Retainers - Set Packages or Suited toward Clients' Needs? - Page 5 - Virtual Assistant Forums

#41 (**permalink**) 04-20-2008

Quote:

Originally Posted by StephanieP View Post

If you want to charge a retainer but feel a bit guilty about being paid for unused hours, you could always find ways to fill it. Especially, if it's only an hour or two. Assuming by this time you've got a pretty good idea about the client's inner workings, you could use this time by identifying ways you could help them further but haven't been asked to do so yet. For instance, I've learned quite a lot about what blogs can do for a business by "listening" to you guys to know that they can be great marketing tools. You could take a couple of hours to put a presentation together explaining what a blog is and how you think one could really help your client...blah, blah, blah. You wouldn't invoice the client for this "extra work" of course because, even if it fit inside of the hours they already paid for, it may still look like you were charging them for something they didn't ask for. Rather, present it as something "above and beyond" that you put together especially for that client. Even if they decided not to take advantage of whatever you presented, it'll make them feel special and impress on them the fact that you're more than just "hired help". It may also make you feel less guilty about the unused hours because you were able to fill them with something for that client.

Also, if you know that this client will be around for a while and you're getting near the end of the month 3 or 4 hours short of the retainer, you could just let the customer know so that they can give you some more assignments that maybe they were waiting to pass along during the next month. I would imagine that, if a client retains you for so many hours per month, you'll be working on some everyday activities that are ongoing with no clear ending so, you could probably just keep on gettin on until you run out of hours.

My plan is to offer a hybrid to meet my clients' preferences. If they have me on a 20 hour retainer, for instance, and I'm constantly going over, I may suggest that we move them up to the next retainer package to ensure that the time is blocked off for them. Likewise, if the consistently fall below the 20 hours (more than just an hour or two), I may suggest that we cut their retainer back to the lower tier. They may end up paying a little more per hour but at least they won't be paying for a whole lot of unused hours.

Good point Stephanie.

I think alot of us (especially women) feel really guilty about using retainers because of the unused hours. In my experience...clients wanna get their money's worth so they'll definately have "something" for you to do.

#42 (**permalink**) 04-20-2008

Quote:

Originally Posted by StephanieP View Post

I would think that offering retainer services to law offices would be a good thing since they often work on retainer as well and fully understand the concept and need (from a client's point of view).

Thank you, Stephanie, very true certain types of law offices work on retainers.

However, most personal injury attorneys (which I'm imaging are going to be my main type of client) are used to fronting all the money up front for a case and then only collecting out of what they can and if they collect for their clients. Sadly, I am aware from working IN these type of law office that sometimes they are slow to pay their bills :-( I was thinking by offering a flat fee based on service to these types of attorneys, it might be appealing because they would know what their costs would be - still thinking here.

I love this forum and am overwhelmed with the resources here at present.

#43 (**permalink**) 04-21-2008

I do have four choices on my contract: PAYG (pay as you go), 10 hours/month, 20 and 30. But when I sit down with my customer, I explain to them that I can work with them for a per month option that would work best for them.

But I do like the idea, as well, of telling them that I would be reserving that number of hours for their business.

I also have a place in my contract that spells out what I would be doing for that particular customer.

#44 (**permalink**) 04-21-2008

Quote:

Originally Posted by misskimble View Post

Hey guys, quick question.

It seems like everybody does their retainer packages a little different. I guess it's just personal preference. Can someone give me an example of what the "tiers" are on your retainer packages and how each tier is discounted.
I'm always looking for better ways to run my business. The way I do it now is at the beginning of the month my clients give me an estimate of how many hours they need to reserve for the month and they pay me 50% of it up front. The rest of the invoice is paid in the middle of the month.
I only do retainer packages for 30 days at a time because I like having a little more freedom to take vacation and have personal time. I would feel kinda trapped with a 3 month retainer but that's just me.So far this has been working fine for me but I'm curious to see how you guys to your tier packages.

Thanks in advance.

For me, the retainer discount is based on the number of hours contracted.
For example.
10-15 hours - 10% discount – $XX.00 SAVINGS!!*
16-20 hours - 15% discount – $XX.00 SAVINGS!!*
21+ hours - 20% discount - $XXX.00 SAVINGS!!*

#45 (**permalink**) 04-22-2008

Quote:

Originally Posted by misskimble View Post

Hey guys, quick question.

It seems like everybody does their retainer packages a little different. I guess it's just personal preference. Can someone give me an example of what the "tiers" are on your retainer packages and how each tier is discounted.
I'm always looking for better ways to run my business. The way I do it now is at the beginning of the month my clients give me an estimate of how many hours they need to reserve for the month and they pay me 50% of it up front. The rest of the invoice is paid in the middle of the month.
I only do retainer packages for 30 days at a time because I like having a little more freedom to take vacation and have personal time. I would feel kinda trapped with a 3 month retainer but that's just me.So far this has been working fine for me but I'm curious to see how you guys to your tier packages.

Thanks in advance.

I think this is a cool way of doing it as well. I have both kinds of clients, ones that are by project and one that is a retainer that will pay in advance for specific hours per month.

Attorneys work on retainers and there are other industries that do too. I admit so far I have found it is hard to determine how many hours per month a client might need you. I'm finding that if I do some work for them for a couple of months to determine what their needs actually might be for hours. Then we can set a specific hours/month to work with.

#46 (**permalink**) 04-22-2008

Here is what I do for my retainers. This was taken off my Retainer Agreement I send to clients. I have it set up with check boxes next to each "level".

Hourly rate is $XX per hour. Minimum one hour. A first-time deposit of $XX must accompany signed contract. The $XX is used toward hours.
Level 1: Monthly Retainer of $XX/hour - for services of 10 - 20 hours/mo.
Level 2: Monthly Retainer of $XX/hour - for services of 21 - 30 hours/mo.
Level 3: Monthly Retainer of $XX/hour - for services of 31 - 40 hours/mo.
Level 4: Monthly Retainer of $XX/hour - for services of 41 - 60 hours/mo.
Level 5: Monthly Retainer of $XX/hour - for services of 61 - 80 hours/mo.
Level 6: Monthly Retainer of $XX/hour - for services of 81 - 100 hours/mo.

All retainers must be paid at the beginning of each month before work starts/resumes.

If I think there will be hours left at the end of the month, I let my client know immediately. He/she might come up with some "personal" things that need to be done. I did someones personal telephone and address listing for them. It worked out great, they were happy and wished I'd done it months ago! Now it's on computer for them, easy for them to update, and print labels too.

Good information here folks! You ladies rock!

#47 (**permalink**) 04-30-2008

This has been a *great* thread! Lots of good ideas.

I've been toying with the idea of having 3 price structures:

1 - Basic hourly rate.

2 - Retainer with discounts based on # of hours. For unused hours, I was considering offering a rollover-type plan wherein they will have 5 business days to use the unused hours before they are lost. Alternatively, 5 business days before the end of the month I'll send an email summary of the hours used/unused so they know they are about to lost them. I still have to figure out what I'm going to do here.

3 - Bulk lots of hours. For those who know they'll need a batch of hours but know they won't need X hours/month, they could buy in lots of 10 hours which would be valid for 1 year. They'd get a 5% discount for every 10 hours they pre-purchase, up to 20% off.

Do you think this is too complicated?

#48 (**permalink**) 05-10-2008

This has been a great thread! And I love the idea that it's been going on for a couple of months! This thread has helped answer ALL my questions about retainers. After one sitting, I've made my decision! As a newbie, I'm going to post an hourly rate and offer "retainers available upon request."

Thanks to everyone and I'd love to hear some follow-ups on some of the earlier postings! Did you change your fee structure? How do you feel about the topic now?

Quote:

I've been toying with the idea of having 3 price structures:

Quote:

3 - Bulk lots of hours.

Vaga, I don't think this sounds complicated, but I think it might be a logistical nightmare!

Can they call you anytime? What kind of deadline guarantee will you provide that far in advance? I guess that one kind of scares me as I'm not a full time VA and like my freedom as Tess said earlier in this thread. But I do think options are good!

Marcia Thompson
Venture VA

#49 (**permalink**) 05-11-2008

Marcia,

I think it would be just like any other tracking for retainers except the bulk lots wouldn't expire like a monthly retainer would. My work priority would be retainers, bulks, then one-offs and that would be outlined. I also plan on having a rush fee so if people do try to pile on at the last minute at least I'll get paid more for it.

#50 (**permalink**) 05-12-2008

MissKimble you are correct!

It is awesome that your client shed light on the value of a VA. It is my plan to obtain my clients on a retainer basis. Do you require your clients to sign an agreement for a minimum number of months or do you allow them to retain you month-to-month (based on their chosen number of hours?)