Why we're going back to NYC to build Tutorspree
aaronkharris.com
aaronkharris.com
Funny, I look at those factors and think, "Boston".
Also, I can't imagine the living cost in NYC is really that much than SF/Silicon Valley. I mean, I pay $950/mo for a nice room in a decent house in SF, and even in Menlo Park I payed $750.
http://money.cnn.com/2009/02/19/real_estate/housing_affordab...
With stats like the ones in the article posted, you're incorporating a really geographically diverse area for NYC. Do the SF ones include Oakland? Here they're talking about way out in East New York, or East Flatbush BK, or the South Bronx. So sure, CNN says you can buy a house for $455k, but in any neighborhood you'd feel safe living in it's more like $600k for a smallish 1 or 2 bedroom co-op, and that's in the neighborhoods going through gentrification.
Rent is generally around $1500/month for a 1 bedroom in bed-stuy or up in east greenpoint. You can easily pay double for Manhattan.
Then there is the cost of everything else in the city. It really gets expensive quick!
Cheapest homes in East Palo Alto for sale will run $350k. Everywhere else is at least $500k for anything. The government locality pay difference for the GS pay scale in SF is 35% vs. 28% in New York/Newark.
I'm sure the city of SF is very comparable to NYC, although you can find some cheaper areas here, but you'll be living further away and commuting, same thing probably goes for NYC (and New Jersey for that matter)
I've been meaning to write a blog post about this, but when I started my tutoring business I was very worried about what I charged. Nervously, I would bring it up at the beginning of early conversations with prospective parents. Later, I realized that parents really use those calls to establish competency. If they believe you are really competent they will pay double or triple the "average" price for your help. People consider tutoring, and especially test prep as investments, and like anyone else they care more about their ROI than their exact cost.
I think the focus for the search on Tutorspree should be on emphasizing competency. Especially for test prep. So, in the big box where price is now, it could show their applicable SAT/LSAT/GMAT score, and perhaps the number of students they have tutored before. Then it could have a one-liner like "Graduating cum laude with degrees in Mathematics and Economics" or whatever. This is addressing what the parents want (especially in ultra affluent and educationally attuned uptown Manhattan).
Even more importantly, it makes the tutors feel like they are competing on quality, not on price. This will encourage better tutors to come to your site. Top LSAT companies will pay a tutor $100+/hour and charge $250+/hour. In order for a great tutor to use your site they must feel like they have a chance to get paid at least equivalently. And, I think in the end the most likely way Tutorspree succeeds is by matching parents/students with incredible students.
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Good luck again! I will be NYC based soon, and have worked as a tutor for many years. If you guys would like to bounce ideas off someone with that background, my email is in my profile.
cheers!
At least, that's how we think about it.