Gosh, I really despise putting rate proposals together.

I have a new client with whom I have done project work for in the past (found me through LinkedIn). She wants to work about 10 hours per month and she's really great about referrals so this one is an extra-special case.

I'm putting together a plan for 10 hours w/10 percent discount, 20 hours w/20 percent discount and 30 hours w/25 percent discount. Plus I am offering 1 hour free time if she sends a 5-hour project client to me and 3 hours free time if she sends me a client who signs for 3 months at 10 hours per month.

So, I'd like your opinions on that plan, please.

Since I can't stand proposals most of my work is one rate, to the minute, billed weekly, no retainer, paypal only (has worked fine thus far) but now I have to be more fluid in my thinking.

1) So please tell me what you think of what I am proposing above.

2) Also, what are your opinions on what rate to bill if say, she chooses 10 hours but the work takes me to 11 or 12 in a month. Would you still continue to charge the discounted rate up to 19 hours before the next rate kicks in at 20 hours?

Thank you!ut:

Janine

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I think your discounts are generous and would charge the discounted rate up to 19 hours. It will definately pay off if the referrals keep coming in.

cafosco,

Thank you for your reply.

Janine

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Hey Janine,

I think if it were me I would charge the discounted rate up to 19 hours as well and I also believe your discount rates are generous as well - I think if it were me I would go for 10% discount for 10 hours, 15% for 20 hours and 20% for 30 but if those percentages work for you then go for it.

Stacey
Fair Admin Support

Hi Stacey,

Thank you for your input. I am toying with both sets of percentage plans. Originally, I set it up (on paper) 10/15/20 percent as you mentioned so it's not entirely off the chopping block. You see, this client has sent me 3 other clients (project work) in the past and she actively promotes my name and business at networking events. So I am undecided what to do.

Thank you!

Janine

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Originally Posted by Your Virtual Wizard

You see, this client has sent me 3 other clients (project work) in the past and she actively promotes my name and business at networking events. Janine

What if you set up a discount schedule you can be comfortable extending to any client, and do something above and beyond for this particular one? I'm thinking more along the lines of a gift basket or tickets to a sporting event, as kind of a bonus. That way you're not tied into a 25% discount forever, but you can still express your appreciation.

I like the free hours for referrals. And as to your original question (lest you think I wasn't paying attention ), I would go with the discounted rate for overages, but make sure you have a policy about what happens to unused hours, too.

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Thanks Cindy,

This client would like the discount and she's asked for a proposal. First she asked me for a sliding scale, which I totally nixed. The problem is that she paid for another VA in the past who had a lower rate than my own. So she's comparing the two.

The difficult part is weighing the anticipated referrals against the rate I offer her. I value her as a client too, we've developed a relationship and this is an ongoing as opposed to a project client so I need to think in terms of all of these factors.

I think she will take the 10 hours, of which 10 percent is relatively standard and no one here has suggested I change that. I may reduce the rest of the proposal to 15 for 20 and 20 for 30 hours...actually, now that I'm thinking out loud with *all* of you, that is indeed what I will do.

Thank you!

Janine

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You sound like you have decided but my question is -- is there a time limit on these or will the percentage continue for the length of the relationship?

I would consider a time line and tie it directly to the number of referrals provided. In this way if you find that the discounts are too steep for you - you can renegotiate without hard feelings.

Just my thoughts.

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Cindy
www.eoseasy.comThe Chrysalis Plan

Hi Jan
Great replies so far - I don't have much to add in respect to the discounts themselves and it seems like you've worked that angle out. It sounds like a very generous setup even with the adjustments you made.

I just wanted to comment on the 'up to 19 hours' part of it - I think traditionally, a retainer is set in place for a few reasons.
1 - it benefits you as a service provider to know you have X hours with client A every month
2 - it benefits the client to know they have access to you for X hours every month

I don't work on retainer so someone should correct me if I'm wrong but isn't the goal to get the client to sign on for as many hours as she thinks she can use [unused hours do not generally roll-over] AND if she goes over those hours, are they not traditionally billed at your *regular* hourly rate?

That's how I would set it up, if I were to issue retainers as an option. Otherwise, why would the client ever be inclined to commit to more hours? It's not going to appear to save her any money to do so - which I think is one of the motivating factors for clients to sign up for a retainer.

Just my two cents - what are your thoughts?

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Originally Posted by Tess

I don't work on retainer so someone should correct me if I'm wrong but isn't the goal to get the client to sign on for as many hours as she thinks she can use [unused hours do not generally roll-over] AND if she goes over those hours, are they not traditionally billed at your *regular* hourly rate?

I sell blocks of time in 5 hour increments at a discounted rate. My unused hours don't roll over but I bill the discounted rate for UP TO an addt'l 2 hours. Anything over that gets billed at standard rates, thus encouraging as close to an accurate retainer as possible.

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