# How to Price Course Tuition

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What is Pricing? Pricing or forming the price of your monthly payment is the process of setting the monthly fee charged to the customer. This is the type of activity essential for companies that involve courses, schools, training, classes and other activities of this kind.

Features: Different from the services, projects ou produtos, the price formation of a tuition takes into account the frequency of the students and the proportional collaboration of each course with the fixed costs. Therefore, it should be treated in a special way.

How to: Monthly pricing also has a method to do that will be explained in detail in the following steps:

a) Define the Total Capacity of the Establishment and the Assessment of the Course in question

The first step to getting started is to calculate the selling price of the monthly payments of your business is to raise your total capacity. For this, it is necessary to know: (a) total capacity of students, (b) average occupation rate, (c) school days per month and (d) average hours per student. Thus, you will reach the total workload number of your company per month. The image below illustrates this calculation:

After calculating the total capacity, one should do the same, but for the course being priced. Thus, it will be possible to understand the proportion of costs that should be prorated.

b) To raise the Fixed Costs of the Company and the Course in question

The next step should be the survey of fixed costs of the company that involve salaries of fixed employees, rent, telephone, internet among others. Of course, this cost must be apportioned proportionally to the course in question. This can be listed according to the image below:

In addition, it is important to check if the course being priced has some extra cost that should be included in the calculation as additional remuneration, expenditure on material, rent of room among others. This way, you will be able to know the total cost of your course by apportioning the fixed cost and adding it to the specific cost of it.

c) Define Margin and Final Price

Knowing your total and partial capacity, listing the fixed and variable costs, the last mathematical step to calculate the price of your monthly payment is to add the expected margin. Thus, a good spreadsheet will give you the final value automatically as image below:

In this step, it is also worth adding the commission and tax costs to get the final profit indicators per student and the profitability rate.

d) Competition

Finally, a comparison with the competition should be made to ensure that the stipulated value is within the market standards or at least consistent with the positioning of the business.

This post clarified how to make the pricing of your school or course tuition? Here at LUZ, we offer management tools for companies, including a Excel worksheet ready for pricing!

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Leandro started his professional life consulting hundreds of small companies throughout Brazil and was a professor at institutions such as SEBRAE, Vale, Souza Cruz, FIRJAN, COPPE and FGV. Today, it is enchanted by the facilities that Excel brings to business management and wants to bring this wonder to Brazil and the World!