Asking for more money can be intimidating! That uncomfortable feeling often holds us back from asking for more money. I mean, who likes paying more for stuff or services? Especially in today’s economy, it seems like every time you visit the grocery store you spend WAY more for less.
This post is all about How To Raise Prices Without Losing Clients. Read more to learn how to ask your clients for more money gently!
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At one point or another, you’ll start to feel like the amount of work you are accomplishing is above and beyond the pay rate you are receiving due to your increase in experience, and amount of time in the industry.
So how do you ask for a raise?
Whether your clients pay you hourly or on a retainer basis for your Virtual Assistant services today I’m sharing strategies on How to raise prices without losing clients. Plus, I’ll share an email example that you can use to send to your clients.
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This post shares strategies on How to Raise Prices Without Losing Clients as a Virtual Assistant.
Why should I raise my rates?
When first starting out as a VA, you were likely intimidated by asking for money and negotiating with clients. You were also probably more than willing to work for less than your worth because you wanted to break into the industry and work from home as a Mommy VA with your kids.
And this is great! You dared to say yes, to get your dream life in gear!
I personally started working as a VA for $10 per hour which is crazy to think back on now, but I am really glad I took the leap of faith because that first client taught me so much and I wouldn’t be where I am today if I hadn’t accepted this offer.
But there comes a time when you’ll have amassed knowledge on a wide variety of systems, have strategies for dealing with a range of issues, and be confident in the services that you provide. Which will mean that you will want to increase your Virtual Assistant rates.
Everyone comes to this point in their own time, trust me, you will get there too!
So here you are left wondering how to raise your prices without losing clients. The first question you might be wondering is…
What is a reasonable price increase percentage?
Great question!
As a Virtual Assistant, you more than likely bill your clients by the hour, using a retainer model, or a combination of both.
You can read more about pricing models here:
Determining how much to increase your rates can come in a variety of different forms. You can start by looking at your competitors. How much are they charging for similar services? What value do they provide that allows them to charge a premium for their services? Are there any skills that you need to improve upon so that you can also charge a premium?
Consider the inflation rate. According to PK Bookkeeping Solutions, a good rule of thumb is to increase your prices by 5-10% yearly to keep your earnings the same year after year.
You can read more about PK Bookkeeping Solutions advice on raising your rates here: (https://pkbookkeeping.co.uk/how-much-you-should-raise-your-prices-and-how-to-do-it)
Consider your overall business expenses. How much are you spending every month to run your business? What are the costs associated with each client? Does your hourly or retainer rate sufficiently cover these expenses?
And finally, what do you NEED to be earning to live and work comfortably as a Virtual Assistant? Consider setting a minimum income goal and a ‘would be nice’ income goal that you can work towards in the future as you continue to gain experience, knowledge and authority in your niche.
Once you have determined how much you would like to increase your prices, it’s now time to consider how you will tell your current clients.
Most of us are uncomfortable having ‘difficult’ conversations over the phone with our clients, and would prefer to send them an email. I actually think in this situation sending out an email is ideal, this way you have a paper trail if ever in the future you need to go back and reference said conversation for any reason, legal or otherwise. We often hear, and remember different parts of conversations differently and so it’s nice to have something in writing that you can reference if needed.
Here’s a short sample email to inform clients of a price increase
Hi [First Name],
I hope you’re doing well! I wanted to personally inform you that, effective (insert date), the pricing for my Virtual Assistant services will be increasing to (insert dollar amount).
This adjustment is in line with the rising demand for my services and the value I continue to deliver. Over the past few months, I’ve expanded my skill set, streamlined processes, and invested in tools that allow me to provide even more efficient and high-quality results for my clients.
Any projects we’ve already discussed or are in progress will continue at the current rate until their completion. My goal is to ensure a smooth transition and continue offering the same level of personalized support you’ve come to rely on.
If you have any questions, feel free to reach out. I appreciate your understanding and continued partnership!
Best, [Your Name]
See how easy that was?
There are a few things I would like to note in the above email, and why I think it is effective. First, you are making it clear that by x date your pricing will increase. I would give your clients a few month’s notice, this way they will know way ahead of time of the change and can get ready financially, and mentally.
You also want to be very clear about how much you are increasing your pricing, by including the dollar amount in your email. Once your client has agreed to the increase, you will want to review your existing contract and have your client sign a new contract or an addendum to reflect your price increase and outline any other additional services you will be providing if any.
PRO TIP: Always consult a lawyer/attorney for any contractual or legal advice.
Finally, you always want to highlight why it’s in the best interest for your client to keep working with you, regardless of the price increase. Make sure to highlight some of the benefits you are providing your clients like additional skills, tools and results that are specific to them.
Will I lose clients?
I mean possibly, but the client who truly appreciates you and values the work that you’re bringing to their business will understand why you need to increase your prices. They understand that with the growth of your business, you will have invested in additional tools, sharpened your skills and maybe offered additional services they can benefit from.
The fact of the matter is, those who decide to step away from your services due to a price increase, were probably on their way out anyway. Oftentimes they are the ones who hire the cheapest labor and then wonder why things are only getting half done or not done at all.
So even if you lose a client or two due to a price increase, think of it as an opportunity to find your ideal client one who will appreciate you and want to work with you for years to come.
To summarize this post, if you are upfront, honest and provide your clients with as much advance notice as possible, you will be pleasantly surprised at how willing clients are to pay additional dollars to keep you around. Remember, you bring LOTS of value to their business by helping them save time, so that they in turn can focus on the money making aspects of their business and, you are already trained in their business processes. There’s no way they will want to train someone else all over again. Time is money.
This post was all about How To Raise Prices Without Losing Clients as a Virtual Assistant
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