Language Coaching Services Price Calculator: How To Price Your Language Coaching Services?
How to Determine The Price For Your Business/Service:
Our price calculator is designed to be simple and easy to use. It covers everything you need to price your online language coaching business
We hope this calculator helps you make more money for your business.
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How To Price Your Language Coaching Services
One of the most challenging aspects to starting an online language coaching business is determining how much to charge for your language coaching services.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your language coaching services, it's critical that you first identify all of your costs and consequently mark up your language coaching services so you can factor in a profit.
The actual cost of your language coaching services may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Rent
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your language coaching services, you'll want to create goals for revenue + how much profit you want your online language coaching business to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your language coaching services is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your language coaching services fits best in the marketplace.
All of these factors play an equal part in pricing your language coaching services, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Learn more about starting an online language coaching business:
Where to start?
-> How much does it cost to start an online language coaching business?
-> Pros and cons of an online language coaching business
Need inspiration?
-> Other online language coaching business success stories
-> Examples of established online language coaching business
-> Marketing ideas for an online language coaching business
Other resources
-> Online language coaching business tips
-> Blog post ideas for an online language coaching business
More Tips On Pricing Your Language Coaching Services
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
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Thanks for reading. We wish you success in your business endeavors.
Examples of a successful online language coaching business
9. Andalus Institute ($360K/year)
Muhammad al andalusi (from Barcelona, Spain) started Andalus Institute over 4 years ago.
I’m Muhammad Al Andalusi, I am a 27 years young man born in Barcelona, Spain.
10. Marlena Jorn Tutors ($2.88K/year)
Marlena Jorn (from Windermere, FL, USA) started Marlena Jorn Tutors over 2 years ago.
My name is Marlena Jorn and I am the founder of Marlena Jorn Tutors. I offer private, one-on-one German lessons to both children and adults. I currently have a website and a Facebook page. I teach my lessons through Zoom and PowerPoint, and after every lesson, I provide the student with the PowerPoint with my voice attached to it so they can practice the vocabulary/grammar between lessons.
I currently have three students, and I am currently working on building rapport and a solid clientele. Throughout my own education, I have seen a decline in the availability of the German language. I aim to reverse that and make German available to anyone interested.
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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