As a pursuer of an economics degree, it is expected that you must be having the familiarity with the subject like distinguishing between the terms like worth and value and knowing the relevance of every economics theory, even when you don’t possess the tangible degree in your hands. Hence, we all see a reason that as a person, you are precisely aware of charging your services for economics classes that satisfy the demands of your client base. According to the reports, private tutoring is soon set to be a global industry. Which means that people in future are ready to pay a heavy amount for quality instructions.
As a prudent economic teacher, you should make claims for all your shares; however, this also entails a lot of critical analysis in the entire procedure. The crucial aspects are your wisdom and ability to disseminate, but the problem lies in measuring. If you start charging for every hour of tutoring the economics classes, there is a probability that the prices will be too high, and it can also get you out of the race.
Conversely, if you set them at too low, then this can drive away from the potential customer base. On a minute’s break, you must be wondering that how can lower prices go against the mass opting for value for money? The idiom ‘you get what you pay for’ always doesn’t hold true in every instance of life. A lower price is typically an indicator that the quality of instruction offered by you will likely to be perceived as a feeble. Of course, this maxim isn’t true in all cases, as you may be a terrific economics tutor instilled with a public-spirited motive to transfer all your knowledge, even at your own expense. It doesn’t necessarily be read in a good sense in advertising copies, nor people out there in the world are ready to believe you. On this note, it is advised to combat your traditional folk wisdom in attempting to establish yourself as an efficient economics tutor.
Getting back to the original track of the article, it is coherent that the profession of tutoring is a lucrative business. Averring your share in this vast market requires dedication, finesse, and a bit of smart work. All this is achievable by merely applying the strategies of economics to discover that ideal spot where the rates are standard and competitive, and it caters to the needs of both you and your client.
Sensible people prefer marginal pricing
Implying the third principle of economics, consumers want to purchase goods and services from which they can derive the highest level of satisfaction, given their income and price value matches. The pricing of a product can be easily computed through factors like weighing the cost of material, production, quality, packaging and transportation and also through the brand value or reputation. Some further contributors to the worth of an item can be stocking, advertising, displaying, with the additional cost incurred on the salaries of the store’s employees and the cost of electricity. A sensible purchaser then balances this comprehensive pricing against its purpose, projected use, and its anticipated durability.
This pricing is much easier for tangible goods, but in the case of services, determining the price becomes difficult since it is intangible, and the ultimate results mainly drive all focus.
The restaurateur or hotelier has a basis of pricing that incorporates the cost of all goods and products they use, its establishment overheads, and wages of the staff and employees. Being a tutor of economics virtually, whatever you offer to this venture is intangible, including your knowledge, way of imparting it, experience and the inherent quality that presents you an exceptional teacher. In the context of this profession, we need to understand the disparity between the word worth and value.
While worth simply fetches a price tag, value, on the contrary, signifies the importance in the price. Your worth as an economics teacher must stabilize the value that your students get after learning a lesson from you. The proper acquisition of knowledge by your student is what finally determines the worth of you as a teacher or tutor. The price charts can be very well established based on the foundation of this vital factor.
Trade-offs met by the people
To help you understand the phenomenon, we bring forward the example of a trade-off like the balance of equity versus efficiency. To bring out the purpose of discussion we posit:
- Efficiency: In the general scenario of economics and following the knowledge and understanding of economics theory, efficiency is the property through which the society derives maximum benefit from a given resource.
- Equity: According to the law of the microcosm, we represent every student of economics as a society to help establish our concern. Equity is the property by which this aforesaid knowledge is distributed fairly among the society.
What this equation holds for you is that the time invested in preparing all the lessons, time taken in travelling, and time spent with your every tutee, are all added to the sum total worth of your expertise and knowledge. To determine the equity in a real sense, you should consider getting a higher degree in the subject for attaining a complete mastery. Unless you are financially sound, you must accomplish profit from your tutorial venture for getting equity. The per-hour pricing can be derived through all the factors discussed.
Things that get more complicated for the students:
- Does their existing financial position allows them to attend University classes and are they able to pay prices for their private tutoring in economics, independently? They might find it more convenient to earn money themselves by giving economics classes, which will help them in affording a better education.
- What is the assessed value in their opinion for grasping the principles of economics?
- How this expenditure incurred on learning will help them to strike a balance against their earning potential in getting an economics degree jobs in future?
- How do these potential economics degree courses will stack up against their future financial obligations?
So when you are setting your curriculum for your lessons, and estimating the worth of your tutorial venture, your students are contemplating about their future solvency based on what you teach and how well you teach them. In a nutshell, the whole concept can be termed as microeconomics.
Incentives attract the attention of people
Sensible people often analyse both the costs and benefits and hence they respond positively even to small gratitudes they receive, and their decisions sway accordingly in favour of something. Advertisers have the general propensity to appeal the potential customers with a free gift. The fundamental idea of gifting is treated with suspicion to most people, though the word free has been accepted more positively. There are specific ways through which you can promote and find students for your economics classes like providing small gratuities. You can organize a seminar or workshop at a discounted rate for your students, or you can engage your tutees in group sessions at nominal rates if held coaching classes.
How about arranging economics classes online? When we think online, it gives you a chance to cover topics like international economics or macroeconomics. Online enables a tutor to get rid of geographical limitations and connect with different students through the broader audience base. At SuperProf, tutors can use their webcam to deliver their classes, through which a tutee can learn economics online. Initially, you can offer free lessons, and if we look at the statistics, clients are more willing to participate in areas where there are no monetary risks involved. Irrespective of what level you teach and which subject you teach, remember that there are no confinements in assessing the rates for your tutoring sessions.
Prices offered by other tutors in your area
There are many coaching centres in your area that form a collective tutoring body, and their prime motive is to promote students learning. Besides, some households prefer the retention of qualified mentors for their children. Although it seems that charging a higher price for your tutoring services will be better, the market economy; however, states that finally, one has to accede to the needs of the society by charging a rate that suits the market in your locality. In India, the prices are considerably higher in urban cities like Mumbai, Delhi and Bangalore. In some instances, the tutor also includes the cost of travelling and time taken in their charges. The rates you fix are influenced by different parameters like your locality, the number of lessons you deliver per week, convenience in teaching via online medium, hosting seminars and examinations, etc.
The environment of learning and teaching approaches
Aside from the comparative tutor rates in your locality, there must be some rare qualities in your teaching methodology that will let you stand apart from the dozens of other economics tutors in your area. Do you refer to the school textbooks, take help from other books and online tools, or employ both techniques while teaching? Are there individual lesson plans for each student, and how will you comprehend a quantitative analysis of their improvement? The pedagogy and the learning atmosphere you provide will create a reputation for teaching excellence, and this somewhat makes you a more acceptable market commodity.
The Final Verdict
The market for the economics jobs as a tutor is similar to other subjects. It can be predicted based on underlying philosophies:
- Philosophy 1: Recognising the existing trade-offs doesn’t indicate how decisions need to be considered according to it.
- Philosophy 2: Remember about marginal pricing, and hence you should price yourself competitively for your area and level of expertise.
- Philosophy 3: Incentives appeal the attention of people, so offering small gratuities will act as a good promotional strategy.
- Philosophy 4: Getting exposure to potential clients can only be achieved by entering the market. The market is the medium that organizes all the economic activities under its umbrella.
There are ten principles of economics as per Professor Gregory Mankiw, and you can refer to other ones for achieving the best solutions for your tutorial venture.