Archive for February 8th, 2012

Dear Danielle: How Much Should I Charge This Client?

Dear Danielle:

I have a potential client I am having discussions with right now. He projects giving me various tasks requiring from basic assistance up to project management skills involving analysis and online business management. I have been asked to quote one rate per hour regardless of the complexity of the task involved. I have also listened to your recording of charging value added pricing which makes sense to me. Ordinarily I charge £25 per hour for basic VA services up to £65 per hour for more complex tasks inclusive of research, marketing and analytical tasks. This potential client operates internationally. How much would you charge based on value added pricing? I would truly appreciate your help in this. Thanks and regards —LG

Thanks for the question. 🙂

Unfortunately, due to antitrust laws, I can’t tell you what to charge. That’s really something you have to come up with on your own according to how you value yourself and what your business needs.

I will say though that anytime you start itemizing individual, line-item tasks and assigning a hierarchy of importance, it has the effect of commoditizing yourself and what you offer.

That’s not something you want to do in your business because it comes around and bites you in the rear when you need for clients to understand that the value isn’t in the tasks, it’s in how the tasks help them move forward in their business and what those tasks allow them to accomplish or gain or achieve.

When you understand that perspective, you see that there’s no reason to itemize or value one task as more or less important–they are ALL important to the big picture of the client’s business.

If you haven’t yet, be sure and download our Pricing Calculator and go through those exercises.

This will help you get clarity around what you need and want to earn in your business. Base your decisions around that, not bending over backwards to customize your entire billing structure and business operations for one client. The tail will forever be wagging the dog otherwise (that is, the business and clients running you, instead of properly the other way around). You’ll never build an ideal practice that way.