VA Basics - Should I Offer Packages Or An Hourly Rate?
When you’re offering services as a health virtual assistant, one decision you need to make is how to price yourself. This doesn’t just come down to what your price is, but also how you charge it. And in the majority of cases, it will be one of two options: hourly rate or package rate.
But how do you know which is best for you? Let me break it down for you so you can make an informed decision.
Should I Offer Packages Or An Hourly Rate?
Charging an hourly rate
This is exactly what it sounds like – you have a set price per hour that you charge people. This can also incorporate a package of hours (which gets a bit confusing, I know!) But basically, even if you’re charging $X per hour in 5 or 10 hour packages, it’s still considered an hourly rate.
The pros
Hourly rates are a common and familiar way of charging – pretty much every person on the planet is familiar with this form of pricing, whether it’s how they were paid as a teen at the supermarket or what they’ve paid for VAs previously. So there is little confusion around how it works on the client’s side of things.
It is great for your own accountability – some VAs actually prefer this form of pricing because it helps keep them on track. If you’re someone who tends to procrastinate or get distracted while working, having to track your client hours may work in your favour to keep you on task.
You get paid your rate for your time no matter what – assuming your client doesn’t try to do a dodgy and refuse to pay your invoices, you’re getting paid for the time you put in.
There’s greater flexibility – some tasks take longer than others, and some days are better than others. An hourly rate helps to build flexibility in for these sorts of factors.
You have a reduced risk of scope-creep – a lot of clients like to add tasks, whether it’s consciously done or not! But when you’re charging an hourly rate, they will get charged for the time it takes to do these additional tasks. So there’s less chance of you doing extra work that you’re not adequately compensated for.
The cons
People can get annoyed at the time variance for tasks – I know, it’s a bit irritating considering we are often doing things far quicker than they could! But if it takes you 60 minutes to write a blog one week and 90 minutes the next, your client may get frustrated at the difference.
Clients may expect you to be faster – again, clients are really good at thinking they know how long something should take… but that’s not necessarily accurate. An hourly rate puts the pressure on you to do things faster, even if that’s not the best idea for what you’re doing.
It limits your income potential – there are only so many hours in a day. And very few VAs are doing this as a full-time gig! So you will end up limited in how much you can earn simply based on this fact.
You get penalized for being more efficient – when you get better at doing your job, you get paid less for doing it. In my books, you should be getting paid better for being more awesome and efficient!
Charging a package rate
Again, the name says it all – you are charging a rate for your services that is a set amount. The amount of time it takes is irrelevant (at least to the client) because no matter what, they are only charged the set amount to get the outcome they are after.
The pros
Packages are upfront and easy to understand – the client knows from the start what it will cost them and what it will include. So they don’t need to try and estimate whether or not they can afford it!
You can always charge an extra fee for any additional work – extra tasks will often creep in. You can simply build into your packages that you will charge either a set rate or an hourly rate for anything that is not within the package.
It can reduce the limit on potential income – this benefit is two-fold. Firstly, you can be making a higher per-hour rate because your client doesn’t need to know how quickly you’re completing tasks. And secondly, because you’re not getting penalized when you become more efficient, your income potential will increase as you free up more time!
No one hovers over you expecting you to be more efficient – this can be a big one if you struggle with feeling pressured by clients around your time. As long as you are delivering your package inclusions, no one will be watching and calculating how long it takes to do so (except for you!)
The cons
There can be less flexibility – when you deliver packages, there is less flexibility in what you have to offer. Or if you end up creating too many packages, it can lead to overwhelm. So you really need to know what you love to offer AND what your clients benefit from the most.
Clients may prefer a different set of inclusions – this is similar to the previous point, but from the client point of view. Not everyone will want the packages you have on offer. So it’s up to you to figure out if you want to create a custom package for them, or if you simply aren’t a good fit for their needs.
It requires trust that you will deliver the value – because the price of a package will be higher overall than a per hour rate, it has a higher perceived value (even if it’s the same as what you’d quote as a per hour job!) So your clients need to have a higher level of trust that you can deliver on that package. This is where your reputation and word-of-mouth from other clients will need to support you.
If you underestimate your time, it could lead to burnout – packages need to be built with your time commitment in mind. So if you’re not sure on how long something takes, your pricing may not be sufficient for what you’re offering. If you want to offer packages but don’t know the time you’ll need, it’s best to offer a short-term package to a couple of people to allow for adjustments and minimise your risk of burnout long-term.
So what’s the answer?
Like anything in business, it really comes down to you and what is most important for you! Your biz structure, your confidence, your ability to estimate timeframes, your services – all of these will influence which is best for you.
But the best news? If you choose one option and find that it’s not right for you, you get to choose again! This is your business, and you get to make all of the calls around how it is run. So don’t feel overwhelmed or pressured by the decision – it can always be revised in future.
Wondering if you have what it takes to start working as a health virtual assistant?
If you love the idea of:
Building a thriving biz as a health virtual assistant
Making money from the comfort of your home, your bed, your favourite cafe or even a tropical island resort (wherever you like, really!)
Pricing yourself in that sweet spot of client-friendly but not hitting burnout
Standing out from the crowd so you can work with the people you admire the most
Having the freedom to live your life and not be glued to your work 24/7...
then 𝗧𝗵𝗲 𝗨𝗹𝘁𝗶𝗺𝗮𝘁𝗲 𝗚𝘂𝗶𝗱𝗲 𝗧𝗼 𝗕𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝗔 𝗥𝗼𝗰𝗸𝘀𝘁𝗮𝗿 𝗛𝗲𝗮𝗹𝘁𝗵 𝗩𝗔 is what you want to get your hot lil hands on!
In this FREE guide, I share exactly what you need to land your first paying clients as a health VA.
