# Signs a price is too low > A full calendar, a waitlist and no objections: reading the signals in Dana's evenings. - Course: [Pricing: Set, Package and Raise Your Prices](https://productovi.com/courses/pricing.md) - Module: How do we change a price? - Lesson 25/32, ~24 min - Source: https://productovi.com/courses/pricing/signs-a-price-is-too-low ## A full calendar **Alex Tutor:** In the earlier modules we built Klasna's prices from the ground up: the floor, the alternatives, what buyers will pay, packages, honest pages and discounts. This module is about changing a price that already exists: when, for whom and how. **Alex Tutor:** We start with a different business: Dana's own practice. It's mid-March 2027, and she still charges the 600 UAH per lesson she set last September. **Dana:** My evenings are booked until the end of May. Four adults are waiting for a slot, and in seven months nobody has said 600 is too much. That's good news, right? **Alex Tutor:** Good news about demand. It may also be news about your price. When demand is steady and nobody pushes back, the price is often below what many of your learners would pay. Let's check it with numbers rather than a feeling. **Dana:** I have 12 slots a week: two on each of four weekday evenings and four on Saturday. That's 48 a month. February had 40 lessons, March and April are full, May has 46 booked. **Alex Tutor:** Utilization is booked lessons divided by the slots you offer. February alone says little; three months in a row near 100% is a pattern. > **Exercise:** Dana offers 48 slots a month. She has 48 lessons booked in March, 48 in April and 46 in May. What is her **utilization** for March–May together? In %, to two decimals. ## Who says yes, and who says no **Sofia:** A full calendar could also mean you simply offer too few hours. What else points at the price? **Alex Tutor:** Good question. Look at what happens when someone asks about lessons. Dana, how many adults wrote to you from September to February? **Dana:** Fourteen. Eleven started. Two couldn't fit my evenings, and one wanted a group. Not one of them mentioned money. **Alex Tutor:** That's the second signal: almost everyone who asks says yes, and no one who says no says it about the price. A price that sits near what buyers will pay meets some resistance. Zero resistance over seven months is information. **Alex Tutor:** One caveat: these people found Dana through friends and her own channel, so they already trust her. That's real, but it means the yes rate says more about this audience than about strangers. > **Exercise:** From September to February, 14 adults asked Dana about lessons and 11 became her learners. What share of enquiries became learners? In %, to two decimals. **Alex Tutor:** One more question about those 14 enquiries: where did the people come from? > **Exercise:** Most of Dana's 14 enquiries came through friends and her own channel, and 11 started (78.57%). What is the best way to read that yes rate? ## Signals that mislead **Dana:** Then why do I worry about July? Last October I forecast only 23 lessons for July and August together. **Alex Tutor:** Because a quiet summer feels like a verdict on the price. It isn't: adults travel, and exams are over. A season moves demand up and down whatever you charge. Judge the price on comparable months, not on the dip. **Alex Tutor:** There's one more signal you already know from the first module: your effective hourly rate. With preparation, messages and no-shows, 600 a lesson came to about 289 UAH per hour worked, against 470 for an hour of Klasna lessons. **Alex Tutor:** Put her hour next to her alternative. How far below is it? > **Exercise:** With preparation, messages and no-shows, Dana's 600 UAH lesson pays her about **289 UAH per hour worked**. An hour of Klasna lessons pays her **470 UAH** after tax. By what percentage is her private hour below her Klasna hour? To two decimals. **Sofia:** So the market says the price is easy to accept, and Dana's own numbers say it doesn't pay for her time. Both point the same way. > **Exercise:** Which of these are signs that **Dana's price** may be too low? Select all that apply. **Alex Tutor:** Klasna has the same kinds of signals, Nazar. Which would you watch? **Nazar:** Waitlists for popular tutors in spring, how often support hears "too expensive", how many families choose the biggest package, and what similar schools charge for the same lesson. > **Exercise:** **True or false:** because Dana expects only 23 lessons in July and August, her price must be too high for the summer, and she should cut it. > **Exercise:** Match each signal with what it most likely tells you. **Alex Tutor:** Say the signals all agree. What should Dana actually do next? > **Exercise:** Dana's signals agree that 600 is probably low. What is the soundest next step? ## Your turn: a verdict for Dana **Dana:** So is 600 too low or not? I need one clear answer before I change anything. **Alex Tutor:** Give her a short verdict: which signals say the price is low, which signal to ignore, and what she should check next before she commits to a new rate. > **Exercise:** Dana asks: "Is 600 too low or not?" Write her a short verdict (3–5 sentences): the signals that say the price is low, with numbers, the signal to ignore, and what to check before she commits to a new rate. The facts: 142 of 144 slots booked for March–May (98.61%); four adults on a waitlist; 11 of 14 enquiries became learners and none of the three who didn't start mentioned price; about 289 UAH per hour worked against 470 at Klasna; only 23 lessons forecast for July and August. > **Key ideas** > > - **Utilization:** booked lessons ÷ slots offered. Dana's March–May: 142 of 144, 98.61%. > - **Yes rate and objections:** 11 of 14 enquiries became learners (78.57%), and none of the three who didn't start mentioned price. > - **A waitlist** means demand is above capacity at today's price. > - **A thin summer is a season**, not a price signal: compare comparable months. > - **Your own hour:** 600 a lesson pays about 289 UAH per hour worked against 470 at Klasna. > - No single signal proves a price is too low; several pointing the same way are worth acting on, starting with a careful check. **Alex Tutor:** Next time Dana decides how much to raise, for whom, and how to tell the people who already learn with her. - Previous lesson: [Case: write Klasna's discount policy](https://productovi.com/courses/pricing/discount-policy-case.md) - Next lesson: [Raising a price: whom, when, how much](https://productovi.com/courses/pricing/raising-a-price.md) --- Productovi Learning. Free, no sign-up needed to read.