Rhonda,
if the idea of package rates appeals to you, maybe that means it is time for you to consider changing your business model. If I did that conversion, I'd offer it to your existing customers as an optional change, and then only offer the new package rates to new customers.

Margretta

I am stuck in this section as my coach stated I have to redo my numbers because I'm charging too low.
So, I charge by hourly packages (5hr, 10hr, 20hr) nothing below
I also charge a set-up fee for two reasons: just in case there is a problem receiving payment and also to set them up in my CRM system.
I do require the contract to be up to 3 months to see if they will continue or not. My issue is what should I be charging or how do I break the numbers down? I am trying to transition from the corporate world to full time VA though I am just bartering right now and don't have any full time clients. Please Help!!

__________________
Carmen E Saunders, CEO
VOIS, LLC www.voisllc.com

Great advice offering blocks of time along with some hourly depending on client requirements.

How does block time work?

Does a client purchase say three hours and a VA does whatever is needed by the client in those hours for $X?

Originally Posted by alcbiz

How does block time work? Does a client purchase say three hours and a VA does whatever is needed by the client in those hours for $X?

Yep. That would be a pre-paid package. I usually sell mine in larger blocks, though, since I offer a 10% discount for pre-paid time. I offer 12,20,32, and 40 hour blocks to make it worth MY while...

I realize that everyone does not agree with this, and I respect that.

I like the recommendation of the authors of The Wealthy Freelancer, and from other freelance bloggers. Their advice, after years of experience, is be a "project pricer." The authors state that, "When you bill by the hour, clients tend to judge you by your hourly rate, not by the value you bring to the project. This opens the door to other freelancers with similar qualifications, who could potentially replace you, simply by offering a lower hourly rate!" They say that "you become a commodity." There are, of course, exceptions. For example, if the client does not know all of the project requirements.

I frequent freelance blog sites, not all of which are VAs. But, hands down, not one of them lists hourly rates. I consider the advice to be a project pricer to be one of the most valuable pieces of advice for my prospective business.

Originally Posted by Office Goddess

I offer 12,20,32, and 40 hour blocks to make it worth MY while...

Boy! Your response makes me really interested in using this method rather than what I had planned to do!

However, when you have two clients who needs a great number of hours, i.e., 20-40, how do you handle their work especially if it comes in at the same time?

Second, do you charge by using your standard fee (mine is $40 per hour) times the number of hours (20 for instance) and then the client pays $800 before work begins?

Third, how long is your contract since the recommendation in former posts is not to go with one year? Or, is advisable to have a short-term contract and renew it periodically or just let it stand until something happens that makes it necessary to change the existing one?

Thanks so much for your help. They don't call you Office Goddess for nothing!

However, when you have two clients who needs a great number of hours, i.e., 20-40, how do you handle their work especially if it comes in at the same time?
My prepaid blocks are for a 30-day period so I can juggle client needs. If someone needs me for 40 hours/week, I subcontract as I don't want to be tied to one client.

Second, do you charge by using your standard fee (mine is $40 per hour) times the number of hours (20 for instance) and then the client pays $800 before work begins?
Yes - BUT - I offer a 10% discount for prepayment so if someone buys, for example, 12 hours for the month then they would be billed IN ADVANCE for the 12 hours less a 10% discount. The prepaid blocks expire at the end of 30 days and work doesn't start until payment has been received.

At the end of the month, they would receive an invoice showing the total hours worked less the 10% discount (as a lump sum discount), less the deposit and a balance due for any additional hours (at the 10% discount). The invoice reflects the full hourly rate less the 10% discount as a lump sum so they know what the services were actually worth had they not prepaid.

Third, how long is your contract since the recommendation in former posts is not to go with one year? Or, is advisable to have a short-term contract and renew it periodically or just let it stand until something happens that makes it necessary to change the existing one?
My contracts are open-ended. They contain a start date and a 'either party can cancel with 30 days notice" statement. (not exactly worded that way, of course!) A new contract would be issued for substantial changes, such as a rate increase.

Originally Posted by Office Goddess

Third, how long is your contract since the recommendation in former posts is not to go with one year? Or, is advisable to have a short-term contract and renew it periodically or just let it stand until something happens that makes it necessary to change the existing one? My contracts are open-ended. They contain a start date and a 'either party can cancel with 30 days notice" statement. (not exactly worded that way, of course!) A new contract would be issued for substantial changes, such as a rate increase.

I was wondering this also. If you guys dont recommend yearly contracts then for how long are the contracts? Having an open ended contract sounds reasonable. I'll keep that in mind.

__________________
Paulette R.
Romero Communications

Originally Posted by Office Goddess

My prepaid blocks are for a 30-day period so I can juggle client needs. If someone needs me for 40 hours/week, I subcontract as I don't want to be tied to one client. Yes - BUT - I offer a 10% discount for prepayment so if someone buys, for example, 12 hours for the month then they would be billed IN ADVANCE for the 12 hours less a 10% discount. The prepaid blocks expire at the end of 30 days and work doesn't start until payment has been received. At the end of the month, they would receive an invoice showing the total hours worked less the 10% discount (as a lump sum discount), less the deposit and a balance due for any additional hours (at the 10% discount). The invoice reflects the full hourly rate less the 10% discount as a lump sum so they know what the services were actually worth had they not prepaid. My contracts are open-ended. They contain a start date and a 'either party can cancel with 30 days notice" statement. (not exactly worded that way, of course!) A new contract would be issued for substantial changes, such as a rate increase.

I am so embarrassed! I completely forgot this post!. Consequently, I didn't thank you for such helpful responses to my questions.

Thank you so very much, Ms. Chalmers (and I've probably goofed that up too! )