Managing Price Increases as a Driving Instructor: A Balanced Approach
Raising prices for driving lessons is never easy, especially when you value your pupils and want to ensure they feel supported. As an instructor, it’s essential to find a balance between maintaining fair prices and covering rising costs. In this blog, I’ll share my own experience of managing price increases, and how I’ve communicated them to my students. These strategies might help you find an approach that works for you too.
Timing is everything
When considering a price increase, when you make the change can make a big difference in how well it’s received. Giving your students plenty of notice and being mindful of timing around holidays can help ease the transition. For example, I delayed my own price increase for 18 months to absorb the rising costs myself before notifying my students:
Here’s what I said to my pupils:
“I have delayed doing this for over 18 months now because I was able to absorb the rising prices internally. However, due to my ever-increasing costs, I have had to make the decision to increase my prices by £2 per lesson in line with market value and to cover costs of living, fuel, and maintenance increases.”
This approach gave me time to ensure the increase wasn’t too overwhelming for my students, and I let them know I’d done everything I could to keep lessons affordable. If you’re thinking about a price increase, consider giving enough notice, as well as choosing a time when your students might have more financial flexibility.
Offering flexible options
Flexibility can help soften the blow of price increases, which is why I also like to offer my students a choice. In one instance, I gave them the option of either reducing the lesson time for a smaller price increase or maintaining the current length with a slightly higher price.
Here’s how I worded it:
“Most companies are charging £84 for double automatic lessons at the same time as me (1 hour 40 mins), compared to the £70 that I charge. That said, this kind of price increase does not sit right with me, so I have some options below for you to see what would suit best, and I will go with the majority vote.”
This gave my pupils a say in how they wanted to proceed, and the feedback I received showed that they appreciated having a choice. Letting students vote on or provide feedback about the increase can help them feel like they’re part of the process rather than on the receiving end of a sudden change.
Show your value
Whenever you raise prices, it’s important to remind students why they’re getting great value for what they’re paying. As an instructor, I’ve always tried to offer more than just lessons—I provide theory support, online resources, and constantly invest in my own professional development.
What I told my pupils:
“I hope you agree that as a driving instructor, I offer far more value than some other schools, including theory apps, online diaries, resources, and support sessions. I continually invest in my own development to give you the best and most up-to-date techniques when learning to drive.”
This helped me communicate that the price increase wasn’t just to cover my costs—it was to ensure that my students continued to receive the highest quality lessons and support.
Inflation and market trends: don’t be left behind
One thing I’ve found essential is keeping track of the wider market. Prices in the industry are always changing, and keeping an eye on inflation, fuel costs, and what other schools are charging helps me make informed decisions. Regular price reviews, every six months or so, ensure that I don’t wait too long between increases, which can make the jump feel bigger than necessary.
I made sure to explain this to my students as well:
“The industry prices have gone up again several months ago, and as usual, I didn’t want to change anything before Christmas or New Year as I know how times are tough. If any block bookings were paid, that’s all honoured. Most companies are charging £84 for double automatic lessons, but I’ve kept my prices lower for as long as possible.”
By staying informed about the industry standard, you can raise prices confidently, knowing you’re still competitive while covering your costs.
Communicating the change
Once you’ve decided to increase prices, the way you communicate the change can make all the difference. When I raised my prices, I made sure to personalize my message, showing gratitude for my students’ loyalty and effort:
“Thank you for your understanding, thank you for choosing me as your instructor, and thank you very much for the effort you put in during our lessons. I really am very lucky to be a part of your journey.”
Taking the time to express appreciation can go a long way in maintaining strong relationships with your students, even when prices go up.
The Pros and Cons of Increasing for All Pupils or Just New Enquiries
One key decision you’ll need to make when raising prices is whether to apply the increase to all of your students or only to new enquiries. Both approaches have their benefits and drawbacks.
Increasing for all pupils:
• Pros: This creates consistency across your client base and ensures you’re being fair to yourself by covering your rising costs.
• Cons: It might feel harder to raise prices for long-standing students who’ve been loyal to you for a long time.
Only increasing for new enquiries:
• Pros: It allows you to reward the loyalty of your existing students while still adjusting prices to reflect your current costs.
• Cons: You may risk running at a loss or limiting the growth of your income if your regulars remain on old rates for an extended period.
Personally, I’ve often opted to increase prices for all pupils to ensure consistency and to fairly reflect my growing costs. However, I’ve also found ways to soften the impact, such as offering block booking discounts or honouring current rates for a limited time for students who book in advance.
Taking the Emotion Out of the Decision
While it’s important to be mindful of your students’ situations, pricing decisions shouldn’t be purely emotional. Your business needs to remain sustainable, and that means periodically reviewing and adjusting your prices. That said, I’ve made emotional decisions in the past, like delaying price increases or offering flexible payment options, because that suits me and my business.
However, I’ve learned that it’s crucial to approach pricing with both heart and head. Regular reviews and making data-driven decisions based on market trends, inflation, and your own running costs help ensure your business stays healthy. Taking the emotion out of these decisions doesn’t mean being unkind—it means ensuring that you can continue to provide the high-quality service your students rely on.
Final Thought
Price increases don’t have to be stressful if you approach them with transparency, flexibility, and thoughtfulness. By offering value, communicating clearly, and regularly reviewing your prices, you can manage increases in a way that works for both you and your students.
Your students value you for more than just the cost of a lesson—they value the time, effort, and care you put into helping them achieve their driving goals. By regularly reviewing your pricing, keeping emotions at bay, and being transparent with your students, you can manage price increases in a way that feels fair to everyone.
Written by Phillip and Diana
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