CFIs - How do you go about raising your rates?

RussR

RussR

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This question is for fellow CFIs, although I'm sure feedback from freelance commercial pilots would be good too.

I am a freelance CFI. I have my rate set at what I think is reasonable and worth my time. This post is not about HOW to set my rates.

However, I'd like to hear some wisdom and experience on how you go about increasing your rates from time to time. I assume at some point I will want to. So far for me, although my rates have gone up, it has always been accompanied by a definite "break" in my business - moving to a new state, switching from a school to freelance, etc., so it has been easy.

I know there are no hard and fast rules, but other's experiences would be helpful.

Do you:
- Just raise them effective on a certain day, letting your current clients know ahead of time?
- "Grandfather" current clients, maybe until they pass their checkride (if they're in training), but raise it for new clients?
- What about "occasional" clients, like those who come back for recurring training?
- Any difference with referrals from previous clients?
- Do you end up charging different people different rates?

That kind of thing. Thanks!
 
Grandfather current students. Raise it for those new and occasional. Just be up front when scheduling the occasional people and let them know before the lesson.
 
If you want to raise rates to current students I would recommend giving at least 30 day notice if not 69 or 90. That way they are semi grandfathered but also have options if they want to find a lower rate. Unfortunately, most people don't understand value and purchase based on cost. I'd gladly pay more if there was true value there
 
I think people generally understand that hourly rates are not static. I would give advance notice of a change in rates but would not otherwise grandfather anyone. Hopefully, my current students would feel they have are receiving the value Mulligan mentions.

I think it is far more of a problem to have different rates for different people (as opposed to for different services) than to raise your rates occasionally.

That does not mean, however, that I would not consider an exception.
 
When I have bumped my rate I grandfather the existing students and the new rate will apply to the new students/FR's/Checkouts.
 
What the others said, grandfather the current guys.

I used to charge $50hr cash/trade/barter only. I found this the most patriotic as well as profitable way to charge, helped with my QOL and all my students had zero issue with it.
 
Increase would apply to everyone, current and future. Baby needs new shoes ya know. :yesnod: :goofy:
 
NJP_MAN said:
Grandfather current students. Raise it for those new and occasional. Just be up front when scheduling the occasional people and let them know before the lesson.
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:yeahthat:

I've never raised them in the middle of student's training, but most of my students finish within a year's time at the most....most six months or less.

For recurrent training with regular clients, I just quote the current rate when asked about flight reviews, IPCs, etc. No one ever has raised an issue, but I don't make dramatic changes, either.
 
NJP_MAN said:
Grandfather current students. Raise it for those new and occasional. Just be up front when scheduling the occasional people and let them know before the lesson.
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Agree 100%.
I personally think it would be a %#@* move to raise your rate mid way through training on a current student. Airplane rate is understandable due to many factors raising the cost, but your time is a different story.
 
I let my current students stay at the current rate until we finish whatever we started.

I feel they picked me to help them through a rating, and that I quoted them a rate at the beginning of that process.. So I stick with that rate until we are done.
 
James331 said:
What the others said, grandfather the current guys.

I used to charge $50hr cash/trade/barter only. I found this the most patriotic as well as profitable way to charge, helped with my QOL and all my students had zero issue with it.
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Ever get any cool and unusual trade or barter offers?
 
mkosmo said:
Ever get any cool and unusual trade or barter offers?
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Nothing too crazy, had a body guy offer to do a few things on one of my cars, couple A&Ps, one guy who wanted to trade a inspire drone. I typically found out people's professions during the initial disco flight meet and greet, recently I had a guy take a look at some trees around my place, he asked what I do and now he's going to be trading some trimming and bridging for some flight hours.

Trade and barter can end up raising your rate, especially when you consider the predatory tax scheme we enjoy nowadays.
 
From a non CFI perspective, I would expect a reasonable notice period. If I'm in the middle of a rating, I would have heartache with a midstride increase. Now, if I was dragging out my training like only flying once a week, again, reasonable notice to expect the increase may hurry up my schedule.
 
Also not a CFI, but an independent contractor.

My T&M rate is per engagement. In Flight Training that equates to per certificate/endorsement/etc.

I have never raised rate on an engagement, but have closed one out and walk in the next Monday morning at the new rate.

So as the question reads I guess I'm a "grandfather" type.

Also, if someone comes back and needs like a week (or in CFI world an endorsement) I typically honor the old rate. Something more significant (like IFR or commercial) I'd go with my now current rate.

Case buy case fairness and building rapport. That grows business.
 
Yup, I would grandfather the regulars. Anyone who is just occasional, just make sure they know up front. I dont instruct too often, but when I do I pick my students bc they are, nice, smart, motivated, and have the means to get it done. I think I set reasonable prices, while maybe higher than some, but I am not a ft cfi... So if I price myself out of this or that student, no biggy.

I enjoy instructing, but only with those who have the aforementioned traits.
 
James331 said:
Nothing too crazy, had a body guy offer to do a few things on one of my cars, couple A&Ps, one guy who wanted to trade a inspire drone. I typically found out people's professions during the initial disco flight meet and greet, recently I had a guy take a look at some trees around my place, he asked what I do and now he's going to be trading some trimming and bridging for some flight hours.

Trade and barter can end up raising your rate, especially when you consider the predatory tax scheme we enjoy nowadays.
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So CFIs don't get offered happy endings? Top gun told me girls just drop like flies for pilots!
 
When I was freelancing, I would typically grandfather current clients at the old rate and charge any new clients the new rate. Pretty simple and worked well for all 3 of my rate hikes in 3 or so years of freelance instructing.
 
I'm one of those that let existing students stay with the old rates. Interesting thing, though - when I raised my rates, I started getting more new students.
 
write-stuff said:
I'm one of those that let existing students stay with the old rates. Interesting thing, though - when I raised my rates, I started getting more new students.
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I find that some people are attracted to slightly higher rates than average (quality) but then there are some people who call and the first sentence is "Well I'm a [profession/situation] can I get a discount?"

We decided to do zero discounts aside from a block rate. It keeps it fair and then I'm not trying to remember who got what discount.
 
write-stuff said:
I'm one of those that let existing students stay with the old rates. Interesting thing, though - when I raised my rates, I started getting more new students.
Click to expand...
Maybe they assumed higher prices implied better quality?
 
mkosmo said:
Maybe they assumed higher prices implied better quality?
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I've tended to go with higher priced instructors for work of late and I've generally not been disappointed. Generally the guys that put a value on their time are a bit smarter, more savvy, and also have a reputation to maintain so they can maintain that income.
 
We grandfather current students and charge new students the increased rate.
Grandfathered students are aware that any new training beyond the one we're working on will be at the higher rate.
If we're working with another instructor doing normal things currency etc. we don't charge.
If we're working with another instructor on advanced ratings it's understood that training is at a 50% discount.

This has worked very well for us.
 
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