I run a tutoring company, and typically pay my tutors between 40% and 50% of what I bill clients.

This is well above the industry standard of 25% to 35%, and is something that I am very proud of as a former employee of one of those companies.

I just signed on a client for a 10-session package at a rate of $200 per hour.

After signing + paying, he looked up the tutor online and found out that he is charging $90 per hour for clients that find him directly.

He has already paid me, and my contract is rock-solid, so I’m not worried about him going to the tutor instead of me. Additionally, I have a great deal of trust built up with this tutor, so even if the client did try to reach out to him directly, I’m confident that the tutor would tell him to work through me.

However, it’s important to me that my clients are satisfied, so I’m wondering if you all have any recommendations on how to respond without needing to “defend” myself.

From my perspective, it’s pretty simple:

I have built the brand, curriculum, and approach. I also am responsible for marketing, collecting payments, facilitating sessions, and much more (including being responsible for swapping in a tutor – or stepping in myself – if any tutor is unable to fulfill their contract)

But I feel like there’s a way to explain all of this in a way that leaves him with a good feeling about working with us.