Reply To: Am I over-paying for Yamaha??
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With young children I would recommend nylon and not steel string. I teach about 5 young students privately in the age group you teach. The steel strings have too much tension for young fingers to press down to get the appropriate sound needed. With the nylon they will be more successful as it is easier to get the sound out and is gentler on the fingers. A 3/4 size may be big for 1st-3rd graders. If you are able maybe you can do 15 1/2 size and 15 3/4 size so you have some variety given the wide age groups you will teach. Yamaha makes good CGS Student Classical Guitar in 3/4 and 1/2 sizes. Since you are purchasing many at once you should be able to get a good bid for about $100 or less per guitar.
I have seen the Wenger Guitar Racks in use at other schools and are worth it to get them to store your guitars. Hope this helps. Please post if you have any other qestions.