By Tina Hilton of Clerical Advantage
First, I put a lot of thought into setting my prices. I set them where they are for specific reasons, time, labor and overhead were all deciding factors. So by lowering my rate, it would cause me to fall short of what I need to be a successful business.
Some may debate that once you’ve obtained the client and shown them the caliber of work you do, then you can raise prices. I don’t know about you, but personally, I would be very unhappy if someone I contracted with did that to me.
It’s like the taxi ride I took to and from the airport over the holidays. Our trip to the airport cost us $50, a cost that was considerably less than what it would have cost for long term parking, even doubled. However, during our 2 1/2 week stay out of state our taxi service changed the rates. Our trip from the airport to our home cost $70! Not only wasn’t I prepared for the additional $20, I felt like I’d been duped. In fact, it’s highly unlikely I’ll use that particular service again. I’m afraid clients would feel exactly the same way if I ‘hooked’ them at a lower rate and increased it dramatically later.
But perhaps the most important reason I don’t underbid my prices on freelance sites is this…I’m worth my rates. I started my virtual assistant business because I felt I could be successful doing the things that I know how to do well. I believed that other professionals could benefit from my experience and expertise. And I was confident that I was worth every penny. And I still feel that way. After all, if I’m not confident in my worth how can I expect a client to be?
No, I’ve never obtained a client through the freelance bidding sites. The majority of my clients have come to me via referrals, either from current clients, former employers, coworkers or individuals that I’ve come in contact with through my work. I realize that my virtual assistant services may not be for everyone. But if you’re a business professional who truly understands the value of your time, you’ll find tremendous value in mine. And I’m just fine with that.
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If you have questions concerning virtual assistance or have an interest in working with a virtual assistant you can contact Tina Hilton or visit her business website for Clerical Advantage.
This is helpful to understand for Virtual Assistants and also freelance artists. Underbidding just to get quick work does two things:
1. Makes it extremely difficult to get repeat business from the same client at your preferred higher rate (like you mentioned).
2. Sets a poor precedent for others in your industry. People who don’t understand the nature of what you do may look to those low, quick bidders and expect your high level of service at their rates. You end up talking about apples and oranges a lot.
I’ve made the mistake of underbidding on some projects to get things flowing. The result was that when I wanted to go to the ends of the Earth for them, I felt slightly resentful that the money didn’t reflect my service.
I don’t lower my service quality no matter what I’ve bid, so the natural result is a feeling that the work isn’t as rewarding as it used to be.
I also feel sorry for those people who post their projects on freelance bidding sites. There are some great freelancers bidding on those projects, but to find one they have to sort through and evaluate a lot of low-priced junk. How are they supposed to tell the difference until they take the risk? How are they supposed to know what a fair rate is? I empathize with them.
That’s also why word-of-mouth marketing is so important to any business.
Can I fit any more concepts in this comment? I just enjoyed your post.
David Billings’s last blog post..Brick and Mortar Booksellers Need to Offer More Than Sales
I heartily agree! I’ve been tempted to lower my rates just to get my foot in the door, but then I realized that I wouldn’t be happy working with someone who places more importance on cost than on quality. The quality of my service is very important to me, and I want the people I work with to recognize that I’m giving them quality and to be appreciative of that quality.
Keep up the good standards, Tina!
=>Donna Caissie, Owner & CV
ExtraOrdinary Assistance & The VA List
I feel if you are being paid your worth, the quality of your work will not suffer. It goes hand-in-hand. If you are a happy camper, you will do excellent work.
It’s the same in the corporate world. An unhappy employee is not very productive.
I have never won any bids or obtain clients at those freelance sites either. Plus, they are more focused on money than quality of service; therefore, they miss out on the intangible value you bring to the table.