As the virtual assistance industry evolves so are the service portfolios being offered by VAs. That is, today’s veteran virtual assistant is much more than a task master; she is an efficiency expert possessing specialized skills and knowledge that enable her clients to do much more than simply “offload” their to-do lists. A good VA does not only free your time, she frees your mind to think, plan and do bigger.
Yet I continue to come across business owners who fully expect virtual assistants to charge less than they do. That somehow the price of administrative, creative, and technical support services is a variable cost rather than an investment in the productivity of their operation.
Let me illustrate my point by way of example:
Joe Business Owner charges $100/hour for his consulting services.
Jane Virtual Assistant charges $55/hour for her marketing support services.
Sally Virtual Assistant charges $35/hour for the same.
Let’s suppose that Jane has more experience and resources at her disposal than Sally and, as such, can get more done in an hour than Sally.
Even so, Joe Business Owner might still draw the conclusion that Jane’s $20 premium ($55/hr versus Sally’s $35/hr) will cut into his margins too much to pay for itself. Essentially, he looks at administrative support as a variable cost because, in his mind, he’s paying out a portion of his $100/hr fee to a VA.
Do you see how Joe’s thinking might be erroneous? Whether Joe hires Jane or Sally, might he be missing the point of outsourcing his marketing support function?
Then again, virtual assistant websites everywhere justify the cost of hiring of VA using the “variable cost model” I outline here. So maybe I’m missing the point.
I’ll leave that for you to contemplate and comment on below. Because I think a lot of business owners-and VAs-are in fact focusing on the wrong things when seeking partnership with one another. In case I’m being too vague, here’s a hint to get you thinking:
What if Joe makes and sells widgets for $10 each?
Second hint: I already eluded to “the point” earlier in this post.
Leave your comments and insights below.
The old fashioned saying “you get what you pay for” comes to mind. Also many business owners do not actually understand what their accounts mean, they simply see a bunch of numbers on a page. When business owners are able to listen, understand and accept information they may become out of business instead of business owners.
I agree that many businesses are struggling to come to terms understanding that specialists are called specialists for a reason.
On the other hand I do see a lot of providers who give the impression of cashing-in on a trend more than providing a rich value-add service. That of course makes it so much harder for people to get clear in their minds that a specialist will “do it better than I can” – thinking, advising, problem solving and of course doing the tasks.
It does seem a dichotomy that when a business person sells their service at $100 per hour they then resent the idea of purchasing a supporting service from another person (not dissimilar to themselves) for any significant cost. It certainly looks like mentality of lack leading to dumb greed.
🙂
Great post!!! I couldn’t agree more….I don’t think a lot of people realize that lower cost does not mean a “true” lower cost.
Example: Let’s say I charge $40/hr and another VA charges only$20/hr. If I complete project in one hour and the other VA takes two hours – the cost is exactly the same.
If Joe hires a VA who helps him sell 10 more widgets than he would have w/out her assistance then the true net profit is much higher than the “perceived” cost to hire a VA.
I’m reminded to 2 handymen I hired when I was a Property Manager. The man with lower rates per hour routinely took more time and frequently had to be called back. Even if it was on their nickel, no one called them except for a wreck with its accompanying stress, damage, and loss. The man with the higher rates had tools, expertise and efficiency. In the long run, he was the the least expensive from
every angle.
At VAnetworking.com, virtual assistants are going to have to press themselves in terms of self-respect about their skills. Our self marketing and presentation often portrays us as ‘bargain’ services. When we aren’t, we need to be acquainted with ourselves enough to stand by being professional.
Great post, I hope people actually learn from this and don’t just discard it. But do not forget there are places you can go to get the best of both worlds.
Key Virtual offers affordable prices with high quality services.
Check out http://www.keyvirtual.tk to get a FREE quote. If any one is not satisfied with our services we will gladly give them their money back. We are that confident.
I hope everyone here finds the help they are looking for in a virtual assistant. Hiring a VA is definitely a great way to go, even if you don’t choose Key Virtual. There are so many benefits of partnering up with a VA, the list continues to expand…