Happy Monday, everyone!

After months of offering my services hourly, I have finally created project rates as well. Since I will also do some subcontracting work, I was wondering how to go about it:

- On hourly agreement for clients, I offer some discount correlated with the amount of hours a client purchases. For subcontracting work, do you suggest to just stick to one price (for example, $10 less than my regular rate)?

- Same applies to package rates. Does it even make sense to offer packages and adjusted package rates for subcontracting, or shall I again stick to one subcontracting hourly rate?

While I'd like to devise a system that's fair to clients and people I subcontract for, I don't want it to be too complicated and confusing...

Thank you!

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Sara ~
To Your Success, Expansion, & Peace of Mind

I just had a conversation with another VA regarding this very topic.

My hourly is $30. When finding a sub-contractor... even if they charge you $25 an hour, you're still out of a headache and making $5.00 an hour in addition to the $30.00. So I'm really making $35.00 an hour with my subs.

Make sense?

I also have discounted package rates. The more hours they purchase, the bigger the discount (capping at 20% off regular rate). :-)

Hi Sara,
For subcontracting, I offer my services to other VA's at 25% off my hourly rate. I think to create packages for subcontracting will just be more to keep track of. Now if you were a VA's VA, I would say yes.
I like what "The Ultimate PA" (sorry I do not know your name) stated, that you are actually saving them a headache by taking on the project.
They are able to delegate the work, the work gets done, and their client is happy. It's a win-win for both VA's.
I know some VA's just stick with their hourly rate for subcontracting as opposed to offering a discounted rate.

I prefer to use my assistant whom I pay about 15 an hour compared to the 65/hr I bill the client.

Does it depend on your relationship with the sub-contractor? Or do you just see who is available at the time?

Most of the VAs I've worked with as a subcontractor have all had rates already set that they pay subcontractors. Some of them were actually higher than what I charge per hour. A great contractor VA sees the value in the services I/we provide. Most often a VA that sets up a team commands a higher rate from their clients--and they get it--and they pass their "good fortune" to subcontractors.

I remember the first time this happened with a subcontract rate that was higher than my regular, non-sub rate. She explained that she appreciated and valued her team members, "that is the way it is!".

For those who didn't have a set rate, we may negotiate a bit so that we are both happy.

[rant alert] I have to say that the VA that posted about paying subcontractors way below (less than a fourth!) of what their clients are charged, to be honest, I would never work with. This is way below industry standards and [JMO!] a bit offensive. Us that subcontract may not bring in the clients, but we do offer our expert skills, and we need to be valued as to what we can bring to the table. [/end rant]

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Jules, SunRise Virtual Solutions - I rock WordPress customization, XHTML/CSS websites, and Administrative duties.

So what would you consider a fair rate for only doing phone work? I've done subcontracting and have received one rate for specialty work and a lower rate for just phone work.

I have phone work that I want to sub out and want to be fair to sub without sacrificing any earnings I get from the project.

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Lisa M. Bryant | www.jirehvirtualsolutions.com

Business Bytes - I love your rant. I thought the same thing. Wouldnt you be looking at looking after you subcontractors and developing your relationship then undercutting them.