{"id":3896,"date":"2024-01-10T07:00:00","date_gmt":"2024-01-10T12:00:00","guid":{"rendered":"http:\/\/www.yourvamentor.com\/blog\/?p=3896"},"modified":"2024-03-19T09:39:25","modified_gmt":"2024-03-19T13:39:25","slug":"podcast-mistakes-virtual-assistants-make-setting-rates","status":"publish","type":"post","link":"https:\/\/www.yourvamentor.com\/blog\/2024\/01\/podcast-mistakes-virtual-assistants-make-setting-rates\/","title":{"rendered":"Podcast: Mistakes Virtual Assistants Make Setting Rates"},"content":{"rendered":"\n<p>Welcome to another episode of the podcast that teaches you how to be a ridiculously good virtual assistant. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Today I want to talk about rates. It\u2019s a common topic of discussion with VAs at all levels of their business &#8211; and we all struggle with it at times.<\/h3>\n\n\n\n<p style=\"background-color:#dce0e2\" class=\"has-background\">Today&#8217;s Quote:   Don&#8217;t fall into the irresponsible trap of setting low prices. It will kill your business cold. Low prices attract cheap customers with luxurious demands. \u2015 Mac Duke The Strategist<\/p>\n\n\n\n<iframe loading=\"lazy\" title=\"Embed Player\" src=\"https:\/\/play.libsyn.com\/embed\/episode\/id\/29429038\/height\/128\/theme\/modern\/size\/standard\/thumbnail\/yes\/custom-color\/04949a\/time-start\/00:00:00\/hide-playlist\/yes\/font-color\/FFFFFF\" height=\"128\" width=\"100%\" scrolling=\"no\" allowfullscreen=\"\" webkitallowfullscreen=\"true\" mozallowfullscreen=\"true\" oallowfullscreen=\"true\" msallowfullscreen=\"true\" style=\"border: none;\"><\/iframe>\n\n\n\n<p>Click the play button above to tune in, or choose your favourite podcast player below:<\/p>\n\n\n\n<a href=\"https:\/\/open.spotify.com\/show\/2vbBeibF7umX44eHXDeXHa\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"https:\/\/www.yourvamentor.com\/wp-content\/uploads\/2022\/07\/Spotify.png\" alt=\"Spotify\" title=\"\" border=\"0\" width=\"60px\" align=\"\"><\/a> &nbsp;\n\n<a href=\"https:\/\/podcasts.apple.com\/ca\/podcast\/the-ridiculously-good-va-show\/id1635563103\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"https:\/\/www.yourvamentor.com\/wp-content\/uploads\/2022\/07\/apple-podcast.png\" alt=\"Apple Podcasts\" title=\"\" border=\"0\" width=\"60px\" align=\"\"><\/a>\n\n<a href=\"https:\/\/www.iheart.com\/podcast\/263-the-ridiculously-good-va-s-99637625\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"https:\/\/www.yourvamentor.com\/wp-content\/uploads\/2022\/09\/iheartradio-icon.png\" alt=\"I Heart Radio Podcasts\" title=\"\" border=\"0\" width=\"60px\" align=\"\"><\/a>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Connect with Tracey D&#8217;Aviero, VA Coach and Trainer<\/h3>\n\n\n\n<a href=\"http:\/\/www.facebook.com\/yourvamentor\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"http:\/\/www.yourvamentor.com\/wp-content\/uploads\/2012\/06\/facebook_logo-1-e1428604663756.png\" alt=\"Facebook\" title=\"\" border=\"0\" align=\"\"><\/a> &nbsp;\n\n<a href=\"http:\/\/www.twitter.com\/Tracey_D\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"http:\/\/www.yourvamentor.com\/wp-content\/uploads\/2012\/06\/new-twitter-logo-e1428604645161.jpg\" alt=\"Twitter\" title=\"\" border=\"0\" align=\"\"><\/a> &nbsp;\n\n<a href=\"http:\/\/www.linkedin.com\/in\/traceydaviero\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"http:\/\/www.yourvamentor.com\/wp-content\/uploads\/2015\/04\/linkedinicon-e1428604864511.jpg\" alt=\"LinkedIn\" title=\"\" border=\"0\" align=\"\"><\/a> &nbsp;\n\n<a href=\"https:\/\/www.instagram.com\/yourvamentor\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"https:\/\/www.yourvamentor.com\/wp-content\/uploads\/2022\/07\/instagram.jpg\" alt=\"Instagram\" title=\"\" border=\"0\" width=\"25px\" align=\"\"><\/a> &nbsp;\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/www.yourvamentor.com\/blog\/wp-content\/uploads\/2024\/03\/TRGVAS-Episode-83-Cover-300x300.png\" alt=\"Mistakes Virtual Assistants Make Setting Rates\" class=\"wp-image-3971\" srcset=\"https:\/\/www.yourvamentor.com\/blog\/wp-content\/uploads\/2024\/03\/TRGVAS-Episode-83-Cover-300x300.png 300w, https:\/\/www.yourvamentor.com\/blog\/wp-content\/uploads\/2024\/03\/TRGVAS-Episode-83-Cover-1024x1024.png 1024w, https:\/\/www.yourvamentor.com\/blog\/wp-content\/uploads\/2024\/03\/TRGVAS-Episode-83-Cover-150x150.png 150w, https:\/\/www.yourvamentor.com\/blog\/wp-content\/uploads\/2024\/03\/TRGVAS-Episode-83-Cover-768x768.png 768w, https:\/\/www.yourvamentor.com\/blog\/wp-content\/uploads\/2024\/03\/TRGVAS-Episode-83-Cover-1536x1536.png 1536w, https:\/\/www.yourvamentor.com\/blog\/wp-content\/uploads\/2024\/03\/TRGVAS-Episode-83-Cover-2048x2048.png 2048w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Episode Notes:<\/h3>\n\n\n\n<p>We talk often of setting rates in our Virtual Assistant business.<\/p>\n\n\n\n<p>I see lots of you posting questions about how to charge for this service or that service, and I always come in with the same advice.<\/p>\n\n\n\n<p>Do the math for how much your services will be &#8211; don\u2019t just pick a number out of thin air.<\/p>\n\n\n\n<p>When you ask someone in a group how much you should charge for a particular task or service, you are picking a number out of thin air.<\/p>\n\n\n\n<p>If your business is going to be successful, you need to make sure that what is coming in will cover what is going out, and then of course you need to leave room for some profit as well.<\/p>\n\n\n\n<p>As a service based business owner, we can often make the mistake that what we charge is what we make &#8211; and then we don\u2019t leave room for the things that we need to run our business well.<\/p>\n\n\n\n<p>You don\u2019t need to gauge customers, but you do need to run your business like a business.<\/p>\n\n\n\n<p>So let\u2019s talk about a few of the problems that VAs have with setting rates properly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1 &#8211; Calculate Your VA Rates By Doing the Math<\/h3>\n\n\n\n<p>The first mistake I see VAs make is not doing the math to set their rates.<\/p>\n\n\n\n<p>It\u2019s not hard to do, and yet so many people skip it.<\/p>\n\n\n\n<p>Figure out how much you need to make. That means gross revenue.<\/p>\n\n\n\n<p>How much you need to pay yourself, how much you need to pay expenses, and how much you want to budget for other things like training, professional development, events, and so on.<\/p>\n\n\n\n<p>When you work with real numbers you can actually build a profitable business and you can get help when you need it, you can learn new things, you can go to events to find clients.<\/p>\n\n\n\n<p>Do the math and I think you\u2019ll find that you either a) deserve a raise or b) have money to get some of that support or training that you want.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2 &#8211; Starting Your VA Rates Too Low<\/h3>\n\n\n\n<p>The next big mistake I see VAs make is starting their rates way too low.<\/p>\n\n\n\n<p>If you are doing this or have done this, don\u2019t worry you are not the only one.<\/p>\n\n\n\n<p>This is super common. It\u2019s hard to ask people for money.<\/p>\n\n\n\n<p>Especially for yourself. We always undervalue ourselves.<\/p>\n\n\n\n<p>Imagine if you were setting rates for your clients, or your spouse, or a friend. You would never undervalue them the way you undervalue yourself.<\/p>\n\n\n\n<p>It\u2019s a mindset issue &#8211; and doing the math as I described previously can really help you set better rates and feel good about it.<\/p>\n\n\n\n<p>What happens when we start our rates too low? Or maybe I should say how does that happen? Well either we haven\u2019t set them right to begin with or we have said yes to a client who told us they couldn\u2019t afford our regular rate and therefore asked for a discount. Because we don\u2019t want to turn down the business.<\/p>\n\n\n\n<p>The number of times I have heard VAs tell me \u2018they don\u2019t have a lot of money, and I want to help them.&#8217; and then struggle in their own business, is staggering.<\/p>\n\n\n\n<p>Why we value others over ourselves I\u2019ll never know. I\u2019m not a psychologist, but I know that if you aren\u2019t charging enough for your services, you are going to suffer. Your client will not, because they are getting what they want. How is that fair?<\/p>\n\n\n\n<p>When you start too low, it\u2019s really hard to do increases. Which brings us to our next point.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3 &#8211; Never Increasing Rates for Your VA Clients<\/h3>\n\n\n\n<p>I have helped LOTS, I means lots, of VAs increase their rates. Because they don\u2019t know how to do it.<\/p>\n\n\n\n<p>So they just don\u2019t.<\/p>\n\n\n\n<p>They are afraid of losing the client.<\/p>\n\n\n\n<p>Without my help, there are probably thousands of VAs out there who don\u2019t raise their rates, ever.<\/p>\n\n\n\n<p>Here\u2019s the thing &#8211; everything increases in price. Look at the price of a loaf of bread in the grocery store these days. Outrageous. But we pay it because we need it.<\/p>\n\n\n\n<p>Everything goes up in price after a time. Your rates have to also.<\/p>\n\n\n\n<p>I say this all the time &#8211; I charged $25\/hour for my VAs services back in 2008. If you are charging $25\/hour right now in 2024, it\u2019s not enough. It\u2019s time to increase your rates.<\/p>\n\n\n\n<p>If you have been working with a client for more than a year, it\u2019s time to increase their rate.<\/p>\n\n\n\n<p>I don\u2019t believe in raising rates often &#8211; once a year suffices, unless the scope of work you are doing for a client changes &#8211; but to keep status quo, you can still raise rates once a year for no reason at all.<\/p>\n\n\n\n<p>Which leads into my next point.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4 &#8211; Explaining Rate Changes to VA Clients<\/h3>\n\n\n\n<p>One of the reasons that VAs don\u2019t like to raise their rates is that they feel the need to explain why the rate is changing to their clients.<\/p>\n\n\n\n<p>In business, you don\u2019t need to explain things as much as you think you do.<\/p>\n\n\n\n<p>I always say it\u2019s a woman problem, because that\u2019s how I see it.<\/p>\n\n\n\n<p>Men don\u2019t overthink things in business, for the most part.<\/p>\n\n\n\n<p>If there is an increase needed, they\u2019ll just do it.<\/p>\n\n\n\n<p>Women seem to have to convince people that there is a very good reason for something before doing it.<\/p>\n\n\n\n<p>We put a lot more thought into everything, but especially money.<\/p>\n\n\n\n<p>And for sure, lots of Virtual Assistants do not like to talk about money.<\/p>\n\n\n\n<p>I remember doing all kinds of sales conversations early in my VA journey, and being scared to ask for the sale at the end of the call.<\/p>\n\n\n\n<p>I gave up so many clients because I couldn\u2019t simply ask them if what we discussed made sense to them and if they wanted to start working together.<\/p>\n\n\n\n<p>Instead, I would end my calls with \u2018I\u2019ll put together a proposal and get that to you.\u2019 Totally avoided the money conversation.<\/p>\n\n\n\n<p>The client would then get the proposal, make their decision without even another conversation with me, and then I would not get the client.<\/p>\n\n\n\n<p>You have to be able to talk about money with your clients. But you have to do it in a way that is comfortable for you.<\/p>\n\n\n\n<p>When I changed the way I did my sales conversations &#8211; guess what? I got clients.<\/p>\n\n\n\n<p>What I do now is what I teach VAs like you to do &#8211; talk about the client\u2019s needs &#8211; ask them questions about what they need help with, what is important to them to get help with &#8211; and then ask them what their budget is.<\/p>\n\n\n\n<p>It makes the conversation about money easier for both of you.<\/p>\n\n\n\n<p>The client has a budget they are willing to spend. You can let them know what they can get done within that budget based on your rates. Easy.<\/p>\n\n\n\n<p>You\u2019re not trying to sell a client anything. If you are, then you will probably struggle.<\/p>\n\n\n\n<p>Be upfront and talk about it right from the start.<\/p>\n\n\n\n<p>And then when it\u2019s time raise rates, don\u2019t explain why they need to go up. It\u2019s just business. You just need to inform them with a reasonable amount of notice that the rate is going to change.<\/p>\n\n\n\n<p>When I work with VAs to increase their rates, we start with new clients at a new rate. That\u2019s easy. Then we assess the current clients and decide how to increase them &#8211; especially if you have been working with them for a while and you haven\u2019t raised their rates.<\/p>\n\n\n\n<p>Big rate increases can be challenging, but it is easy to do it professionally. I can help make it easier.<\/p>\n\n\n\n<p>The last thing I\u2019ll talk about today regarding rates is packages.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5 &#8211; Creating Packages<\/h3>\n\n\n\n<p>So many VAs think that they \u2018just need to create packages\u2019 and that will solve all their business problems.<\/p>\n\n\n\n<p>They think once they have packages they can stop tracking their time (you can\u2019t).<\/p>\n\n\n\n<p>They think once they have packages they will make more money (not necessarily)<\/p>\n\n\n\n<p>They think once they have packages they won\u2019t have to talk about money with their clients (you still will).<\/p>\n\n\n\n<p>Packages can be a great idea, but you have to create them for the right reasons.<\/p>\n\n\n\n<p>You create packages so you can offer a specific set of services to clients.<\/p>\n\n\n\n<p>You create packages so you can simplify your billing.<\/p>\n\n\n\n<p>You create packages so you can offer tiers of services (usually 3).<\/p>\n\n\n\n<p>You don\u2019t create packages so you don\u2019t have to track your time anymore or avoid money conversations with clients.<\/p>\n\n\n\n<p>In fact you will have more money conversations with clients because they will want to know what they get for the package, and how it works. A lot of clients are conditioned to pay VAs by the hour.<\/p>\n\n\n\n<p>You will also need to keep tracking your time to make sure that you aren\u2019t giving your time away by not working efficiently.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">There you have it, 5 mistakes that Virtual Assistants make with setting rates.<\/h3>\n\n\n\n<p>If you are making any of these mistakes, the good news is they are easily fixable.<\/p>\n\n\n\n<p>When you start by doing the math, you know WHY your rates are set where they are, and you will be able to see the impact of discounting or not charging enough.<\/p>\n\n\n\n<p>It\u2019s not difficult to do, and it\u2019s a great exercise if you have never done it. You can pick up my rate calculation package at my website. I\u2019ll drop the link in the show notes for this episode for you.<\/p>\n\n\n\n<p>Pick up your Rate Calculation Package here:<\/p>\n\n\n\n<p><a href=\"https:\/\/www.yourvamentor.com\/rate-calculation-package\/\">Rate Calculation Package<\/a><\/p>\n\n\n\n<p>And let\u2019s circle back to today\u2019s quote Quote: Don&#8217;t fall into the irresponsible trap of setting low prices. It will kill your business cold. Low prices attract cheap customers with luxurious demands.<\/p>\n\n\n\n<p>When you work with clients who are paying low rates, they are often high maintenance. Especially because if you negotiate a lower rate with them, it\u2019s often their \u2018highest\u2019, which means that it might be a lot for them and they will quite often be very aware of that. It can make doing their work a challenge if they are always second guessing how you spend your time and their money.<\/p>\n\n\n\n<p>If you have worked with someone like this you know exactly what I mean.<\/p>\n\n\n\n<p>Find clients who say YES to your rates, your proper rates, and who value you and your work, and happily pay for it.<\/p>\n\n\n\n<p>That will rarely be the low paying clients. Set your rates where they need to be, change them when necessary, and keep your business vibrant and profitable!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do You Need Help?<\/h3>\n\n\n\n<p>\u200cIf you need help setting your rates properly for your VA business, be sure to get in touch with me. I\u2019m here to help.<\/p>\n\n\n\n<p>It\u2019s the only reason I\u2019m here at all, as you know. To help you become a ridiculously good VA.<\/p>\n\n\n\n<p>I have helped hundreds of VAs who are stuck get moving. I&#8217;d love to do the same for you.<\/p>\n\n\n\n<p>We can work together privately, or in The Virtual Circle, my monthly mastermind group, or in my Plan to Profit group coaching program, or you can enroll in some of my self study trainings. I have lots of options to move your forward. Check them out in the show notes for this episode. Thanks for tuning in this week! I\u2019ll see you next time!<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u200cWhat You Need to Do Next:<\/h3>\n\n\n\n<p>Let&#8217;s work together privately to get you to your really big goal. It&#8217;s the fastest way to get results and we can start right away. <a href=\"https:\/\/yourvamentor.com\/services\">Learn more about private coaching here<\/a>. <\/p>\n\n\n\n<p>The Virtual Circle (TVC) is a monthly mastermind group for Virtual Assistants just like you. We get together 3 times a month for group Zoom sessions to talk about what you are struggling with, working on, or celebrating. It&#8217;s a close knit community of your VA colleagues that provides the best kind of support for your VA business. <a href=\"https:\/\/yourvamentor.com\/tvc\">Learn more about TVC here<\/a>.<\/p>\n\n\n\n<p>My self study program Getting Started as a VA can help you get your VA business started easily and quickly too. You can sign up right away and be on your way to getting clients by the end of the program, with all the right foundations in place. <a href=\"https:\/\/getstartedva.com\">Check out the program here.<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.yourvamentor.com\/blog\/category\/productivity\/\">Click here for more tips<\/a> to help you with your productivity and time management in your Virtual Assistant business.<\/p>\n\n\n\n<p>Reach out to me if you need to talk about where you are stuck and what the right option might be to get you moving. It\u2019s literally all I\u2019m here to do is help you get to where you want to go. <a href=\"https:\/\/yourvamentor.com\/15-min\">Book a complimentary Cut to the Chase call with me here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Welcome to another episode of the podcast that teaches you how to be a ridiculously good virtual assistant. Today I want to talk about rates. It\u2019s a common topic of discussion with VAs at all levels of their business &#8211; and we all struggle with it at times. Today&#8217;s Quote: Don&#8217;t fall into the irresponsible&hellip;&nbsp;<a href=\"https:\/\/www.yourvamentor.com\/blog\/2024\/01\/podcast-mistakes-virtual-assistants-make-setting-rates\/\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">Podcast: Mistakes Virtual Assistants Make Setting Rates<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[240,56],"tags":[241,257,223],"class_list":["post-3896","post","type-post","status-publish","format-standard","hentry","category-podcast","category-service-offerings","tag-podcast","tag-raising-your-virtual-assistant-rates","tag-setting-your-virtual-assistant-rates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Podcast: Mistakes Virtual Assistants Make Setting Rates<\/title>\n<meta name=\"description\" content=\"Virtual Assistants make mistakes with rates more often than anything else in their business. In this episode, we talk about the most common ones and how to fix them.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.yourvamentor.com\/blog\/2024\/01\/podcast-mistakes-virtual-assistants-make-setting-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Podcast: Mistakes Virtual Assistants Make Setting Rates\" \/>\n<meta property=\"og:description\" content=\"Virtual Assistants make mistakes with rates more often than anything else in their business. 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