Typing Tips: The discount shopper
If you aspire to be an excellent virtual assistant offering typing services, we’re running a series of tips on how to impress your clients. Keep an eye out every Tuesday in the coming weeks!!!
- The discount shopper
I’m sure you think I’m going to tell you to fire this client on the spot – surprisingly I’m not. I’m going to ask you to weigh up how much hassle they are. On the plus side: You know their work, their accent, how to format everything and you don’t need to do any work to get them as a client. You may well be getting a larger volume of work from them than from other clients.
On the negative side: It’s less than your standard rate. But your standard rate should have an element of prospecting worked into it – the element that pays for you to find and impress new clients, market your business and future-proof it. Unless this client is actively stopping you from seeking out new, higher paying clients, keep them.
What you need to avoid is the discount costing you money though – make sure your “rock bottom rate” is still sustainable for you to outsource the work if necessary and make a small profit.
If offering a discounted rate remember to clearly show it on your invoice!
Make it very clear that it is a ‘Discounted Rate’ or an ‘Introductory Rate’ a ‘Volume Discount’ a Monthly Discount’ etc. This then leaves you room to raise it back to a more profitable level when the time is right.
Good point Caroline, yes we only offer discounted rates for bulk or pre-paid blocks of work as an incentive for the client and cash-flow benefit for ourselves. The plus side is that you have that regular client although at the reduced rate you know you are going to get a good volume to sustain overall.
As I utilise the services of 15 other VAs on an regular basis I need to ensure it isn’t too low that I still have a tiny margin when outsourcing.
Absolutely Heather I didn’t realise how important this was until recently when compiling contractor agreements the clients were reluctant to sign to a fixed fee for two years despite being a lot lower than new clients. I therefore had to advise them of the new fee rate that I was charging and the speed in which they have signed has been shocking!
I am now from this month showing on the invoice the full amount and then adding the discounted rate so they can see the value of what they are getting.
Excellent points – and two good strategies for the letting the client know that they are getting a good deal but only for commitment. I really like the idea of showing the full amount on the invoice with the discounted rate so they can see what great value they are getting. Taking a leaf out of the big supermarket chains’ book – show the customer how much they have spent, and how much they have saved.