Start-up virtual assistants frequently think that to get their first customer they need to offer a low-cost get in the door price. Some actually consider they're going to find work by offering their services for free. But is this a wise approach?
Let's have a look at what outcomes offering a free or below-cost service have on a virtual administration business.
From the virtual assistant's viewpoint, they believe that offering a free or low-cost service is going to get them their first customer. Once ‘in', they're able to demonstrate how good they are by producing some good work so they anticipate that the prospect will use them again, become a regular client and/or refer them to their contacts.
But this isn't the way a potential client looks at it. Of course, cost is a consideration, however its not the only focus.
The prospect treasures his own and takes care that things are all executed appropriately so he can present a proficient to his clients. So, he needs his virtual assistant to value his business as much if not more than he is doing. When a va provides work for free or below cost, then it gives the subliminal message that they are not worth much and aren't likely to really care very much about themselves, or their own VA business so would (wrongly or rightly) think that they are not going to appreciate their business either.
Should you fix your value too low, then the anticipation is also set that the service can't likely be very good. Folk logically perceive cheap prices means cheap/low quality and similarly, expensive charges one high class. For example M&S and Primark both sell clothes at different ends of the price scale. You anticipate Primark clothes to fade after one wash, however, if you purchased it from M&S, you would be taking it back for a refund.
Establishing a low rate initially causes it to be quite challenging to then increase the price at a later stage. You risk losing that client. Customers who like low prices don't want to pay much more, so you fall into a cycle of having to find new clients when you attempt to raise the prices. Clients who have got gotten accustomed to your bargain prices, really don't value you, therefore they don't value being committed and will easily look again to find the next low-cost virtual assistant who they are able to treat will equal disrespect.
On the other hand, should you go in with a high price and then provide an exceptional service, customers value you and would like to keep you and will naturally sing your praises.
It is much better to have a few good clients who will be have agreed to pay you a good to high rate for your services who value and rave about you, than to have 12 poor paying clients who do not respect you or your business and would likely find an alternative.
The truth is that like attracts like, therefore value yourself and your business by charging a decent rate and you will then attract customers who will value you. There'll always be clients prepared to abuse those working for reduced rates, just as there will be prospects who will be prepared to pay good rates for good quality work. Who would you rather attract?
Let's have a look at what outcomes offering a free or below-cost service have on a virtual administration business.
From the virtual assistant's viewpoint, they believe that offering a free or low-cost service is going to get them their first customer. Once ‘in', they're able to demonstrate how good they are by producing some good work so they anticipate that the prospect will use them again, become a regular client and/or refer them to their contacts.
But this isn't the way a potential client looks at it. Of course, cost is a consideration, however its not the only focus.
The prospect treasures his own and takes care that things are all executed appropriately so he can present a proficient to his clients. So, he needs his virtual assistant to value his business as much if not more than he is doing. When a va provides work for free or below cost, then it gives the subliminal message that they are not worth much and aren't likely to really care very much about themselves, or their own VA business so would (wrongly or rightly) think that they are not going to appreciate their business either.
Should you fix your value too low, then the anticipation is also set that the service can't likely be very good. Folk logically perceive cheap prices means cheap/low quality and similarly, expensive charges one high class. For example M&S and Primark both sell clothes at different ends of the price scale. You anticipate Primark clothes to fade after one wash, however, if you purchased it from M&S, you would be taking it back for a refund.
Establishing a low rate initially causes it to be quite challenging to then increase the price at a later stage. You risk losing that client. Customers who like low prices don't want to pay much more, so you fall into a cycle of having to find new clients when you attempt to raise the prices. Clients who have got gotten accustomed to your bargain prices, really don't value you, therefore they don't value being committed and will easily look again to find the next low-cost virtual assistant who they are able to treat will equal disrespect.
On the other hand, should you go in with a high price and then provide an exceptional service, customers value you and would like to keep you and will naturally sing your praises.
It is much better to have a few good clients who will be have agreed to pay you a good to high rate for your services who value and rave about you, than to have 12 poor paying clients who do not respect you or your business and would likely find an alternative.
The truth is that like attracts like, therefore value yourself and your business by charging a decent rate and you will then attract customers who will value you. There'll always be clients prepared to abuse those working for reduced rates, just as there will be prospects who will be prepared to pay good rates for good quality work. Who would you rather attract?