How to Raise Rates as a Piano Teacher

For many piano teachers, planning to raise rates can be stressful and uncomfortable.  But it doesn’t need to be.

Let’s go over why you should raise rates and exactly how to do so without pushback or discomfort.

Why You Should Raise Rates as a Piano Teacher  

If you are running a piano teaching business, you need to be strategic about every decision.  After all, there is no CEO above you running the show.  You are the CEO!  

If you’re choosing your piano lesson rates based on someone else’s business or picking a random number, you are thinking like a side hustler not a boss.  

So here is a summary of why I will raise rates in my business this year.  Hopefully you will feel inspired to do the same for your business.

I Will Raise Rates Because I Have Goals

I have goals for my business.  I have personal financial goals.  The reason I started my own piano teaching business in the first place was to make good money doing what I love.  And I’m sure you can relate.

If you are very wealthy and have no need for any additional monetary stream of income, you can go ahead and skip this part entirely.  But because you’re here, I’m guessing that’s not the case.

And, guess what?  It’s okay to want money.  It’s okay to start a business to make money.  It’s okay to have purely financial goals.

Wanting to help people and share your gifts is really important, but I have yet to meet a piano teacher who was 100% greedy for money and needed inspiration to care about their students.  That’s usually not the problem!  It’s usually the other way around.

So you have financial goals for your business.  And to raise rates is to take a step towards those goals.

I Will Raise Rates Despite the Economy

In 2018, the stock market fell.  In 2020, COVID-19 profoundly changed every aspect of our lives including the economy.  And now, we are in a recession.

You might be thinking, “How can I raise rates at a time like this?  People don’t have the expendable income they used to.  Won’t I be putting a burden on these families?”

This is a legitimate concern and you are a good human for thinking this.  However, as a business owner, you also need to pay your bills.  You also have increased costs to run your business.  You also are spending more on everything.

The difference between you and someone who works a nine to five job for a living is that you have control over how much you get paid!  And that freedom is certainly one of the reasons you started your business.

It is okay to raise rates during a recession.  There are still plenty of families out there willing to pay a premium rate for premium piano lessons.

Remember, you don’t need to be EVERYBODY’S piano teacher.  And you wouldn’t want to be.

Those looking for budget piano teacher will certainly find one.  And those looking for a teacher like me, will find a way to pay my rate.  

So by raising my rates, I’ll end up with a small studio of very dedicated music students who want to learn from me.  And to me that sounds way more appealing than being everyone’s neighborhood reasonably-priced piano teacher.

I Will Raise Rates Regardless of Competitor Prices

For the same reason, I plan to raise rates despite other piano lessons rates in my area.

If you ever look up online piano lessons on a platform like TakeLessons or Outschool, you will see such a range of prices.  Some teachers charge less than ten dollars for a group lesson while others are charging one hundred dollars per private lesson.

Or think about retail options in your city.  If you wanted to buy a new set of towels, depending on your budget, needs, and the application, you would venture to a different store, right?  If you just needed one rag to clean up in the garage, you might try a discount superstore or even a dollar store.  If you were supplying towels for a luxury master bathroom in your high ticket bed and breakfast, you would seek out a linens specialist store or a high-priced department store and look for luxury materials, colors and thread count.

Both are needed in a society.  Neither one is right or wrong.  Just differently priced for different customers and needs.

So you get to decide if you are the dime-a-dozen budget-friendly piano teacher or the “luxury brand” not everyone will want, need, or can afford.  And everything in between.

I Will Raise Rates Because…What’s the Worst That Could Happen?

When I first started my piano teaching business ten years ago, I didn’t raise my lesson rates at all for five years.

I was scared that if I did I might get angry emails, or have students quit, or get sob stories from parents who couldn’t afford lessons at the new rate.

The whole situation felt like more trouble than it was worth.  So for years I was content to just keep charging the same lesson rate.

But eventually I knew I needed an increase.  My rates had become below average for my area and my studio was at capacity.  I knew I was worth more than I was charging.

So I decided to raise rates quite a bit all at once.  And you know what?  Nobody got angry.  No sob stories.  I did have a couple of students quit but perhaps not directly related to a rate increase.

Life went on and the majority of my families were more than happy to pay my new rate.

So ask yourself, “What is the worst that could happen?”

When is it Time to Raise Rates as a Piano Teacher 

My recommendation to you is: don’t wait until a rate raise is way overdue.  Raise your rates before you “need to,” and raise a little bit at a time.

Plan to Raise Rates Once a Year Til You Reach Your Goals

College tuition is pretty outrageous these days.  But even with such high tuition prices, no one would expect the price this year to be exactly the same as last year.  

Parents and students expect a little increase each year they sign up for classes.

That is the approach I take with my piano lesson studio.  I increase my rates a little bit each year.  

This way parents aren’t surprised with a little increase (if they even notice), and nobody is forced to make a tough decision all at once about continuing piano lessons.

Raise Your Rates Before Summer

As far as timing goes, I like to raise rates just before the summer semester starts.

I split the calendar year into three trimesters:

• Spring Trimester (January – May)
• Summer Trimester (June – August)
• Fall Trimester (September – December)

Many of my families pay in full for the trimester upfront.  This means that the summer trimester is much less expensive because it only includes three months.

So if I raise rates just before the summer trimester, families aren’t hit with a big increase if they pay in full.

How Much Should You Raise Your Rates?

Drastic Piano Lesson Rate Increase

If you are in the same boat I was years ago and you know you are way undercharging for lessons currently, you may want to consider a drastic rate increase.

This is not impossible and chances are you will retain most of your students and life will go on.

If this is what you need to do, then send out a clear email stating the new lesson rates and make sure your families know in advance.

Gradual Piano Lesson Rate Increase

If it’s possible to stretch out your income goals over the course of a few years, then you might want to take the approach I’m taking.

Increase lesson rates a small amount each year until you reach your income goals.

How to Raise Rates as a Piano Teacher  

Send Out a Lesson Rate Chart

I make a Lesson Price Sheet and send it out every new trimester (so three times a year).  Parents expect to receive it as an email attachment at the start of each trimester.  So I send it whether I’m raising rates or not.

When I do raise rates, I don’t need to make a huge deal out of it because I’ve trained my customers to open up that price sheet every trimester, look it over, and then commit to lessons for another trimester.

If you’re interested in a Free Template for a Lesson Price Sheet along with Lesson Studio Policies, I created this Canva template you can open up and customize with your rates.

Offer Discounts

If you are raising your lesson prices quite a bit, it might help soften the blow to offer some discounts.  

You can offer a discount to customers who pay in full for a trimester.

Or you could offer a discount for auto-pay, or perhaps for customers who choose a no-fee payment option (which saves you money in credit card fees).

Offer More Lesson Options

Another way to help out budget minded customers is to offer more lesson options.

So say you raise rates quite a bit and a few families worry about being able to continue lessons at the new rate.

You could offer a shorter private lesson slot (45 minutes to 30 minutes, or 30 minutes to 20 minutes).

Or you could offer partner lessons or group lessons as an alternative.  This is a great option because you can charge each student less, but you’re making more an hour.

Is it Time to Rethink Your Piano Lesson Rates?

If you are still not sure how much to raise your lesson rates, check out this article where I break down: if I were starting from scratch, this is how I would determine my lesson rates.

Blog post: How Much Should I Charge For Piano Lessons?

There is also a free worksheet to calculate a lesson rate based on your financial goals.