When it comes to ironing out pricing, this in some cases can be difficult. But I am here to help you figure out your tiers so that you can continue to grow and scale, not worrying about if you are undercharging and overworking yourself.
One key thing to remember is – you are valuable. You are worth it. If you find a client that isn’t receiving what you have to offer at the value you have determined, just make sure you say “Thank you” and move onto the next client.
You are in business to make money – and yes, we all look for the clients to work with, but you need to make sure you are honoring your value.
As Abbey Ashley of The Virtual Savvy says, “I am not a discount service.”
How to Calculate Your Virtual Assistant Rates
Now, let’s discuss more how to calculate those rates. There are some fantastic resources out there that can help you iron this out – but let’s just take a look at a few factors to start the process.
Let’s start simple: Desired Gross Income / # of Hours a month Available to Work = Min. Hourly Rate
From there, you need to factor in paying taxes – which would be safe to calculate 30-35%
So if you needed $4000/month in gross income, with 35 hrs a week, that breaks down to $28.57/hr now; if you were to take the $4000, minus the 35% for taxes, that leaves $2600/month in net income.
Now that we have the math out of the way – the next comes down to figuring out the packages and pricing needed to make that profit as a business owner.
Looking at your services, you need to iron out to achieve your goals and how many clients you can handle, which will help determine your overall needs.
Using the example before, $4000, if you were to break it down to a 20 hr a month package, at the $28.57/hr, that maths out to $571.40. For the sake of ease, your 20hr package could price at $600.
Taking that and $4000/$600 = 6.667 Clients. Well, that isn’t an easy number either, but if you were to take on seven clients a month, at 20 hrs, each would mean 140hrs per month.
This, again, if you use your 35hrs / week number x4 weeks = 140 hours.
Now that we have the numbers calculated – let’s talk about your packages. What should be included, what shouldn’t be.
Your Virtual Assistant Packages
In most packages, you allot 30 mins a week to touch base meetings with your client – to discuss the objectives for that week, needs, etc., from each other to achieve it and cover anything else coming up that might affect the project.
In these packages, you need to determine with your client if particular software is required. This part is where it can get tricky; if you end up purchasing software for multiple clients, you need to decide if you are pricing your package to include that cost or plus a percentage.
General practice should be, you add it to your rate. The software’s price could change, and you need to ensure your client knows where those funds are going. This will ensure that they need to pay if they want their content created (regardless of the service). A bonus insurance policy.
If as you are working with your clients, you need to start thinking about increasing your rates. If you hit that point, then you need to plan for it. Not only to communicate it to your client (typically this is on the anniversary of your contract), but also to plan incase your client cannot adjust with you. This will ensure you have time to open up leads to fill the gap.
Now, this is only the beginning of your path – you will course-correct as you work with clients, adding and removing tasks – adjusting the hours, and pricing along the way.
The key to remember, as mentioned before, know your VALUE. It takes time, training, and experience to grow as a virtual assistant or freelancer. It takes time to grow your reputation. It takes effort to build up your knowledge – honor it.
What other factors would you use to settle on your package pricing? What percentage do you put aside for the government tax portion? I would love to hear in the comments below any other ways you used to create your packages.