It's official: after days of joining the site, I've made about 50+ posts.... so it can now be officially assumed that I'm a VA forum junkie.
Now that we've gotten THAT out of the way, I stumbled across something that caught my attention a bit: value-based pricing. This is basically when you charge your clients based on the services that you offer, instead of clocking in/clocking out your hours. I was reading Danielle Keister's blogs and I ran across this concept. (here's the link where she shares the concept of value-based pricing briefly)>>> http://administrativeconsultantsassoc.com/pricing
(there's also a free pricing calculator available as well). Danielle actually did a survey on VAs (or as she like to call it, administrative consultant), and she said that most of whom she surveyed only makes about a $10,000 yearly profit.
That's not cool in my book, nope, not cool at all.
Has anyone (or does anyone) follow this concept on value-based pricing? I must admit, this concept really grabbed my attention, because (1) clocking in/out and tracking my time makes me feel like I'm am employee when I'm actually an independent contractor, (2) it's a little time consuming, and (3) see number 1. I mean I understand the concept, I really do. You track your hours to let your clients know that you're doing what you're supposed to do. But ask yourself, how many people go to a hairdresser and they clock in and clock out when they shampoo your hair, when they use the bathroom, when they answer the phone, etc? Doesn't make sense, huh?
This is definitely be something I'll be researching as I'm doing my business plan/client agreements.