QUALITY TEACHING HAS ITS PRICE (A Homestudy Course)
Additional Resources and Information 1
Preface 3
Introduction: Freelance Teaching as Your Dream Career 5
SECTION 1 : UNDER EARNING PATTERNS 9
1.1 WHY IS IT SO HARD TO GET A DECENT LESSON RATE? 9
What is Under Earning? 11
HOW UNDEREARNING EFFECTS THE QUALITY OF YOUR RETIREMENT 11
HOW FREELANCE TEACHERS UNDEREARN 13
Why Is It So Hard To Get a Decent Lesson Rate? 15
‘MONEY IS WHAT MONEY DOES…’ 16
MIRROR, MIRROR ON THE WALL; WHO’S THE BEST TEACHER IN THE SCHOOL? 16
MIRROR, MIRROR ON THE WALL, WHO’S THE BEST TEACHER IN THE LAND? 17
Murdering Ghosts in ‘The Fog’ 19
SIX WAYS IN WHICH GHOSTS CAN STEAL OR MURDER YOUR BUSINESS 19
1.2 SELF CONFIDENCE 27
What Ball and Chain Shackles Most Freelance Teachers? 29
DO FREELANCERS UNDEREARN BY CHOICE? 30
WHAT UNDEREARNING IS—AND ITS CONSEQUENCES 30
FOUR TYPICAL REASONS FOR NOT EARNING ENOUGH 31
The Hummingbird Effect 35
PERFECTIONISM (WHEN, WHEN, WHEN, WHEN…) 36
ARE FREELANCE TEACHERS MAKING EXCUSES AND ENDING UP PENNILESS? 36
FEELING AFRAID DOESN’T MEAN YOU AREN’T QUALIFIED TO TEACH 37
QUALIFICATIONS ALONE DON’T MAKE BETTER TEACHERS 37
Why You Should Revalue Your Teaching Skills 39
THE CASE OF THE HOMEWORK HELP 39
TAKING TEACHING SKILLS FOR GRANTED IS A RECIPE FOR DISASTER 39
REVALUING TEACHING VALUES 40
The Ill-Fated Strategy of Accepting ‘The Going Rate’ 43
THE ‘GOING RATES’ IN FREELANCING 44
SET YOUR OWN FREELANCE TEACHING SERVICE PRICES 45
PRICING IS BASED ON THE FIRE IT PUTS OUT 45
1.3 THE ROLLER COASTER TEACHING CAREER 47
The Teacher’s Resentment Number 49
WHAT IS THE RESENTMENT NUMBER? 51
The Career Roller Coaster 53
DO YOU ACCEPT EVERY JOB—JUST FOR THE WORK? 53
Can You Charge Fair Prices for Teaching? 57
THE THREE-YEAR DEATH CYCLE 57
LACK OF MONEY CHOKES MANY TEACHING SERVICES 58
WHAT HAPPENS WHEN TEACHING RATES ARE TOO LOW? 58
WHO IS AT RISK OF PRICE DUMPING? 59
CAN THE MARKET PAY WELL FOR QUALITY TEACHING SERVICES? 60
WHY YOU SHOULD DEMAND AND RECEIVE ACCEPTABLE PRICES 60
SECTION 2 : THE THREE-PILLAR BUSINESS CONCEPT 63
2.1 YOUR TEACHING BUSINESS IS YOUR TEACHING CAREER 63
Global Recessions Are A Teacher’s Best Friend 65
WHY NOW IS THE BEST TIME TO START 66
GLOBAL RECESSIONS 66
1. MONEY IS SCARCE (OR IS IT?) 66
2. RECOGNITION IN THAT WHAT YOU ARE DOING, YOU ARE DOING WELL 67
3. FREEDOM IS HAVING ENOUGH MONEY AND TIME FOR CHOICES 68
TEACHING HAS AN INHERENT PROBLEM 68
Three Pillars Supporting Your Teaching Business 69
THE MISSING LINK 70
THE THREE-PILLAR BUSINESS CONCEPT 70
THE THREE-PILLAR BUSINESS STRUCTURE IS ABOUT UNDERSTANDING THE CONCEPT OF TIME 72
YOUR COMPETITION AS A SOURCE TO INCREASE YOUR INCOME 76
CAN THE THREE-PILLAR CONCEPT BE USED IN ALL TYPES OF BUSINESSES? 78
SHOULD FREELANCERS START WITH LEVERAGE? 79
‘HOW DO YOU MAKE IT MONEY-WISE UNTIL YOU GET ENOUGH REVENUE FROM YOUR BUSINESS?’ 80
SECTION 3 : THE PRICING PARAMETERS 85
3.1 IMPORTANT CONSIDERATIONS 85
Should I Work For Educational Institutions? 87
UNDERSTANDING OUR BUSINESS 88
IS THERE A PRICE TAG ON SUBCONTRACTED AND ASSOCIATE JOBS? 88
CAN ASSOCIATE JOBS BE A STEPPING STONE IN YOUR CAREER PATH? 89
THE INDEPENDENT FREELANCE TEACHING PRICE TAGS 90
THE ENTREPRENEURIAL FREELANCE TEACHER BENEFITS 91
Acceptable and Unacceptable Teaching Rates 93
FREELANCE TEACHERS ARE A COMMODITY 94
‘WHEN YOU’RE A FREELANCER YOU TAKE WHAT YOU CAN GET’ 94
GEOGRAPHIC INFLUENCES IN SETTING PRICES 95
HOW FREELANCING WORK AND A FREELANCE TITLE INFLUENCE PRICES 95
SPECIALISTS WORKING FOR EDUCATIONAL INSTITUTIONS 96
Why Specialising Gets the Best Price 97
FIRST IMPRESSIONS COUNT—A LOT 98
THE MARKET PAYS DIFFERENT RATES FOR DIFFERING LEVELS OF EXPERTISE 98
FACTORS INFLUENCING A FREELANCE TEACHER’S LEVEL OF INCOME 99
ARE WE COMPARING APPLES WITH ORANGES? 99
3.2 ABOUT PRICES AND DISCOUNTS 101
It’s Carved in Stone 103
WHAT DO YOU DO IF A CUSTOMER WANTS A DISCOUNT? 104
THE RULE OF THE 3 FS (WHEN CONSIDERING ALTERNATIVE PAYMENTS) 104
THE REMORSELESS WAR ON PRICES 104
SEVEN YO-YO WHEELS IN DISCOUNTING 105
Extraordinary Lesson Preparation Time 111
WHAT IS YOUR PRICE? 112
NOT ACCURATELY INVOICING WORK 112
TO CHARGE OR NOT TO CHARGE FOR ‘NEVER ENDING’ CHANGES? 114
Price Resistance—And Why You Cannot Avoid It 117
THE FISHERMEN’S DILEMMA 118
CAN FREELANCE TEACHERS BENEFIT FROM PRICE RESISTANCE? 119
3.3 TIMING—WHEN TO RAISE PRICES 123
When Is The Right Time To Raise Your Rates? 125
RAISING RATES—IS THIS REALLY BEYOND YOUR REACH? 127
Raising Your Prices Comfortably 131
WHY YOU SHOULD RAISE YOUR FREELANCE TEACHING SERVICE PRICES REGULARLY 132
KEEPING UP WITH INFLATION 132
HOW TO RAISE PRICES WITHOUT FEELING UNCOMFORTABLE 133
WHAT IS THE BEST METHOD TO INFORM A STUDENT OR COMPANIES OF AN IMPENDING PRICE RISE? 133
The Story Your Prices Tell 135
THREE REASONS WHY FREELANCE TEACHERS DON’T (OR WON’T) RAISE THEIR RATES 136
Prove It! (Researching Local Market Prices) 139
FREELANCE TEACHERS EXPECT LESS FROM THE VERY BEGINNING 139
THREE WAYS TO FIND OUT A RANGE OF PRICES YOU CAN CHARGE 140
THE CATCH TO ACHIEVING A HIGHER INCOME 142
Controversial and Conventional Pricing Methods 145
THE DIFFICULTY IN ESTABLISHING MARKET PRICES FOR TEACHING SERVICES 145
TWO SIMPLE BUT CONTROVERSIAL PRICING METHODS 145
FIVE TIME TESTED PRICING METHODS (DESCRIBED IN THIS BOOK) 146
SIX OTHER TIME TESTED PRICING METHODS 147
3.4—VALUE-BASED PRICING FOR FREELANCE TEACHERS 149
What Is Value-Based Pricing? 151
HOW VALUE-BASED PRICING TACTICS RAISE YOUR PRICES 152
DEFINITION OF A VALUE-BASED PRICE FOR FREELANCE TEACHERS 153
How Value-Based Pricing Techniques Are Used 157
PRIVATE STUDENTS AND THE EMOTIONAL ELEMENT BEHIND VALUE-BASED PRICING 159
LARGER TEACHING PROJECTS AND THE EMOTIONAL ELEMENT BEHIND VALUE-BASED PRICES 159
THE ‘VALUE-BASED POINT SYSTEM’ AND THE ‘TEACHING-SKILL TABLE’ 159
The Foundation of Value-Based Prices—The 3 Ps 163
THE FIRST ‘P’ CONCEPT: PRICE 164
THE SECOND ‘P’ CONCEPT: PERCEPTION 167
THE WIIFM TRIGGERS 170
THE WIIFM ADVANTAGE 171
THE THIRD ‘P’ CONCEPT: POSITIONING 172
The Value-Based Interview Technique 175
CHANGING THE STUDENT’S PERCEPTION TOWARDS TEACHING SERVICES 176
PRICE OR VALUE? WHICH COMES FIRST? 176
WHAT HAPPENS IF THE STUDENT BAULKS AT YOUR PRICE? 183
‘NEGOTIATING AS IF YOUR LIFE DEPENDED ON IT’ 183
AND WHEN STUDENTS STILL ASK FOR A DISCOUNT 186
SECTION 4 : BUILDING A FINANCIAL FOUNDATION 191
Before You Start 193
HOW CAN FREELANCE TEACHERS SURVIVE THE THREE-YEAR DEATH CYCLE? 194
Necessity Is the Mother of Invention 195
NITTY-GRITTY NUTS AND BOLTS 196
THREE STAGES OF PREPARATION 197
STAGE ONE—COST OF LIVING 201
YOUR AIM: WHAT ARE MY CURRENT DAILY EXPENSES? 201
STAGE TWO—ALLOWANCE MARKUP 206
YOUR AIM: WHAT ARE MY LONG TERM AND FUTURE EXPENSES? 206
STAGE THREE—AVAILABLE TEACHING HOURS 208
YOUR AIM: HOW MANY CHARGEABLE DAYS ARE AVAILABLE TO TEACH? 208
Giving Some Flexibility to Your Prices 211
A RESENTMENT NUMBER RANGE 212
IS THERE SUCH A THING AS A FORTUNE TELLER’S CRYSTAL BALL? 213
FLEXIBILITY STEP 1—THE STARTING POINT 215
FLEXIBILITY STEP 2—AVOID THIS MISTAKE 218
FLEXIBILITY STEP 3—CONTROL PRICES REGULARLY 220
The Yes-Yes Pricing Factor 221
THE CONCEPT BEHIND A YES-YES PRICE TABLE 221
AN (ALMOST) PREDICTABLE DECISION—THE YES YES PRICE 222
SETTING THE STAGE FOR YOUR NEXT PRICE INCREASE 223
THE BONUS OR EXTRA TO INCREASE YOUR COURSE OR LESSON VALUE 224
EXAMPLES OF YES-YES PRICE TABLES 225
SECTION 5 : DO YOU NEED A TEACHING SERVICE CONTRACT? 229
How to Avoid Students Not Paying On Time 231
BEING PAID ON TIME 231
WHAT HAPPENS WHEN STUDENTS DON’T PAY OR DON’T PAY ON TIME? 231
SET THE RULES AT THE FIRST MEETING 232
A CONTRACT IS A FORM OF REALITY CHECK 233
Do You Need a Teaching Service Contract? 235
WHY YOU NEED A TEACHING SERVICE CONTRACT WITH YOUR CUSTOMERS 236
ARE TEACHING SERVICE CONTRACTS NECESSARY FOR BOTH DIRECT AND ASSOCIATE CUSTOMERS? 237
What Goes Into a Teaching Service Contract? 239
TEACHING SERVICE CONTRACT—CONTENTS 240
WHAT IS USUALLY FORGOTTEN IN TEACHING SERVICE CONTRACTS? 241
THE BARE TRUTH IN MAKING A STAND AT THE VERY FIRST LESSON 243
WHICH CONTRACTS SHOULD A LAWYER CHECK? 243
WHEN THE CUSTOMER WANTS TO CHANGE THE CONTRACT OR CONTRACT WORDING 244
SECTION 6 : PUBLISHING YOUR PRICES 245
Should Freelance Teachers Advertise Their Prices? 247
THE RAMPANT WAR ON PRICES 247
WHY ISN’T YOUR PRICE ON THE WEBSITE? 248
AND A PERSONAL DECISION ABOUT THE ‘FREE TRIAL LESSON’ 249
In Which Teaching Areas Should Prices Be Published? 251
ARE YOU A FREELANCE TEACHER WHO WORKS FOR: 251
1. EDUCATIONAL INSTITUTIONS 252
2. STUDENTS AND CHILDREN 252
3. BUSINESS STUDENTS AND COMPANIES 253
Publishing Your Prices In A Teaching Partnership 255
SHOULD THE PRICES BE SHOWN ON THE WEBSITE? 255
WHAT PROVOKES AN AUTOMATIC PRICE DISCREPANCY? 255
AN ARGUMENT AGAINST DISCLOSING PRICES 256
Once Your Prices Are Made Public 257
THE BOY WHO CRIED ‘WOLF’ 257
AN IDEAL PRICING MARKET 258
WHEN STUDENTS TURN NASTY 259
SECTION 7 : WORKBOOK 261
APPENDIX A—FINANCIAL WORKSHEETS 263
Financial Worksheet—1 263
Annual Business Costs: STAGE ONE and STAGE TWO (determining your work-life balance) 263
Financial Worksheet—2 269
Chargeable Teaching Hours: STAGE THREE 269
Financial Worksheet—3 273
Calculating your resentment number range 273
Calculating your essential annual income requirement (as determined in STAGE ONE) 275
Calculating your annual income requirement (as determined in STAGE TWO) 277
Financial Worksheet—4 279
Putting your calculations together to attain your teaching rate 279
Financial Worksheet—5 285
Price Resistance 285
APPENDIX B—REFLECTION AND PRACTICE EXERCISES 293
Reflection and Practice—1 293
What Factors Affect Your Potential Income? 293
Reflection and Practice—2 297
Strengthening your freelancing career—the three-pillar structure 297
Are you jobbing? Or do you have a teaching business? 298
Nine worksheets for your three-pillar business concept 299
Worksheet 1—The business purpose behind your teaching activities 300
Worksheet 2—Managing your students 303
Worksheet 3—A marketing and sales plan 304
Worksheet 4—Professionalism and your work 305
Worksheet 5—Charging too low prices 306
Worksheet 6—Being too much of a generalist and not specialising 308
Worksheet 7—Not gratifying student customer self-esteem and satisfaction 309
Worksheet 8—Not being professional 310
Worksheet 9—Why underestimating this will affect your health 312
Reflection and Practice—3 313
Positioning Your Teaching Service to Build Your Freelancing Identity 313
APPENDIX C—CHECKLISTS 317
Checklist—1 317
Seven essential strategies to strengthen your teaching business 317
Checklist—2 319
Discount Prices and the Rule of the 3 Fs 319
Checklist—3 321
Seven reasons when to raise your prices 321
Checklist—4 323
Collecting information for your positioning statement 323
Checklist—5 327
Eight steps to follow in your price value interview technique 327
Checklist—6 331
What Goes Into a Teaching Service Contract? 331
EPILOGUE (OR LAST THOUGHT) 337
ABOUT THE AUTHOR 339
INDEX 341
WHAT FIRST READERS HAD TO SAY ABOUT THE TEACHER’S GUIDE TO PRICING MATTERS 345