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Existing client recommendation/referral

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LestratcasterLestratcaster Frets: 1079
edited December 2017 in Off Topic
I do private guitar lessons as some of you may know. I had a call about an hour ago from a parent who got my number from one of my existing clients wanting lessons. We've booked a trial lesson for Saturday morning which is great.

However, as they said its a recommendation they've asked if I can give them some kind of discount rate (i.e, pay the same fee as the person who referred them). The existing customer has been with me for 4 years and my fees have gone up considerably so I can't justify doing it for that price now. They normally pay in blocks of 10.

How should I play this? Offer the first batch of 10 lessons for the same rate as the existing customer as an introductory gesture? I've also changed my charging system to monthly blocks of 4 instead of lesson-by-lesson, and my 10 lesson rate has also gone up.

I'm getting early signs the parent is highly irritating as well (wouldn't let me get a word in at times, had to stop her to say "can I speak, please?" and they're looking for a cheap bargain. Next year will be my 10th year in doing tuition and I firmly believe my value has gone up since as well as running costs.

Advice please gents?
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Comments

  • Stick to your guns and demonstrate you value your time and that your teaching services are well worth the price. Charge whatever your current fee for new customers is. Refuse to discuss what you charge the referring customer. It's got nothing to do with your new one. 

    You already have have a gut feel that this new parent will be a PITA, so why do it on the cheap? 
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  • They've already asked what I'm charging them so by "special discount" they're implying I should charge the same price as them. But what I'm charging now compared to 4 years ago I can't live off so I don't want to do it for less.
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  • VimFuegoVimFuego Frets: 15476
    erm, why would a new client expect a discount? tell em to go fuck themselves, but politely. 

    I'm not locked in here with you, you are locked in here with me.

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  • martmart Frets: 5205
    edited December 2017
    I can’t see the logic in them getting a discount because somebody else told them about you. I could understand you giving your establish client a discount, but not the new client. Besides, it sounds like you’re giving the established client a discount already, if I understand correctly and you haven’t  raised your price for them in 4 years.

    I’d certainly recommend you stick to your guns - you’re worth the price you’ve chosen, and it’s best to start this person off with that message.
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  • mart said:
    I can’t see the logic in them getting a discount because somebody else told them about you. I could understand you giving your establish client a discount, but not the new client. Besides, it sounds like you’re giving the established client a discount already, if I understand correctly and you haven’t  raised your price for them in 4 years.

    I’d certainly recommend you stick to your guns - you’re worth the price you’ve chosen, and it’s best to start this person off with that message.
    Yeah, I have rewarded them for loyalty by not raising the rate. In fact I may give them £20 if the new client pays for 10 lessons upfront.
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  • GrunfeldGrunfeld Frets: 4027

    ...the parent is highly irritating as well (wouldn't let me get a word in at times, had to stop her to say "can I speak, please?"

    Advice please gents?
    ummm.... the "can I speak please?" surprised me. 
    As for your fees it's totally your call -- but I can't for the life of me see why a new client out of the blue should get a discount.
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  • Grunfeld said:

    ...the parent is highly irritating as well (wouldn't let me get a word in at times, had to stop her to say "can I speak, please?"

    Advice please gents?
    ummm.... the "can I speak please?" surprised me. 
    As for your fees it's totally your call -- but I can't for the life of me see why a new client out of the blue should get a discount.
    She was going on and on, oblivious to the fact someone else is on the other end of the line! 

    As mentioned earlier, I think I've misphrased the post, they simply want to pay the same fee as the existing client.
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  • RolandRoland Frets: 8590
    If your new customer is going to cost you less, for example by having joint lessons with an existing pupil, then there is an argument for a reduced fee. This would presumably be shared between the two of them.

    The more common way of doing this is a finders fee to the original customer. You could argue that this is already being implemented through holding the old price. 

    Either way I’d take the view “nice try love, but that’s not how the tutoring business works”. This would be closely followed by “don’t piss me off. There’s a limit to how much aggravation I’m prepared to absorb”.
    Tree recycler, and guitarist with  https://www.undercoversband.com/.
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  • Is the trial lesson free? That's all you should expect to offer - or offer the trial at half price.

    Some people are programmed to always try and get one over, on everybody else.
    She will no doubt say she has been talking to another tutor when you say no, but stick to your guns.
    She's just bullying you.
     
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  • martmart Frets: 5205
    Lestratcaster said:
    ...

    As mentioned earlier, I think I've misphrased the post, they simply want to pay the same fee as the existing client.
    Then you need to explain to the new client that their friend is paying a lower price as a reward for 4 years of loyalty. 

    But you also need to plan ahead - if this new client accepts and stays, will you keep their price constant for a short long as they stay with you? It rewards loyalty but it doesn’t seem an ideal business model, and creates the situation you’ve now found yourself in.
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  • Is the trial lesson free? That's all you should expect to offer - or offer the trial at half price.

    Some people are programmed to always try and get one over, on everybody else.
    She will no doubt say she has been talking to another tutor when you say no, but stick to your guns.
    She's just bullying you.
     
    Its not free but heavily reduced, AND I include it in the first monthly block of 4 as introductory offer. (5 lessons for the price of 4).

    If anything my restructured charging system now actually works out cheaper lesson by lesson than paying individually a few years ago.
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  • mart said:
    Lestratcaster said:
    ...

    As mentioned earlier, I think I've misphrased the post, they simply want to pay the same fee as the existing client.
    Then you need to explain to the new client that their friend is paying a lower price as a reward for 4 years of loyalty. 

    But you also need to plan ahead - if this new client accepts and stays, will you keep their price constant for a short long as they stay with you? It rewards loyalty but it doesn’t seem an ideal business model, and creates the situation you’ve now found yourself in.
    Yep. Will use that.

    Usually I don't raise rates for existing students, and the ones I have done it for has been a few quid every 2 years. A few have quit, a few stay.
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  • GrunfeldGrunfeld Frets: 4027
    She was going on and on, oblivious to the fact someone else is on the other end of the line! 

    As mentioned earlier, I think I've misphrased the post, they simply want to pay the same fee as the existing client.
    Fair enough.  I usually find a few useful nuggets in what people say.  (Happened yesterday, an offhand remark... turned out to be the key to the session.)  But we're in different businesses.

    It's easy with the price:  "These are my [current, 2017] fees." 
    You don't have to negotiate.  It's your fee. 
    We all have a bit of wiggle room but tbh I seldom offer anything different unless I'm doing my equivalent of pro bono
    She takes it or leaves it.

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  • If she sounds like a pain in the arse and is someone you could come to regret having as a customer I’d add a small surcharge be honest 
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  • hywelghywelg Frets: 4302
    Simple. State your current rates. Explain why your existing customer gets a beneficial rate (long term client, pays in blocks of 10 is reduced admin, less lesson planning).

    Offer an introductory lesson free and then explain they will get a beneficial rate 4 years down the line if they remain loyal and regular customers.  

    Some people think everything is up for negotiation, just explain politely "these are my rates".  

    Do you keep a record of who is paying what? You might need to or better still put everyone on the same rate but reward loyalty with free lessons. Might prevent  the current situation recurring. 
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  • hywelg said:
    Simple. State your current rates. Explain why your existing customer gets a beneficial rate (long term client, pays in blocks of 10 is reduced admin, less lesson planning).

    Offer an introductory lesson free and then explain they will get a beneficial rate 4 years down the line if they remain loyal and regular customers.  

    Some people think everything is up for negotiation, just explain politely "these are my rates".  

    Do you keep a record of who is paying what? You might need to or better still put everyone on the same rate but reward loyalty with free lessons. Might prevent  the current situation recurring. 
    I think I just need to more of a cunt about these things, and stand firm.

    And yes I do keep a record, it is easier though to whack everyone on the same rate at the same time.
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  • fandangofandango Frets: 2204
    edited December 2017
    hywelg said:
    Simple. State your current rates. Explain why your existing customer gets a beneficial rate (long term client, pays in blocks of 10 is reduced admin, less lesson planning).

    I would seriously avoid putting conditions upon a beneficial rate, as it reduces your ability to be flexible in future. Discounts and suchlike are at your discretion.

    Remember also, that referrals by others are worth their weight in gold, so continue to ensure you give the best possible music lesson to each and every one of your current pupils. By showing that your pupils are moving forwards in a significant and measurable way on their musical journey (passing exams, playing live, developing as an individual), then you've done what you can.

    Then the customer has two choices: (1) pay up and get great tutorship for their child, or (2) go elsewhere and risk getting a poorer tutor. That choice is theirs, not yours.

    Never be desperate to sell out your soul. You only cheapen yourself (and make a rod for your own back).

    Here endeth the lesson.
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  • SassafrasSassafras Frets: 30273
    I'd charge the bitch extra just for trying to bulldoze you.
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  • She sounds like the sort of person who would go into a wholesalers and try to buy 1 box for the same rate that you buy a pallet load for.
     Dont de-value your time and knowledge for someone whos a new customer and quite frankly sounds like more trouble than the moneys worth at full price, never mind at a discount.
    Nobody is guaranteed tomorrow.....


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  • fandango said:
    hywelg said:
    Simple. State your current rates. Explain why your existing customer gets a beneficial rate (long term client, pays in blocks of 10 is reduced admin, less lesson planning).

    I would seriously avoid putting conditions upon a beneficial rate, as it reduces your ability to be flexible in future. Discounts and suchlike are at your discretion.

    Remember also, that referrals by others are worth their weight in gold, so continue to ensure you give the best possible music lesson to each and every one of your current pupils. By showing that your pupils are moving forwards in a significant and measurable way on their musical journey (passing exams, playing live, developing as an individual), then you've done what you can.

    Then the customer has two choices: (1) pay up and get great tutorship for their child, or (2) go elsewhere and risk getting a poorer tutor. That choice is theirs, not yours.

    Never be desperate to sell out your soul. You only cheapen yourself (and make a rod for your own back).

    Here endeth the lesson.
    I just didn't see the benefit of them being a new customer getting some kind of special rate. I'm not desperate enough to lower my rates just so they take regular lessons. I just don't want a bad rep going around but then again why would I talked about in a bad way cos I didn't give them any discounts?

    I remember back in January I had a student doing 45 minute lessons each week. I told him a month in advance the fee would be going up by £3. He accepted and never said anything for 4 weeks. First lesson of the year comes and afterwards he tried to make out the increase wasn't in line with inflation and all that bullshit. I refused to budge and said either he pays the new fee or I reduce his lesson time more. He even had the cheek to say "if you're increasing by £3 at least give me an extra 15 minutes..."! What planet does this guy live on? I had to constantly tell him no politely and in the end literally kick him out the door as we had run past our allocated lesson time. The following week he texted me to say he's quitting, unsurprisingly.

    A month or two later I get his details come through via Bidvine asking for lessons. I was tempted to reply for a laugh just to wind him up.
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