Top 3 Mistakes Virtual Assistants Make When Setting Rates and Package Pricing

One of the most important aspects of establishing a profitable VA practice is determining your rates and how to transition those rates into your package pricing.

Many of the newer VA clients I work with usually establish their rate by looking at other VA websites, or talking to other newbies and asking them what they charge. Some even set their rates by asking prospects what they’re willing to pay. YIKES!

So what’s wrong with that thinking? Unfortunately, in most cases, you cannot sustain yourself and grow a profitable business without determining exactly
what YOU need in the way of income, and what your expenses are, in order to keep your head above water. This can be almost as disastrous as not marketing your business.

Here are those Top 3 Mistakes:

1. 1. Not understanding what goes into setting your rates! As with any business, to be profitable and to stay in business long-term, you need to be charging rates that allow you to pay for general expenses (telephone, Internet connection, business insurance, website hosting, computer equipment/software, printer supplies, etc.) before you can set rates for what you need to take as an income, what you’ll need to budget for marketing, and what you’ll require as profit to continue to grow. Don’t just guess, take the time to really figure out what that really looks like.

2. 2. Setting Package Pricing without clear package details! So many of my coaching clients get hurt when setting package pricing because they aren’t detailed enough in communicating what will be included in the package. It’s not enough to say, “we’ll promote your blog post to your LinkedIn groups”, but to say how many that could be. Some of my clients have 8-10 LinkedIn groups, some have almost 50. It would be difficult to calculate the time difference in posting to that number of sites, so your package outline should include something like “promote your blog posts to your LinkedIn groups (up to 20)”. Now you’ve set specifics you can calculate within the package and set clear guidelines for the client.

3. 3. Not listening to the client’s needs and understanding how to quote them – by the hour, by the project, on retainer, or with a package! I recently signed three new clients from a popular RFP system. This was a little above the norm, but all three of them came to me with a similar issue. They had been quoted by several VAs and all of them were insisting on packages. They didn’t understand it, and wanted to have an hourly rate. The answers they got were all across the board from $25-65/hour with some of the $65/hour package quotes being less expensive than those quoting a lower hourly rate. They were all pretty confused.

Unlike other VAs, I don’t quote pricing in my initial RFP response, but prefer to get up close and personal with them on the phone. It’s just always been a much better way to find out if they’re the right fit for me, and vice versa. Not to mention being able to listen to their needs, and understand how best to quote them based on those needs.

If I’m able to get a prospect on the telephone, my rate of closing on the sale is about 85%. That really tells me that it’s important to get a better understanding of the prospect and how they look at working with a virtual professional.

Want to learn more about how to manage and establish your rates, and package pricing, as well as, key insights on closing the sale? Join me for my FREE teleseminar next Thursday, February 16, 2012 at 3:00 PM Eastern.

We’ll dig deep into Pricing/Rates – Retainers, Packages and Projects.

Here’s some of what I will be sharing:

Why package pricing is easier for prospects and clients to manage
How to establish profitable rates for your particular practice.
How to use your rates to create packages that will entice prospects & clients, utilizing your rates.
What are the latest ways to create competitive retainer programs for clients wanting to purchase blocks of time?
How to transition hourly and retainer clients to packages.
How are packages being received by prospects and clients?
What about clients who want project rates and just don’t fit in to any other option?
And a whole lot more – this is always a well attended session – bring your questions and get ready to grow your business!

Plan to be on the call next week to ask me any questions you have about how to set your business up for success in 2012 by overhauling your rates and pricing options for your clientele. You’ll also receive a recording of the session and have an opportunity to connect with me one-on-one, after the session, to talk about your business and what steps you need to take to get on the Inner Track to 6-figure success in 2012!

You must register in order to attend. Please visit: http://vabizcoach.com/inner-track.html

Jeannine Clontz, provides professional business coaching to established and start-up virtual assistants (VA’s). Learn more about Time Management for Virtual Assistants by downloading her FREE report “A Fresh Look at Time Management for Virtual Assistants”, or request her FREE audio CD “What’s Holding Back my Business Success?”, and more by visiting: http://www.VAbizcoach.com ; or contact her at: coach@VAbizcoach.com.