Raise Your Rates By 10%

raise your rates by 10%Another goal for your virtual assistant business I recommended for this year was to raise your rates by 10%. Whether you charge an hourly rate or project fees, you can increase your rates or fee and the beginning of a new year is an excellent time to raise your rates.

Build the expectation of a higher rate into your contracting with a clause similar to “rates and fees are subject to change with a 60-day notice”. I strongly suggest a 60-day notice to allow clients plenty of time to adjust and budget for the increased cost.

I’ve raised my rates several times over the years and always gave my clients plenty of notice. Never have I lost a client due to increasing my rates.

If you are charging an hourly rate, I recommend you move them to a project fee instead. Read my article “Moving Clients From Hourly Rate to Project Fee” at EzineArticles.com.

When did you last raise your rates? How much did you raise them by? How did your client(s) react? I want to hear from you!

 

Free Report: 5 Questions Commonly Asked by New Virtual Assistants

Most new Virtual Assistants have many questions about their new business venture.  It can be quite confusing to know what choices to make since there are so many. I’ve created a free 10-page report that answers just five commonly asked questions by new Virtual Assistants. There are of course many more questions you will have. I encourage you to follow this blog to find additional information and resources to help you succeed in your Virtual Assistant business.photo for free report

The 5 questions that will be answered in this free report are:

1.            What Kind of Investment Should I Expect to Make to Be a Successful Virtual Assistant in 6  Months?

2.            How Can I Market My Business?

3.            What About Confidentiality and Non-Disclosure?

4.            What Topics Should I Write About On My Blog?

5.            How Do I Raise Client Rates?

There is also a Bonus section with some ideas on how to proactively market your business. There are no strings attached to get this report. I don’t even ask for your email. Just download the PDF of 5 Questions Commonly Asked by New Virtual Assistants by clicking here.

Your Questions Answered: Raising Client Rates

Question: Do you have any suggestions on how to raise a long-time client’s rate? Would it be best to let them go and keep adding new clients at my new, rateshigher rate?

I still have my original clients and they take up a good amount of my time, yet are only paying a third of the rate my new clients are. I don’t want to help them any less. Yet when I can make three times as much in the same amount of time with new clients, it becomes a tough balancing act.

Answer:
This is a dilemma virtual assistants who have been in business for a while face. When I first started back in 2005, my starting rate was $25 per hour. Today, seven years later, it’s $50 per hour. Does that mean that my original client still pays $25 per hour? No.

As in any business, clients understand the need for rates to go up periodically. Of course the way we handle raising rates will make the difference between keeping a mutually beneficial relationship and losing a client.

My first suggestion is to add a paragraph to your contract that states something like “Rates are subject to annual review. Client will be given 60-days notice when rates increase.” That way your clients will know up front that there is a possibility of a rate increase annually. They will also know they will be given plenty of notice so they can budget for the increase.

Review your rates around October 1st each year and see if a rate increase is called for. Review each client’s rate to see what would be appropriate for them. Then by November 1 give each client a notice of any rate increase to be effective January 1 of the new year.

What if your client decides they don’t want to pay the higher rate? Not all is necessarily lost. If they really want to find another virtual assistant at a lower rate and you really want to stick to your rate, then this may be the time to let them go. In fact I’ve intentionally let challenging clients opt-out of my rate increase as a way of letting them go without hurt feelings.

But it may be that a particular client is one you really love and they ask you if you’re willing to negotiate another rate. Why not consider doing just that? If the work is something you love and the client is great, but they just can’t afford the higher rate, you may be able to compromise. I have a favorite client that I just recently did this with. We discussed her needs as well as mine and agreed to a compromise. We met in the middle and are both happy. She’s paying less than new clients but I’m still getting a decent rate, love the work, and have a great client who refers me to new clients – and who pay the higher rate!

When you do decide to let a client know you’re raising their rates, don’t think you can say to a $25/hour client, “By the way, next month the rate jumps to $50/hour”. You cannot double your price in one swoop like that. You can say something more like, “It’s that time of year when I review my rates. My rates are increasing across the board. New clients will be paying $50/hour. However, since you’ve been a long-time client and I love working with you, this year I’m only increasing your rate by 25%. The new rates goes into effect 60 days from today. I’d be happy to discuss any questions you have.”

You could let them know that you expect their rate to increase by that same percentage next year as well. When you set the expectation, it’s not a surprise or cause for concern when it happens.

If you and your clients value yourself and your services, you deserve asking for a decent rate from your clients. Read another post I wrote about this subject here.

Remember these rules about raising rates:

  • Create clear expectations; include a paragraph about rate increases in your contract
  • Give your client plenty of notice – at least 60 days – of any rate increase
  • Be reasonable and flexible
  • Value yourself and your services

I’d love to hear your feedback and experiences you’ve had of raising client rates.

Hourly Service versus Package Rate

I’m finding it more effective to move away from charging for an hourly service and towards a package rate for most of my clients. My clients perceive receiving a higher value when they pay a flat rate for a package versus an hourly rate. There’s actually less risk to the client and it’s easier to sell.

It’s also easier to do the bookkeeping and time tracking. When I sell hours, I have to track my time and charge my client for each minute. However, when I offer a flat rate to send out an eblast, submit articles, or post blog entries, I don’t have to track my time and the client knows exactly what it’s going to cost.

What are some ways you can package your services so that you can offer them at a flat rate rather than as an hourly service?

The Adventures of Vanessa Andruz, Virtual Assistant

Today I have a visitor. I’ve interviewed Vanessa Andruz, Virtual Assistant.

Tell me about yourself
I was an Executive Assistant for many years, but when I turned 50, I realized I was so tired of corporate politics…you know what I mean…so I decided it was time for a change. I researched different career paths, but none really seemed to “fit” until I found Virtual Assistance. I set up my VA business, and I’ve never looked back!

Why did you have these e-books written?
I did a LOT of research when I was setting up my business – such as what kind of business structure was best for me, how to set up my home office, how to determine my rates, the best ways to market my business and how to get over my fear of networking. It was hard work and took a lot of time. So, to save others all that research, I put what I learned into a series of e-books I call The Adventures of Vanessa Andruz, Virtual Assistant.”

What is the series about?
It’s all about how to become a Virtual Assistant. The first e-book, Vanessa Has a Dream, describes how I left my job and decided to become a VA. It’s an unbelievable story, but I swear my adventures are as real as I am!

In the second e-book, Vanessa Becomes a Virtual Assistant, I discovered my company name – with a little help from the Universe and my mother – created a business plan template, and chose a business structure. As a bonus, I’ve included a link to a downloadable version of my business plan!

The third e-book is called Vanessa Sets Up Her Home Office. It’s full of practice advice on choosing the right office equipment and supplies for a VA business. There are research notes about computers, fax machines, scanners, ways to access the internet, and lots of good stuff. I even take my readers on a trip to my local office supply store in Washaketa, Wisconsin. What a fun place to shop!

My latest e-book, Vanessa Determines Her Services, Niche and Rates, includes a list of 300 services that VAs can provide – with the appropriate training, of course. I was amazed at how versatile VAs can be!! There’s also a downloadable Client Contract template.

What do you want the readers to get out of the series?
I hope that telling my story will give new Virtual Assistants the guidance they’re looking for when starting their own business. And I hope they enjoy the “personal touches” that I’ve included in all the e-books.

How can the readers contact you if they want further information?
They can email me, and I’m also on Facebook.

How much does your e-book cost?
Vanessa Has a Dream is free! Vanessa Becomes a Virtual Assistant is only $2.95, while Vanessa Sets Up Her Home Office and Vanessa Determines Her Services, Niche and Rates are very affordable at $4.95 each.

Where can the readers purchase your e-book?
They can find all of the books in my series at http://www.VanessaAndruz.com/Products.html.

Vanessa, thank you for stopping by my blog.

You are very welcome. Thank you, Sue, for having me.

About the Author:
Melodee Patterson of Short-term Solutions is a VA who, much like Vanessa, got tired of the corporate life and struck out on her own. She’s enjoying her role as chronicler of Vanessa’s amazing journey. (She does ask that you refrain from calling Vanessa a “fictional character.” Apparently Vanessa is a bit touchy about that fact.)

Vanessa Andruz
Vanessa Andruz

Book Summary:
The Adventures of Vanessa Andruz, Virtual Assistant series is not only full of practical advice for prospective Virtual Assistants, it’s also a fun story. You’ll meet Vanessa’s parents who live in Sedona, Arizona, where her mother reads auras for a living; Vanessa’s friend, Marci, an insurance adjuster unlike any insurance adjuster you’ve ever met; and Vanessa’s ex-husband, Mark, currently living with his “beach bunny” in Cozumel! Check out the series today.