[Question] Going rates

Hi. I'm stressing out. I started my bookkeeping business at the begining of April. I have had 4 people contact me, we have done the inital contact phone call, and then nothing. Here it is, now July, and no clients. I was hoping for 1 by the end of May but after some research found out that it could be 6 months of more before the first client. Now I'm wondering if it's possible that my rate is scaring people off. I have tried asking other bookkeepers in my area how much they charge and get the same answer. "It all depends on what you need done." Fine, ok, I get that, but please can someone tell me at what price to start? I'm lost and lossing sleep over this. I've been telling prospective clients $20 (starting) or $350 a month. The sad thing is is that is not enough for me to live on. If I were to work for 40 hours a week I'd have to start my rate at $28 in order to make enough for me and my family to live on, and leave at least $100 in the company every nomth. When I look at the job boards, companies want to hire a full time bookkeeper for $11 to $15 in my area (Toronto)

Am I expecting too much? Is $20 an hour too expensive? When can I raise my rate on a client I already have to try to make ends meet?

Please.... can anyone offer me advice? I know that some of you may worry that your clients may be reading this, (or even prospective clients) and don't want to state prices that they may hold you to later, so please PM me if you can.

Kim.

I'm so sorry you're going through such a tough time! I don't know that discussing rates on the forum is encouraged (I'd had to go back and read it all) but I completely understand what you're going through. I will say your hourly rate is WAY TOO LOW (in my opinion).

If possible instead of just offering to do it for them see if people will hire you to teach them how to do it for themselves. Initially it may sound like you're defeating the purpose of getting monthly clients but sometimes if you show them how to do it right, they get so overwhelmed that they decide to let you do it after all. The time you spend teaching them all that is really involved with properly keeping their books allows them to get to know you (trust) and shows them that bookkeeping isn't as easy as some people think. Trust and a relationship of some kind has to be built first. That can be done with the one on one teaching, maybe a "how to" seminar you could have to generate leads, an e-mail newsletter....All of those things would help build trust and showcase your knowledge. It could be more of a trust/time issue than a price issue. Some people are slow to discuss something as personal as the numbers involved with their business/personal finances.

I hope this helps. My heart goes out to you because I know what you're going through! I hope it gets better soon!

Stephanie is right - VAF DOES discourage rate discussions, and you ARE way too low! You may be finding that potential clients have LESS confidence in you BECAUSE your rates are too low! I recommend checking out various VA Bookkeeper websites to get a better idea of what to charge. You can start with my site, www.virtualofficegoddess.com. I have never had a client balk at my rates yet but HAVE had them tell me they were wary of others that 'low-balled' them.

Thank you, Thank you.

Both of you.

I'm a little more relieved now.

Although I will say that I have gone to other sites that offer bookkeeping and they don't list their rates.

Now I have a better idea.

Thank you!

Kim

Hi

Determining your rates and getting those first clients is sometimes so overwhelming, but it does get better. What I found that really helped me in the beginning and even now when I'm looking for new clients (and I always am!) is to plan out my week. Everyday do some marketing and/or research into what I can do to make my business work. It just makes me feel more in control and hopefully results in clients.

Maybe with your bookkeeping too there's different ways that you can package your services.

Good luck!!

Kim,

Calculate your hourly rate and the time it would take to do certain things. Like monthly, post x amount of transactions, balance account(s) and reporting for $xxx.xx. Some times clients have a better grasp if the services come in a bundle instead of hourly. This was your hourly rate does not seem to be the only concentration and instead you can sell the complete service that you will be providing them.

Calculate your hourly rate and the time it would take to do certain things. Like monthly, post x amount of transactions, balance account(s) and reporting for $xxx.xx. Some times clients have a better grasp if the services come in a bundle instead of hourly. This was your hourly rate does not seem to be the only concentration and instead you can sell the complete service that you will be providing them.

Great advice, Lee! I bill hourly (in 15 minute increments) but I can tell potential clients, based on their needs, approximately how much their monthly service will cost them to provide those services. This has been a selling point for new clients because they can better budget my cost and, if they cannot afford the 'whole' package to start, we can discuss having me provide fewer services until they are in a financial position to have me handle the whole thing.

I've been really happy with VAF's own rate calculator. It's a nice explanation of where the money goes and why a VA is a good deal. I wish I could put it in my brochures and not just on my website.

Here's a thread for a rate calculator to help you determine what you should be charging in the first place.

Thank you for the link to the freelance calculator. Love it! Great calculator.