Virtual Assistant Forums | Work from Home

dmages · #1 (**permalink**) 06-14-2011

Not sure how common this scenario is but I did something I sort of regret.

I started off my practice through one of the online job bidding sites and accepted a ton of low jobs. I have kept a few clients going through there and of course I know I can terminate them anytime. I need to do this. I am not making enough money off all these ( almost a year later! ). Kudos to me for keeping them but damn I'd keep me too for the low rates they are paying me. ( no not really I wouldn't, I'd feel bad )

I feel like now that I've got a year of TRUE administrative consulting under my belt its time to join the big boys/girls club and get paid what I am work. Making as little as I do I feel like I barely make enough to survive and I have a ton of clients!

I do have IRL clients who I ALSO gave a low rate to. I am just really unsure how to transition them over and what to say or do.

I quit my full time job about a month ago to work fulltime as a VA.

Has anyone else done this with their rates before? Have your rock bottom rates gotten you run into the ground? I really want to help other VA's to not short sell themselves just to scrounge up clients. You live and you learn I guess....

Thanks for listening....

RhondaHolscher · #2 (**permalink**) 06-14-2011

I started off with a lower rate as well, and have been in business a little over a year. I just raised my rates on my website and started charing new clients the new rate. With old clients I left the rate the same, but if for any reason they don't work with me for 3 months or more I will up their rate to my new rates.

I know that probably isn't helping you though as you are wanted to raise the rates on your existing clients. I would put together a professional letter explaining your rate changes and possibly put the rate changes on a (what's the term I'm looking for) you know give them like 30 or 60 days before the rate increase and possibly do it increments over the next year so it's not a shock to them all at once.

So send out the letter, in 30 days do the first rate hike, in 60 days do the second rate hike etc. Put it on whatever time table works for you and you think would be easier for them to swallow.

I'd love to hear others suggestions on this. This is just my thoughts.

burneyvoa · #3 (**permalink**) 06-15-2011

I think Rhonda has a great idea with the gradual rate increase for your existing clients. Now that you are no longer working, you are a full-time professional and need to increase your rates. Rate increases are not unheard of and if your existing clients like your work, they should be able to handle the increase. 30-60 day increments seem feasible.
Wendy

LGCVS · #4 (**permalink**) 06-15-2011

I have a client that I call my "guinea pig" client. He was my very first client and I discounted him big time. I regret that, but he's been loyal. Any new clients I signed at my normal rate. I attended a seminar recently that encouraged me to raise my rates also. Don't feel bad for doing that. You run your business to make money.

cindyaleli · #5 (**permalink**) 06-15-2011

In the beginning, I think the fear of charging too much and not being able to obtain clients is always your first thought. I did the same. I felt like I would scare people off. After all, working virtually isn't for everyone as I have learned. Some solos simply need/want a real body sitting in their office. Sometimes you have to sell these services and do a little convincing to have them give it a try. Now I sometimes feel like I do so much work and pay for my equipment and postal services and I am not making enough profit. I charge less than the average rate, but I do have clients while some others are starving for work. It is a toss up.

dmages · #6 (**permalink**) 06-15-2011

Thanks everyone. I did not even think about doing it gradually. I work with mostly soloprenuers and very small businesses so I was worried about loosing them from the rate hike.

I am glad some of you can relate. I really did not need the money when I started, more of the experience and building clientele. The extra money was great but now its THE ONLY MONEY. I always find it hard to put myself first. I do have a family and I think if I just remind myself that I have to put them first before clients. Which of course is easy to do.

Teressa · #7 (**permalink**) 06-15-2011

I think that it is usually hard for women, especially mothers, to put themselves first. I think the incremental increase is the best way to go. I've offered my servicesto friends and family members that have businesses or might need something I can provide just for the experience and testimonial.

Tess · #8 (**permalink**) 06-15-2011

Hi Danielle,
I also started out charging much less than I should have - but that was my choice and my lesson to learn as a business owner. I think many of us have to go through that process, you're not alone

Once I realized I was worth more I knew I had to do something, but I really liked the clients I'd been working with and didn't want to lose numerous accounts.

I started by bringing in new clients at market rate or higher. It took a while but once I had enough clients at the higher rate that I could financially afford to lose other clients, I raised my longer-term clients' rates a healthy percentage. After that I caught them up by raising their rates again each year about 15 - 20%.

Doing it this way took some time but all of those clients are still with me five+ years later (and I'm charging 10 times more now) - so it meant less disruption to my business/income and showed my clients that they were an important part of that business.

Yes, you are in business to make money - but loyal clients are an invaluable part of the income equation. I think that raising rates more than once or twice a year can leave clients concerned over when the next rate increase will come - and it's no longer a stable business relationship when that happens.

I know it gets hard to send the invoices when you're thinking 'I could be making $XX more per hour...' To help address that right away I'd recommend sending notice of a 20-25% rate increase that will take effect in 60 days. Or, if you don't mind losing these clients then you can safely raise your rates with them to whatever you want to charge now. If you want to ensure they're with you in a year or more, take the patient approach.

Good luck with whatever you decide! I'll be interested to learn what you do and how it goes for you.