Pricing Strategies / Meeting Notes July 2019

Location: The Ruby, Hamilton

Attendees: Janet, Crystal, Cathy (guest)

Announcements

Upcoming Events

August 20 – meeting in Grimsby – Discussion Topic: Contingency Planning
September 13 – “Work on Your Business” Day – in Hamilton or virtual, whatever works for you
September 17 –  meeting in Burlington – Working with a Coach
October 15 – meeting in Hamilton – Losing a Big Client
November 19 – Holiday Social
December 17 – webinar – LinkedIn presentation by Salma

 

Discussion: Pricing Strategies

Services are typically priced hourly or by the project, or you may choose to offer packages. Each option has advantages and disadvantages, outlined below.

Hourly

• Easier for you because you don’t have to estimate how long something will take
• Harder for clients to budget if they don’t know how long something will take – you do need to provide an estimated time range, and make sure they’re okay with it if you need to go over the estimate
• The more often you do something, the less time it takes you, so if you don’t increase your rates regularly, you are getting paid less for the same output
• May lead to clients questioning why a certain task takes longer sometimes than others – “nickel and diming” you – this type of client probably doesn’t recognize the value you bring to their business
• Can be harder to recognize your own value – when you know what to do, it may only take a couple of minutes, but the value of doing it is huge
• Makes it difficult if you later decide to subcontract because it may take your subcontractor longer than you to complete the work

Project-Based

• Good for client because they know exactly how much to budget
• Good for you because you know how much you will be bringing in
• Can be difficult to price if you don’t know how long something will take
• Only works when the scope of the project is clearly outlined from the beginning and you charge extra for anything not included in the original quote

Packages

• Best for regular recurring income
• Should be time-limited (e.g. monthly) so clients can’t buy a bunch of hours and spread them over a long period of time
• Be careful when offering discounts for larger purchases; you don’t want to commit yourself to working a lot of hours at a low rate and then not being available for better paying work
• Packages should be for “up to XX hours” rather than just XX hours – that way there is no carryover, and if you can get the work done more quickly, it’s to your benefit

Resources:

• 3 Easy Steps to Creating Packages for Your Virtual Assistant Services, by Tracey D’Aviero, Your VA Mentor
• How To Create Your Virtual Assistant Packages by Susan Mershon, The Techie Mentor
• Virtual Assistant Pricing: Hourly vs. Project by Melissa Smith, The PVA
• How To Create Virtual Assistant Service Packages That Sell by Reese Ben-Yaacov
• Not Sure What Virtual Assistant Packages to Offer? Here’s How to Structure Your Services by Gina Horkey, Horkey Handbook

If you missed the meeting (or if I didn’t include your input), feel free to add your two cents worth in the comments!