Your rate is your rate. Don't negotiate.

I'm a poet and didn't know it.

Seriously, even though it's really hard to see it now, you ARE worth every cent. You are a business owner now and changing your mindset from employee to business owner is a really hard thing to do. Take it one step at a time and know that it's the potential client's issues here that we are talking about and not yours.

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Kylie Short
Tilda Virtual Services - Making virtual personal

Originally Posted by Donna

If you fill your time with clients that have an issue with your rate or do not respect your professionalism you will not have the room to fill your business with the clients that you want to work with.

VERY well said!

That is SUCH a hard lesson to learn when you're starting out. You want that first client (or second) so bad that you think you have to take whatever comes along. You also often need the income so bad that you justify that taking a lower rate is better than nothing. Believe me, I've been there! I can only say from personal experience that holding out will make you a lot happier and, often, better off financially.

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Lanel Taylor, CVA ~ Virtual Bookkeeper
Taylored Office Solutions
Custom fit solutions for all your office needs.

Thanks ladies. All of this has been great in helping me think things through. I'll provide the references as she requested. I've let her know that she can receive a discount on services only by retaining more hours (i.e. 10-15 hours on 6 month retainer receive a 10% discount). But now I have to determine if I'm going to remember that question in the back of my mind if she DOES decide to come on board. Once she works with me the value should be apparent to her, but I'm not here to convince. I haven't made a firm decision on this yet. She's looking over my agreement as well. We'll see what becomes of it. I'll keep you posted.

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Tamika R. Johnson, MBA, Principal
administrative partners, llc
www.administrativepartners.net | http://adminpartners.blogspot.com

I agree about the rates. If anyone balks at my rates I let them know the value I provide and if they don't see it, I suggest they shop around. I made the mistake of offering discounts and almost being silently apologetic about my rates when I first started out and I think it showed. I've stopped doing that and the rate is no longer negotiable.

Two clients have been getting a 10% discount b/c they are members of the Chamber of Commerce and I gave them the Chamber rate when I started out. I haven't heard from them in months except for a time when each of them called asking for free advice. Should they contact me for more work in the future they are going to find that the rate has been moved up to my normal rate that everyone pays.

I find now that I am more confident about my rates, I don't get the pushback (as much). One person called a couple of weeks ago to find out what I charged for transcription and she seemed kind of shocked at my hourly rate. I said that I sensed some price sensitivity on her part and directed her to where she could download Express Scribe if she wanted to try the transcription herself. She called back yesterday and retained me to do the transcription.

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Julia

I like that approach Julia!

Donna

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Donna Cravotta
Virtual Management Concepts LLC
www.virtualmanagementconceptsllc.com

Originally Posted by tamikarjohnson

I've let her know that she can receive a discount on services only by retaining more hours (i.e. 10-15 hours on 6 month retainer receive a 10% discount).

That's a great way to negotiate...you get a bigger deal and she gets a break. Now the ball's in her court.

Originally Posted by tamikarjohnson

But now I have to determine if I'm going to remember that question in the back of my mind if she DOES decide to come on board. Once she works with me the value should be apparent to her, but I'm not here to convince.

One thing to think about here...if she signs with you after her concern that means you sold her. Personally, I'd take it as a huge compliment that she wanted to go with you after she gave some concern over your rate. You're right...you're not here to convince her.

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Lanel Taylor, CVA ~ Virtual Bookkeeper
Taylored Office Solutions
Custom fit solutions for all your office needs.

Soooo....
She called me today to let me know why I hadn't heard from her. She said there is no doubt that she wants to work with me, especially after speaking to my referrals. However, because her industry is commission based (financial industry), she wants to really figure out how to get the most value out of my services and see measurable results. During our initial consultation, she indicated that as she saw increased business she would provide bonuses, I think she thought that would help with the hourly rate. I just listened:-)

So what it boils down to is that she will work with me hourly for the first month and see how things work out and then as my services help her increase her business she will switch to retainer.

She said she did not want to offend me, she knew that she needed me and she definitely wants to work with me, but she's trying to fit the cost into her business. In the end she tried one more attempt to test the waters as to a discount on the hourly rate, but I told her she could receive a discount only when she retained hours.

So there you go.. I'm meeting with her on Monday about my life insurance policy :-) but likely won't start working with her as a client until Sept. Which is fine. I have alot of things going on anyhow.

tj

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Tamika R. Johnson, MBA, Principal
administrative partners, llc
www.administrativepartners.net | http://adminpartners.blogspot.com

Tamika, I am so happy to learn that you've stood your ground here and really taken control of the situation from day 1 - this client will respect you all the more for it!

Good job!

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Originally Posted by cowgirlc

I can chime in here, when I first open my doors I would get that your rate is too high mess. And I gotta tell you, when you are trying to get that first client it was really hard to take the advise of my peers who instructed me to stand my ground. So now when someone questions my rate, at that point, I no longer want to consider that person for partnership. You see, now I look at prospect just like they are looking at me. They are trying to make a decision as to if they want to work with me. At the same time, I am trying to make that same assesment, do I want to work with you. Some people are just not the right fit. I perfer the client that has a sense of humor along with the ability to get down to professional brass tacks and go toe to toe with me at there side. I work with just such a client, who values and respects that I am a business owner just like he is. We disagree at times, he will blow up if I make a mistake because that it his personality, yet in the same breath apologize. I in turn can go to him and say, you know what.....you're wrong here, and he will readjust his position. Then we also have fun working together, I'll tell him to get of the couch and quit watching those soap operas, and he'll shoot back 'but tracy is going to tell jake who the father is' (lol) I say all of this to let you know that the right client is out there. Stab\nd firm on the rates you have set. Interview your prospective clients just as they are interviewing you. Know you're worth it. Cynthia

Very well said, Cynthia...and hello to everyone else!

Thank you so much for posting and discussing this topic! I also want to thank each one of you for sharing! I'm a newbie on here, and I really do appreciate knowing that I am not the only one who has been in situations relating to rates and pricing and having potential clients try and haggle concerning price.

Yes, I've also made the mistake of working for a client at a ridiculously low rate - partially because of my own personal interest in the type of business that he did, and partially because I was chomping at the bit to get some work. I did that for 2 months straight - working an average of 26 hours a week on his projects, and doing what my life coach calls "Executive Miracle Working." After the "evaluatory phase" that we had agreed upon, I informed this client that we needed to review my rate of pay, as well as terms, and I stood my ground and informed him that I would no longer continue with my services unless I was paid my standard rate. He tried to haggle, as he does with any other contractor that he hires, and I stood firm concerning my rate. While I have over 17 years of executive administrative experience, combined with a college education behind that as well, I've always found it difficult when it comes to negotiating, however; this was a fantastic learning experience for me, and now it's not difficult to discuss anymore. My rate is my rate. I know who my ideal client is, and if potentials ask me what I charge one sentence into a conversation, I know that they are what I call potentials who have "Champagne tastes on a Beer budget", and they not only can't afford me, but will never value me and my contribution either.

All of you know your value...you know what you are worth and what you contribute. Keep that in mind, and I wish you all the best of success!

I agree with some of the comments regarding sticking to the rate at which you have placed value for your services. Always use your intuition about whether someone is an ideal client or not.

I just wanted to add that whenever you receive positive feedback from a client, why not have ask them if they would be willing to provide a testimonial or provide feedback as a reference to new clients? In many cases, this can turn in to a win-win situation for the client giving the reference.

I hope it worked out for you!

Jennifer