Re: "The market here is still too cheap, unorganized, shoddy and through the black market; the clients are tired and beginning to complain, but they do not yet accept that they have to pay for something better."
I'd say that's an accurate analysis and we have pretty much exactly the same situation here. I doubt if the language teaching business in Madrid is very different to Bcn.
People don't think twice about paying 35 euros an hour for someone to change the oil in their car, and considerably more for services such as dentists, lawyers, architects, even hairdressers. Ok, it's not the same as those services have their overheads and other costs (but so do we, up to a point.) I think problem is the "perceived value".
One other point about prices - if we quote 25, 30, 35 etc. i.e. "round numbers" there are two problems: Firstly, they look arbitrary, like there's no system to our pricing, and that doesn't help "perceived value". Secondly the clients think maybe they can negotiate you down from 30 to 25. If on the other hand we quote 36 or even 37.40 an hour it looks like there's a "system". They might negotiate from 37.40 to 37, 36, or 35.. Though a very effective question when anyone tries to negotiate the price down is: "Why?"
But the point is, there's no shortage of work, just a shortage of teachers. That's means it's not a buyers' market, and that means we set the prices, not the client. It's important that we all start quoting higher prices, otherwise the "perceived value" will never increase.
What you say about the cost of living and the general economy is also very true. I think the economy is in a bad way, and we will see the effects over the next few years. House prices will crash - it's already starting, and the same chain reaction that allowed them to rise so high works equally well in reverse.
By the way, I assume your American, judging by the "z" in "organized", am I correct?
Totally agree!
Re: "The market here is still too cheap, unorganized, shoddy and through the black market; the clients are tired and beginning to complain, but they do not yet accept that they have to pay for something better."
I'd say that's an accurate analysis and we have pretty much exactly the same situation here. I doubt if the language teaching business in Madrid is very different to Bcn.
People don't think twice about paying 35 euros an hour for someone to change the oil in their car, and considerably more for services such as dentists, lawyers, architects, even hairdressers. Ok, it's not the same as those services have their overheads and other costs (but so do we, up to a point.) I think problem is the "perceived value".
One other point about prices - if we quote 25, 30, 35 etc. i.e. "round numbers" there are two problems: Firstly, they look arbitrary, like there's no system to our pricing, and that doesn't help "perceived value". Secondly the clients think maybe they can negotiate you down from 30 to 25. If on the other hand we quote 36 or even 37.40 an hour it looks like there's a "system". They might negotiate from 37.40 to 37, 36, or 35.. Though a very effective question when anyone tries to negotiate the price down is: "Why?"
But the point is, there's no shortage of work, just a shortage of teachers. That's means it's not a buyers' market, and that means we set the prices, not the client. It's important that we all start quoting higher prices, otherwise the "perceived value" will never increase.
What you say about the cost of living and the general economy is also very true. I think the economy is in a bad way, and we will see the effects over the next few years. House prices will crash - it's already starting, and the same chain reaction that allowed them to rise so high works equally well in reverse.
By the way, I assume your American, judging by the "z" in "organized", am I correct?