Let’s look at offers;
Example one
10 lessons for £99.00 normal rate £23.00 per hour
Pupil needs 34 hours, 10 @£99.00 + 24 @ £23.00 income = £651.00 adjustment for offer means lesson rate is £19.15 per hour
Example two
10 lessons for £99.00 normal rate £20.00 per hour
Pupil needs 34 hours, 10 @£99.00 + 24 @ £20.00 income = £579.00 adjustment for offer means lesson rate is £17.03 per hour
Example three (1st 4 Driving associates recommended offer)
2 lessons for £20.00 normal rate £20.00 per hour
Pupil needs 34 hours, 2 @£20.00 + 32 @ £23.00 income = £756.00 adjustment for offer means lesson rate is £22.24 per hour
What you can clearly see is that it is possible to make money and do low price offers but only if you are doing 34 paid hours a week and prepared to settle for the national minimum wage. If you are looking to exceed this minimum wage then increasing your hours per week will not work as this increases overheads and unit costs per hour. To increase income you need to increase your hourly rate or look to obtain residual income, generated for example, by taking on instructors and growing your school. 1st 4 Driving look to support you in obtaining higher price lessons and although offers can be good occasionally, should not form the main essence of your business model. From my figures you can see there is margin to offer discounts but I would always suggest they are short term or have another purpose such as building a Facebook following to drive likes and pupils so as to retain cheaper marketing costs.
My figures are not exhaustive and many assumptions are made but I am sure you get the idea. You can see from offer three examples that you would actually be getting £15.11 profit from your lesson price for your wages, which equates to £513.74 a week and £24,660 a year, all before tax of course.
