Getting down to the nitty-gritty

In other words –  what price to charge for classes and what’s a fair split for the instructor and shop owner on the teaching fees?  Given that money is such a taboo subject with many folks, I had to really dig to find the information I needed to set my class fees and determine if teaching sewing was even worth it for me to pursue. I believe in sharing, so I hope you find the following information helpful.

Unfortunately, there is no industry standard.  There are no hard and fast rules.  There is no “magical” percentage for the teacher/shop owner split.  Everything’s negotiable and dictated by your local market.

Depending on your area, pricing information may or may not be available online. You may actually have to call the shop or teacher to inquire.  Fortunately, I was able to find enough pricing info online for my area. As expected, my competitive research indicated higher class fees were the norm in the city (or “intown” as we call it here).  Class fees were also higher in the more affluent areas. Class fees in my suburban area average $30/session for kids or adults.  Sessions last anywhere from 75 minutes to 2+ hours. Students bring their own machines and furnish their own supplies at this price.  (Machine rentals are available at the quilt shop.)  Home-based sewing schools and after school programs charge students about $15/hour in my area.  Two of the intown locations provide everything – but at a substantially higher fee.

It’s enough to make your head spin.  

As an instructor, you can opt to be paid in 1 of 3 ways:

1) By the hour like a shop employee;

2) Flat fee per class, regardless of enrollment; and

3) Percentage of class fees collected.

For independent contractors, I think option #3 is potentially the most lucrative.  You set the minimum and maximum students per class.  Although the market drives the class fee, generally more students = more $$ for you and the shop owner.  (If you are a shop employee who teaches classes as part of your job, you will more than likely be paid only your normal hourly rate.)

Never forget that you are both in this to make money…no matter how much you might love sewing and crafting.

Percentages…percentages…what’s typical?  Note that the instructor usually receives the larger percentage of the class fees.

A 60%/40% split has been reported by teachers affiliated with one of the large chain fabric stores.

A 75%/25% split was recommended by one of the “business” sewing books I consulted.

My sewing mentor told me that I would benefit most from a 90%/10% split, and that any split over 75%/25% might price the sewing classes too high to meet my desired income target.  She also confirmed working under a 60%/40% split when she taught at a sewing machine dealer several years ago.

My mother, who owns a successful sales company in a totally unrelated industry, informed me that a 70%/30% split was the new standard in many industries, given today’s economy.

Personally, I think the sweet spot is somewhere between 70%-75% for the instructor and 25%-30% for the shop owner.  (A little more online sleuthing revealed that independent music instructors who teach in a music store generally split fees on 75%/25% arrangement).  After all, the shop owner is providing the space, furniture, equipment, utilities, customer service and handling registration.  If you want to keep 100% of the fees, then you need to look at providing your own space.   You may also need to work out an arrangement on who provides supplies and kits for the class.  Shop owners often like to kit up supplies for series of classes as a convenience to their customers.  Others expect the instructor to handle the kits.  Make sure you cover your costs.  In my case, we agreed that I would charge a nominal supply fee paid directly to me to cover the craft supplies needed for the kid sewing projects.  Any other kits would be made up at her discretion.

My minimum goal is to match what I make as a teacher on an hourly basis and be in line with local private tutors.  $40-$50/hour is about right for my area.  This may seem like a lot, but remember teachers can expect to spend 1-2 hours preparing for every hour of actual class time.  You have to factor this *unpaid* time into setting your class fees and minimum number of students you will accept to even hold the class.   And don’t forget about self-employment taxes…

Remember, your goal is to create a win-win for both you and the shop owner.  Don’t be afraid to ask for what you want and deserve financially.  It’s all negotiable.  Good luck!

NAICS code for those offering private music, sewing, art, dance & drama instruction

611610

My site stats revealed several searches for NAICS code.  Thought I would share it with you.

Source: http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=611610&search=2007%20NAICS%20Search

Also thought I would share that for those living in unincorporated Cobb County and pondering how much it costs to obtain a business license since the county doesn’t post that info online – the initial business license will set you back $102.00 if you anticipate no revenue and $108.00  if your anticipated revenues are less than $100,000 annually.  The base amount comes straight from the clerk at the county office.  The latter figure comes from my next door neighbor who just obtained her business license as a licensed massage therapist and works out of a local chiropractic clinic.

 

This ‘n that

Looks like winter has finally decided to show up in the ATL.  After an exceptionally mild  January, we’re expecting temperatures in the mid-teens tonight along with gusty winds.  Now to find my gloves, hat and scarf…and the bin of old sheets to cover the camellias that are in full bloom.

I’m actually glad to make it to the weekend.  I spent 5-1/2 hours in the dentist’s chair this week and exhausted my dental benefits for the year in the process.  A mishap with a watermelon Jolly Rancher resulted in broken front teeth that hastened my visit to the new dentist I’d picked out.   I have to say that they conducted one of the most thorough new patient exams I’ve ever encountered.  Yes, my front teeth were fixed and look great, but a larger (read more expensive) problem was found.  A filling I’d had redone by my previous dentist 2 years ago had failed and x-rays revealed decay under the filling.  Can you say crown?  Ouch to both my mouth and wallet.

A sore jaw and head cold (thanks to the kiddos at school for sharing their germs) meant I stayed on the couch with my laptop most evenings.  I did manage to sort through some of my pictures.  I discovered this one that I took late last summer with my vintage toy sewing machine and some vintage notions:

I didn’t really feel like doing much stitching this week.  I attempted to make a drawstring bag for a friend’s charity project, but it wasn’t my best work.  It’s in the round file.

My business cards arrived and word has started to spread that I will be teaching sewing lessons soon.  A parent volunteer asked me if I would teach her teenage daughter how to sew.  It’s a good thing that I am affiliated with a shop and am able to direct her there.  There’s not a thing wrong with tutoring or offering private instruction for pay as long as you aren’t teaching the students directly assigned to you.  You simply need to do it in a public place – school, library, fabric shop or at the student’s home.  There is a definite difference in my mind when it comes to teaching students from my school and the general public versus teaching friends, neighbors and coworkers.  I’m perfectly comfortable teaching people I already know from my home, if they choose to go this route.  Guess I need to put “scout alternate locations for private lessons” on the to-do list.