What is your minimum rate? - Virtual Assistant Forums

JRuner · #1 (**permalink**) 11-19-2007

I live in Idaho and have interviewed more experienced VA's about their rates. In Idaho it runs from as low as $15 per hour for very basic services (I feel thats too low) to as much as $XX hour for highly skilled VA's. After interviewing them and looking at myself as a rookie and new small business I settled on $XX an hour charged in fifteen minute blocks. My minimum covers all of my basic exspenses and allows for a small profit. How does this compare with your minimum? Idaho is known as low wage state so I am trying to maintain a moderate rate.

Thanks,

John Runer

Lia-VSS · #2 (**permalink**) 11-19-2007

I am willing to charge from £XX a hour (about $XX dollars) / €XX; however I have been advised that I am charging a bit too low, even though I don't have hardly any outgoings (i.e. rental, electricity, etc). I have used the price calculator and they say that to break even the price is £X. So I hope I'll be making a profit... :s

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Virtual Office Guru · #3 (**permalink**) 11-19-2007

When I get my business up and running, I think at the beginning I'll take some lower paying jobs until I get my feet off the ground, but my advertised rate will be $XX/hr until I get experience under my belt.

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Lia-VSS · #4 (**permalink**) 11-19-2007

I was hoping £XX would be acceptable. I am having to agree with snjordan about accepting lower paid jobs, however I feel that a lot of businesses in my area will be only too happy to pay £XX for the first year or so. (or at least 6 months). Hopefully I will be upping my rates to £XX per hour after that, as I am going to be commuting from somerset/bristol (hopefully!!)

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JRuner · #5 (**permalink**) 11-19-2007

Thank you for the responses. I too will work for a slightly lower rate since I am just starting out, however you can't afford to charge too little. Based on prior service business experience I have found being the lowest priced service does not attract the best clientele.

John Runer

Lia-VSS · #6 (**permalink**) 11-19-2007

Originally Posted by JRuner

Thank you for the responses. I too will work for a slightly lower rate since I am just starting out, however you can't afford to charge too little. Based on prior service business experience I have found being the lowest priced service does not attract the best clientele.

John Runer

true, but for my 'target areas' (west kent, bristol, somerset) there aren't any VA businesses around. So perhaps a lower price for 6 months, increasing to £XX (about $XX) would be fine

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Rebecka Melson · #7 (**permalink**) 11-19-2007

No matter what you charge, I would advertise the rate you want. You can always negotiate a lower rate with a client, but you can't charge a rate higher than what you advertise for. Say you want $XX.00, but you would work for $XX, then advertise $XX.00. When you respond to RFP's you can respond with a lower rate as well, then if a client goes to your website and sees that you actually charge a higher rate they will feel like they are getting a great deal, but if they see a lower rate advertised on your website they are going to feel ripped-off.

I would recommend not increasing your rates more than once a year and sending your clients a notice in October/November for an increase on the first of January the following year, which is customary (or 2 months prior to end of their contract term). Most companies prepare their annual budgets around the first of the year.

You will start losing clients if you increase too often, because they will feel you are too unpredictable.

Virtual Office Guru · #8 (**permalink**) 11-19-2007

Great Advice Rebecka! Thanks!

Lia-VSS · #9 (**permalink**) 11-19-2007

thanks for that - I was going to do a yearly increase thng, anyway.

I think your going rate should reflect your company outgoings, etc...

beachlover · #10 (**permalink**) 11-19-2007

I used this worksheet to calculate my lowest rate. My minimum rate is a little more that what I calculated on the spreadsheet. That rate is for my retainer package. I am hoping the way I have it set up will work. I have not found my first client yet.

What does RFP stand for?

Lia-VSS · #11 (**permalink**) 11-19-2007

thanks for that link, but I found the worksheet to be a little bit confusing, but it works out to be about £XX an hour. Cheers for that!

(thank god for no rental/electricity charges!!)

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beachlover · #12 (**permalink**) 11-19-2007

I forgot to mention that I had a little problem with the billable hours on the worksheet. This is what my hours and I can up with. I will also use the below billable hours on my website for the comparison of a full-time employee and VA. If I miscalculated or just incorrect please feel free to let me know.

Vacation Time (2 weeks) 80 hrs.
Popular/Federal Holidays (10 days) 80 hrs.
Sick Time (5 days) 40 hrs.
Lunch Time (47 hoursx5 days) 235 hrs.
-----------
Non-billable hours 435 hrs.

Billable hours 2,080 hours
Non-billable hours 435 hours
-----------------
Total non-billable hours 1645 hours

JRuner · #13 (**permalink**) 11-19-2007

Wow! There are a lot of great responses here. I have negotiated a lower rate in order to acquire my first client. In addition my client paid a little more by bartering some of her physical therapy services! It never hurts to negotiate. After year of service I plan to increase my minimum rate by twenty percent.

John Runer

Lia-VSS · #14 (**permalink**) 11-19-2007

Same here John. After a year I plan to increase to £XX (about a 10% increase) per hour for basic services.

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Office Goddess · #15 (**permalink**) 11-19-2007

RFP - request for proposal.

I charge $XX/hour for basic office support (data entry, word processing, internet research, etc.) and $XX/hour for bookkeeping services.

Don't shortchange your value because of your physical location or because you are a rookie VA. You wouldn't be able to work as a VA unless you were a skilled professional and, keep in mind that although you may LIVE in a lower wage state, as a VA you can work anywhere.