If you are wondering if it’s time to raise your Virtual Assistant rates, then it’s probably time.
Raising your rates is a natural step in any business – and if you don’t have a plan in place to do it regularly, you should put one in place now.
How do you know if it’s time to raise your rates?
Well, if you are thinking about it for any reason, then you probably know it’s time.
But here are a few reasons that you should be thinking about it:
- If you have worked with a client for a period of one year and have not increased their rate
- If you have started providing newer or higher-level services through experience and training
- If you initially set your rate too low
- If you are closing sales easily and your clients are not batting an eye when you tell them your rate
- If you are struggling to make a profit because you haven’t accounted for certain expenses in your business
There are a lot of reasons that you should be adjusting the rate for your VA services.
But a lot of Virtual Assistants already struggle with talking to clients about money. So how do we raise our rates as painlessly as possible?
It’s quite simple, really. You create a policy and then you notify your clients.
If that sounds difficult, you’re going to need some practice, because it’s a necessary part of your business that you’ll have to talk to your clients about over and over again.
And it’s just business – it’s not personal. Don’t make it personal.
Let’s look at all of the reasons above to create a better mindset over rate increases:
Working with Client for Over a Year
When we sign our clients, we usually provide them with a contract that details the scope of work and the rate, among other things. But a lot of VAs then never raise their client’s rates. But an annual increase should be the least of what you are doing to account for your own expense increases and inflation. Just like any job you have, plan to do an annual increase with each client. And if you want, you can also do the equivalent of a ‘performance evaluation’ – to talk to the client about what’s working, what needs to change. It’s a great way to keep your work with your clients fresh and exciting.
New or Higher Level Service Offerings
It’s inevitable as a VA to learn new things – whether it’s as a result of your client’s asking you to do something new for them, or just our natural thirst for knowledge. When you learn a new skill, your expertise increases. And when you are better at what you do, you need to charge more for it. That’s not to say that every time you watch a YouTube video you need to increase your rates, but if you start to move your VA services into a new area, you need to consider what that service is worth to the clients you are supporting.
Initial Rate Too Low
This is the only reason for an instant rate increase, and unfortunately it happens far too often for VAs. If you set your initial rate too low, you need to raise it as soon as possible, if you want to stay in business. You will want to do the math to figure out the correct rate for your services – and don’t forget to incorporate those expenses!
Clients Saying Yes Too Easily
This sounds like a funny one, I know. Trust me, when my business coach told me to do this it felt funny. But it’s absolutely true. If you are doing discovery calls or sales conversations and your clients are saying yes without hesitation, it means there is room to move – and you should move. When we work with our ideal clients, they can dictate our value, and by not having anyone question your rate, you know they value you.
Struggling To Profit
This usually goes hand in hand with a low rate, but not always. If you didn’t calculate your expenses properly when you set your billable rate, you will probably not be seeing much profit. And profit is what drives your business. It’s a business, not a hobby, and you have to make money in order ot keep doing it. Whether you started off wrong or incurred a new expense, you have to adjust your rates to accommodate that.
Raising your rates sometimes seems stressful, but when you are looking at things from a business perspective, you should be able to see why it’s essential to get it right.
From the few situations I have outlined above, if you were advising your client – what would you say?
Now say the same thing to yourself and get those rates up so you can continue providing the amazing service to your clients that you know you can. And make good money doing it.
Remember, it’s not personal, it’s business. You need to understand the motivation behind setting proper rates to providing high quality services to your clients.
Let’s get you on the right path today!
What You Should Do Next:
If you need some help setting or raising your rates, The Virtual Circle is where you need to be. It is a small group of professional VAs who are getting things done in their business through weekly support and training. It’s a low cost, high-value coaching alternative to private coaching. A monthly mastermind group that helps you get to where you want to go.
If you are struggling through your VA business, check out this group to see if it’s the right time for you! Registration is open now.