Per Hour Rates or Project Rates - Virtual Assistant Forums

#1 (**permalink**) 07-11-2008

Okay, I thought I was really on top of things. I have had my basic contract all prepared with various rates for customers to choose from, but I have so many customers that prefer to go by project. The problem is that I'm having a hard time determining how to charge by project since it can vary big time depending on what the project involves. I have no clue how to get started on figuring out what to charge. Does anyone have any ideas on how I can do this? I appreciate any suggestions that you can give me.

#2 (**permalink**) 07-11-2008

For per project rates, I usually try to calculate how many hours I think the project will take and add a couple extra for those unexpected things. Then I charge an amount that would still cover my hourly rate.

So if a project would take 10 hours and my charge is normally $35/hour, the total project would cost $350.

#3 (**permalink**) 07-11-2008

So do you ever vary it depending on the difficulty of the project for instance, doing a presentation versus just typing? Or just use the same formula regardless of how difficult since the more difficult it is, the longer it could take anyway.

#4 (**permalink**) 07-11-2008

This is exactly why we're strictly per-hour. For some things that we've done time and again or have in-house programs for I can now charge per-project, but until I was sure of how long it would take and what would go into each project I invoiced exclusively by the hour.

It can be a good selling point to clients to be able to say 'This costs X start to finish' though so I understand what you're going for - just be careful not to shortchange yourself, or overcharge your clients

#5 (**permalink**) 07-12-2008

This has come up in various ways before but I think Amanda explained it in a very good way:

Quote:

State your assumptions on how you will receive the information. For example, if you quote $x to prepare a mass mailing you want to be clear that the price reflects that you'll get the information in a usable format that has already been reviewed for completeness and duplication, requiring minimal effort on your part. Also state the number of letters, etc.

Throw in a "projects not meeting the above specifications could result in a higher price, to be discussed prior to work commencing" statement and you should be ok.

Personally I think it's better to quote a not to exceed (NTE) amount as a flat fee with a check-in at the 50% and 80% completion mark.

For example, for the same mailing you could do a "The project is expected to require the following in time/materials (insert your estimate) and should not exceed (use this as your buffer). If, at the 50% and 80% review points it is found that the NTE estimate is insufficient to cover the cost/time of the project (as a result of scope changes or delays through no fault of the VA) a revised quote will be submitted for client approval before work can continue."

You should be tracking your time anyway so it shouldn't be a problem. But this way the client gets a semi-fixed price and you get some protection from a crazy client that changes the letter 500 times.

Per project pricing is still based on an hourly rate and you tell your client that the price of the project changes only when the scope of the project changes, that way you don't get stuck with a bunch more hours of work when they want to make changes that weren't included in your original quote. A more difficult project would probably take more hours so you would invariably end up charging more for it in the long.

Per Project Pricing is beneficial in other ways too. For example, what may take you three hours to do now, may only take you 1 1/2 hours once you've done it a hundred times, if you price that as a project then you aren't penalized for simply being for being more efficient.

There's also a good article here followed by some great comments about why you working by project.

#6 (**permalink**) 07-12-2008

I no longer quote per project. I tell people what my hourly rate is, how long I think it will take but tell them that it is just and estimate the invoice will reflect actual time spent on the job.

#7 (**permalink**) 07-12-2008

I stick to hourly rates. I find it is the easiest and truest way of billing. I also round off a bit, so if it takes 6 hours and 10 minutes to finish, I bill for 6 hours.