<p>When someone charges $x an hour, that doesn’t mean they are actually making $x/hr. There are certain costs involved with any product or service, in the case of music you are not paying just for the current time but also for all of the hours and hours of practice and study that teacher has put in. </p>
<p>So is it unethical for one person or company to charge more than the “going” rate? Nope. Lots of businesses charge more than most of their competitors and we don’t call that unethical. Pricing is purely a business decision.</p>
<p>That said, if someone was to actually “make” $250 an hour, 40 hours a week, then after subtracting out for self employment taxes, that would be about $500k/yr, which barely puts them into the top 1% (the top 1% averages something close to $1.5 million/yr). Do you think that this professor is in the top 1% in skills and ability and value to society? If so, then $250/hr is a bargain. If not, then just don’t pay him $250/hr. It’s not like anyone is forcing you to do it. My son didn’t get any sample lessons, most prospective music students don’t. It’s not a necessity.</p>
<p>Just putting things into perspective, my doctor charges me $117 just to renew my blood pressure prescription. I spend less than 5 minutes total with the doc/nurse/check-in girl/cashier. That works out to $1,404/person/hr for a crew that has only an average skill and education level. And there are no guarantees whatsoever in medical treatments.</p>
<p>The minimum wage lunch hour french fry cook at McDonalds can produce over 800 packs of fries per hour - thats about a penny per pack. McDonalds spends about 8 cents on the potatoes and oil, and packaging and is thus effectively charging the customer $1,280/hr for the production of a minimum wage worker. </p>
<p>Ya, we have some crazy bad distribution of income/wealth in America, but I think thats maybe a topic for a different website. </p>
<p>So if you don’t mind paying the checkout girl at your doctors office over a thousand dollars an hour, and the minimum wage worker at McDonalds over a thousand dollars an hour, and spending $165/hr with your independent care mechanic who probably doesn’t have a bachelors degree let alone a graduate degree, you really shouldn’t get upset over paying a college professor $250/hr - it’s a bargain. </p>
<p>It’s all about perspective.</p>