Hi,
What is the best way of determining your rate in your local area? Do you enquire about the going rate for a temp in your particular field? Go off your own experience and backgrounds? Charge out based upon the size of the business and the work required when it comes in? Or is there another way of determining your rate?

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Kirsty Kraynik
www.aras.com.au

I'm so glad you asked this. I'm about to start a local marketing campaign and I'd love to be better prepared for the feedback/questions I get from potential clients in my area. I got a feeling my rates would have to be considerably different. ????

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L. Caroline Mills of LC Mills, Inc.
www.lcmillsinc.com

Yes I'm a little apprehensive about the sort of questions I'll get back about rates etc. I really want to have a solid answer. I know what I will charge out on an hourly basis now however I'd like to be able to offer my clients package deals if, say, they secured my services on an ongoing basis or for a set number of hours each week. How would I structure this? Would I reduce my normal hourly rate if they book a set number of hours each week or month??

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Kirsty Kraynik
www.aras.com.au

I used labor statistics to determine my rates. The Department of Labor has very useful statistics and they are broken down by state. You can get the information nicely broken down for you at http://www.careeronestop.org/

They also have information that can help you describe what you do. Another good site is
http://www.onetonline.org/ which has extensive descriptions of jobs and their duties as well as knowledge and education needed.

I also used my state's statistics. I'm in Vermont and they have the statistics broken down per region so that in quoting to local folks I have a rationale for my charges. You will probably easily find those statistics by going to your state's Department of Labor site.

The second figure I used, from the U.S. Department of Labor was the average compensation cost (such as insurance, taxes, etc.) The current national figure for that can be found at: http://www.bls.gov/news.release/pdf/ecec.pdf

In determining packages I just used a percentage discount--10% for 10 hours and 20% for 20 hours.

One caveat: I am also new to this and so don't know how my reasoning will work out.

We'll see.

Best of luck to all of us!

Leanne

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WorkSmart, Administrative Assistance
When one of you is not enough

My hour rate is a little higher than my package rates are 5 bucks cheaper than the hourly so by the time they are at 40 hrs on the package its a pretty nice chunk of savings. I based my rates off the VA market, statistics, and client feedback. It works for me although a lot of VA charge a tad higher than I do.

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I love the idea of discounting your rates by percentages for the number of hours booked, great idea.

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Kirsty Kraynik
www.aras.com.au

Check out this VA's packages. http://majesticadminservices.com/default.aspx (Click "Services" and then the flashing/spinning red image at the bottom for rates and agreements) I thought it was interesting how they set up the page.

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L. Caroline Mills of LC Mills, Inc.
www.lcmillsinc.com

They put it all in pdf format could be a problem for someone who doesn't have that, they are organized though! I'm at the library right now to pick up some books, and was checking the forum and the pdf wouldn't open. They told me they don't have it on their pc you have to download it, made me think well never mind and leave the website.

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I also think one very important thing to do before you decide what your rates are is to create a budget. You need to do an expense analysis to determine exactly what you are spending, both your personal expenses, and your estimated business expenses. It is very important to realize that if your rates do not cover your expenses, then your business is not going to make it.

I found this calculator (posted in other threads as well) to be helpful: http://freelanceswitch.com/rates/ But I copied these fields into a spreadsheet and then added and removed fields to customize it to my needs. One important thing: this calculator does not include income taxes or any other business taxes (hence, why I added more fields into the spreadsheet).

I really think you need to start with the budget process before you even look up other's rates because you are only assuming that you're in the same financial boat as someone else, when in fact, you may not be. Also take into account demographics. A VA who lives in London is not going to charge the same rate as one who lives in Arkansas. Make sure you are not short-changing yourself. From my research, many VA's are actually not charging enough.

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Chela Lucia
www.LucentAdminSolutions.com The Bright Choice for Virtual Assistance!

I agree with Chela about creating a budget before settling on rates. I worked with a mentor to write a business plan that helped me to assess my costs. Buying equipment, software, and business insurance all add up and are not givens. Those expenses are real and must be covered by your income. Marketing is also costly including the website. Yes there is free software, but not all is free and, as you grow, free is often not good enough. A sophisticated client isn't going to be satisfied with work arounds.

In the end, working with my mentor, I came to realize that I need to charge a certain amount. If I can't get that amount, then my business isn't viable. According to statistics I am not overcharging, so now I just need to find clients that can afford my level of service. So far that's been the hardest part.

Leanne

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WorkSmart, Administrative Assistance
When one of you is not enough