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A few facts about playing the guitar from professionals.

Many guitar teachers participate in my guitar teacher improvement program and gain the benefits of working in a tight group full of successful music instructors from around the world.

and here is another

Not Knowing How To Keep Students For a Long Time (Years!). Your students will continue studying with you as long as you continue to find unique ways to add value and enrich their musical lives. When you do this, it is possible to keep students for 5, 6, 8, 10 or more years! One effective way to ensure that students remain with you longer is to have something to offer that will allow them to continuously advance as musicians. This becomes easy to do if in addition to private lessons you teach several group guitar classes that go in depth on very specific topics. This will allow your students to learn more from you in a new setting while also learning from your other advancing guitar students. Think about the students you have now. You know them well (or at least you should). Ask yourself, in what ways might you be able to provide additional benefits and value to each person you work with? To be clear, I am not implying that you should create an environment of "dependency". Certainly our goal as guitar teachers is to make our students grow so that they may become totally independent and not "need" us forever, but that does not mean you should not constantly look to add huge amounts of value to them for years to come! They should WANT to remain your student for a long time because of the benefit you provide them (not because you are holding them back). Although this might seem like simple common sense, the truth is the VAST majority of music teachers in general, and guitar teachers in particular, don't do a very good job in this area, and that is why so many guitar teachers and students struggle unnecessarily.

and finally

So how can you solve this issue and how much SHOULD you charge for guitar lessons? Always make sure that you charge a 'minimum' of the average price in your local area (even if you are just getting started). Next, work to make your guitar lessons as valuable as possible in order to transform your students into great guitar players very quickly. Once you can do this, you gain the leverage to raise your rates and have a justified reason for doing so.