Underpriced services - Is this you?

Discuss web design, copywriting, SEO, traffic, advertising techniques and other aspects of developing a successful business.

Underpriced services - Is this you?

Postby Mel on Wed Jul 02, 2008 1:09 pm

In the beginning when trying to start a new business, many people tend to under price their services. I did this when I first started my VA business and found it was tough to pull myself out of that set price bracket.

Has anyone else fell into this trap and if so, how did you pull yourself out?
Melody

Want to be a VA? Let me show you how! VirtualBusinessMavens.com
Essential Office Support: Helping you manage, market and grow your business.
User avatar
Mel
General Manager
 
Posts: 540
Joined: Tue Dec 21, 2004 10:17 pm
Location: Tennessee

Postby LorettaOliver on Thu Jul 03, 2008 2:40 pm

*raises hand*

I was charging $10 per hour for the past year or so. Then after having many, many, MANY great friends and clients tell me, "You are not charging enough for your time, you do a lot in an hour and you deserve a good pay rate." I raised my prices about a month or so ago. The results have been well received.

Focusing on the WAHM market makes pricing hard. You're working with other people in your same situation, and sometimes even friends, and you don't want to overcharge, and you don't want to undercharge and it just turns into this horrible trap of wondering if your price is the right amount. I want to help those starting out as much as I can and I offer bartering and other options,

I'm still on the lower end of the pay scale I think... I don't want to be too high since I'm focusing on small business WAHMs. I hope I'm not underpriced anymore.

Setting your prices too low definitely does limit you in a lot of ways. As does setting them too high. My new outlook is that prices can always be negotiated down by a new client, but you negotiate up! Negotiation and price discussion is a wonderful thing.
Image
Product Review PLR ~ Our PLR Reviews make it EASY for you to add these to your website while making more affiliate sales!
Go from Beginner to Blogger in just 4 weeks!
User avatar
LorettaOliver
Admin Support
 
Posts: 1145
Joined: Thu Nov 01, 2007 5:42 pm
Location: Newport News, Virginia

Postby Mel on Tue Jul 15, 2008 2:27 pm

It's much easier to agree to a discounted rate than it is to convince clients to accept that you're raising your rates. I'm not saying price your services at $50 and negotiate down because obviously, you might scare your potential customers away... BUT I do think having them a reasonable rate for what you offer and who you market to, or even a few buck higher than average is ok because then you have some negotiating room without cutting your own throat.

I also think that reasonably raising your rates every few years is ok too. Client should expect an increase occasionally because you acquire more skills and knowledge. Of course, I think they should offer it without you always having to ask, but.... :wink:
Melody

Want to be a VA? Let me show you how! VirtualBusinessMavens.com
Essential Office Support: Helping you manage, market and grow your business.
User avatar
Mel
General Manager
 
Posts: 540
Joined: Tue Dec 21, 2004 10:17 pm
Location: Tennessee

Postby busymomma on Wed Aug 20, 2008 4:28 am

Stepping into online pricing has been easier for me than most. I charge upwards of $60 an hour for my personal training services at the gym. I'm not coming home for cheap when I can go to the gym and really work hard at snagging a new client. Yes, i want to be at home more though. ;)

But I'm one of the many friends that hit Loretta upside the head over and over again. She's worth it. OUR TIME IS WORTH IT. If they didn't need our help then they would do it themselves.

I won't work for less than $20 an hour and that is very low, still too low I feel, but that is on retainer and a monthly subscription that does NOT carry over month to month.

I always remind myself that things take me minutes to do and hours for my clients. So I'm very inexpensive by just taking a few minutes to finish something for them.
Val


Easy WAHM Websites
Pre-made websites, virtual assistance, blog management.

Busy Momma Wellness
Make you a priority!
busymomma
New to Internet Based Moms
 
Posts: 26
Joined: Wed May 28, 2008 11:20 am
Location: Seattle area

Postby Nell Taliercio on Sun Sep 14, 2008 5:33 pm

I don't feel I was under priced in the beginning. My skills and experience were slim to none. Once I got skills and experience I began upping my rates. One thing I have noticed is over pricing rates lately. If you are worth a high rate then charge it...but if you aren't then don't....get the skills and experience that warrants a high rate and begin to up your rates. I know this likely isn't a popular theory so please don't rip me a new one. :lol:
Nell Taliercio
Legit Jobs From Home
http://www.justonlinejobs.com
User avatar
Nell Taliercio
Moderator
 
Posts: 133
Joined: Fri Jun 08, 2007 12:50 pm

Postby busymomma on Sun Sep 14, 2008 5:52 pm

So true Nell. I tried my hand at transcription and lowered the rates that I've found around drastically. So glad I did. It is not for me. They got their stuff, but not in a timely manner. :lol: I found myself listening to the audio more than I was typing. So I did get a little payment for my time, but I did not take advantage of the client while learning.

I guess if the rates are being charged then testimonial pages and recommendations should be in order. Something clients should be looking for and something I need to go put up on my sites. :roll:
Val


Easy WAHM Websites
Pre-made websites, virtual assistance, blog management.

Busy Momma Wellness
Make you a priority!
busymomma
New to Internet Based Moms
 
Posts: 26
Joined: Wed May 28, 2008 11:20 am
Location: Seattle area

Postby soapin'Angela on Sun Sep 14, 2008 11:36 pm

Great thread! I would say I've been all over the pay-rate spectrum.

I started with a special at Mom Masterminds of $50 for 10 hours. Got myself about 11 clients really quick and so had about 110 hours at $5 per hour to complete!

Then from that $5 I picked a rate of $15/hr. I would say I was still learning but I did have a lot of website design and internet marketing experience so I felt I needed to raise my rates.

Then I went to $17 for a while.

Then I figured at a $2 or $3 raise every few months it would take me forever to get to a decent rate so I went up to $25. I was prepared that I would lose clients at this point.

Then I went to $75 as an internet marketing manager. That worked out a little, I got a couple of clients but I just wasn't comfortable enough at that rate so then I went back down to $45 and that's where I've been for getting close to a year now.

At my bigger jumps in rates ($17 to $25, $25 to $75) I lost pretty much all my clients and had to start over each time.
Fire Up Your Affiliate Program - FREE Teleseminar!
http://www.affiliatecommotion.com/2
User avatar
soapin'Angela
*Super Supportive Mom & Great Friend*
 
Posts: 296
Joined: Thu May 20, 2004 2:24 pm
Location: Ontario

Postby busymomma on Mon Sep 15, 2008 12:35 am

Thanks for posting Angela. I think my last jump may have been a little too high as well. Not positive, but I need to evaluate of course as every day is a learning experience. :lol:
Val


Easy WAHM Websites
Pre-made websites, virtual assistance, blog management.

Busy Momma Wellness
Make you a priority!
busymomma
New to Internet Based Moms
 
Posts: 26
Joined: Wed May 28, 2008 11:20 am
Location: Seattle area

Postby LorettaOliver on Wed Sep 17, 2008 6:00 am

Since we're talking pricing, I'm curious what everyone is feeling with the economy slump happening. Do you feel like you should offer discounts or specials, or avoid raising rates on certain things, or do you feel the opposite about it?
Image
Product Review PLR ~ Our PLR Reviews make it EASY for you to add these to your website while making more affiliate sales!
Go from Beginner to Blogger in just 4 weeks!
User avatar
LorettaOliver
Admin Support
 
Posts: 1145
Joined: Thu Nov 01, 2007 5:42 pm
Location: Newport News, Virginia

Postby Kit on Wed Sep 17, 2008 7:28 am

I've been thinking about that too. For now, I'm not making any changes based on the economy.
User avatar
Kit
Admin Support
 
Posts: 414
Joined: Wed Jul 12, 2006 7:19 am

Postby Mel on Wed Sep 17, 2008 4:35 pm

Nell Taliercio wrote:One thing I have noticed is over pricing rates lately. If you are worth a high rate then charge it...but if you aren't then don't....get the skills and experience that warrants a high rate and begin to up your rates. I know this likely isn't a popular theory so please don't rip me a new one. :lol:


I've seen this too and I always wonder if they ever get any clients. I agree that when you're first starting out and have limited skills that you should start at a lower rate until you've built up your experience & skills. However, I don't think you should stay in that low-rate bracket too long because it'll be hard to pull yourself out of. So ultimately, get yourself going and then jump in and start learning things that can help boost your skillset & rate.

As for the economy... I'm not seeing a slump from it, in fact, I've just added more work to my plate. I offer a pretty good discount on retainers though so I don't offer any others.
Melody

Want to be a VA? Let me show you how! VirtualBusinessMavens.com
Essential Office Support: Helping you manage, market and grow your business.
User avatar
Mel
General Manager
 
Posts: 540
Joined: Tue Dec 21, 2004 10:17 pm
Location: Tennessee

Postby Nell Taliercio on Thu Oct 09, 2008 11:28 am

I agree with Mel. Don't stay "low" long. If you're worth more then charge it. Don't be afraid of it. I have started offering SEO services and thought about starting out lower than I am but realized I really am worth the rate with my experience and education in this area. I'm probably worth more actually :lol:

And I'd say $45.00 per hour is a nice hourly rate, Angela. I'm droooooling over here. And I remember that special offer you made on MM...I believe I was one of the clients wasn't I? lol That was insane but it did jump start your VA career. You're a very smart VA and worth what you charge.
Nell Taliercio
Legit Jobs From Home
http://www.justonlinejobs.com
User avatar
Nell Taliercio
Moderator
 
Posts: 133
Joined: Fri Jun 08, 2007 12:50 pm


Return to Websites, Traffic, and Business Development

Who is online

Users browsing this forum: No registered users and 7 guests

cron