Organized Assistant » setting fees

Should I Charge for Travel Time and Expenses?

Janet — Tue, 30 Nov 2010 13:47:16 +0000

As a professional organizer, you probably spent a fair bit of time figuring out how much to charge for your services, whether to bill by the hour or the project, and whether or not to offer free consultations. An equally important decision is whether to bill for the time you spend travelling to your clients' location and any expenses you occur doing so. There are many different ways to approach this, but as a business owner, there's one thing you must always keep in mind:

Time is money!

If you have a fixed service area, it's probably easiest to build your travel time and costs into your regular rates, but if you're willing to drive greater distances, you need to make sure you're still making a reasonable income once you factor in the amount of time you spend on the road, as well as the cost of gas and other expenses related to owning and maintaining your car. You may wish to charge a set amount per mile (or kilometre) and add it to your invoice. You will, of course, need to include this in your agreement with the client. The problem I have with this method is that it is too precise, and it can get complicated if you take a wrong turn or need to run an errand on your way to the client's location. When I was operating my organizing business, I developed a system that ensured I was fairly compensated, without worrying about taking the shortest possible route to my clients' locations so they wouldn't think I was gouging them. Here's how it worked:

Anyone within 45 km (approx. 30 miles) fell within my local service area and did not pay a travel fee. I made a list of the cities and towns that fell within those boundaries.
I also listed the places that fell within 50-74 km (approx. 30-45 miles) and 75-100 km (approx. 45-65 miles) and decided on a set travel charge for each of those areas. If the client was farther away than that, I would refer to job to another organizer who was closer.
I had a higher travel charge for downtown Toronto, which technically fell within 100 km, to cover the inevitable high parking costs and time I'd spend in heavy traffic.

I included all of this information along with my rates on the printed sheet I kept on hand while speaking on the phone with clients, so I could quickly, easily, and confidently tell them how much their travel charge would be. This system worked well for me, but it's not the only option. If you have a different approach, please tell us about it!

What’s New at ProfessionalOrganizers.com

Janet — Tue, 06 Apr 2010 12:53:07 +0000

There have been a number of exciting changes since last year when I blogged about The Comprehensive Training Program for Professional Organizers! I've known about the changes for several weeks, but was waiting for a few details before I could share them with you.

For starters, Jane Woolsey is the new President of ProfessionalOrganizers.com. I know Jane quite well, having had the pleasure of working with her on the National Board of Directors for Professional Organizers in Canada. She is an experienced corporate trainer as well as a Certified Professional Organizer who has been running her organizing business since 2002, so this new role is right up her alley. One of the first things Jane did was to schedule live training programs this spring in Montreal, Toronto, Halifax, Vancouver, and Winnipeg. Every one of the facilitators served on the POC Board with us, so I can tell you right now that they all know their stuff and that you'll be in good hands when you go through the training. Be sure to visit the website for dates and additional details about The Comprehensive Training Program for Professional Organizers. If you think that The Comprehensive Training Program for Professional Organizers is just what you need to kickstart your organizing business but you can't get to any of the scheduled sessions, you'll be happy to know that it's also available as a series of nine one-hour webinars you can access for 60 days from the comfort of your own home. The live sessions and the webinars each include the following three manuals:

Create your Business as a Professional Organizer
Marketing Basics for your Organizing Business
Client Relationship Management and The Practical Approach Manual

If you can't afford the three-day program or the webinar series, don't despair! Each of the manuals may be purchased separately as a Self-Study Guide, or you can save money by purchasing them all at once. Are you an experienced organizer? That's okay – there are Continuing Education Webinars just for you! With topics ranging from basics such as conducting an initial assessment and setting rates, to specialized areas like working with seniors and organizing a gluten-free kitchen – with other webinars on home and office organization as well – there is literally something for everyone. I know that's a lot of news to absorb at once, but there's more – I'm going to be part of the ProfessionalOrganizers.com team as well! I'll be sharing information about new webinars, upcoming training programs, and other news on Twitter, so be sure to follow me, if you're not already.

Book Review: Get Rich Organizing

Janet — Thu, 19 Nov 2009 14:44:44 +0000

There is a ton of information online, including this blog, to help you start or grow a professional organizing business, but spending time researching various topics and sifting through all the search results can be very time-consuming. Even if you have lots of time on your hands, if you don't know that you need to learn about a particular subject, how can you even begin to explore it?

Anne Blumer solves that problem for you with her new book, Get Rich Organizing: The Professional Organizer Survival Guide to Launch, Manage, and Grow a Profitable Business. As a seasoned professional organizer with multiple certifications and founder of the Professional Organizer Training Institute, Anne is certainly qualified to write about this subject! The book contains a wealth of up-to-date information on working in the organizing industry, including certification, membership in industry associations, professional organizer specialties, desired characteristics, and even what's involved in a typical day. In addition, it covers topics that are important for all businesses, such as writing a business plan, setting fees, legal and taxation issues, as well as marketing and branding. That in itself would make this a useful reference, but Anne does not stop there. The second part of the book is devoted to specific aspects of working with clients. Many of the books I've read do not address the organizing process, assuming that you wouldn't become a professional organizer unless you already had organizing skills, but there is a world of difference between organizing for family and friends while you hang out together and organizing for strangers who are paying you good money for your expertise! This book will help to prepare you for a wide range of organizing projects and challenging clients and help you avoid embarrassing or costly mistakes. The thorough information is supplemented by a dozen forms you can adapt as needed for your own business, for needs assessments, letters of agreement, and much more. Most chapters include exercises to encourage you to put the information into practice, and in some cases, the assignment is to prepare a workshop based on the information in the chapter. I especially like this approach, because having material already developed means you'll be able to accept when someone asks you to speak on short notice. Does the title "Get Rich Organizing" put you off? It shouldn't! Sure, running your own organizing business is all about doing what you love, but you won't be in business very long if you're not making money at it. And if you can get rich while you're doing it, wouldn't that be a good thing? I have to admit that I was shocked when I first saw the price of the book, but now that I've read it and seen how packed it is with valuable information and resources, I am confident that it will help you earn back the cover price many times over.

Getting Paid for Your Services

Janet — Tue, 20 Oct 2009 13:36:33 +0000

A reader sent me the following question: There are a decent number of people in my town with good income, but the majority are low income, and I am concerned with getting paid. How do you go about getting a deposit up front? Is there some way to ensure that you get paid for your services?

These are some really important issues! Let's start with the question of the deposit. I highly recommend that you obtain a deposit at the time you book an appointment. When your clients pay a deposit up front, it shows that they are committed to working with you. If the organizing session is booked during an in-person consultation, they can pay you by cash or check. If it is booked by telephone, email, or online, they can pay you by PayPal (see my earlier post, Accepting Credit Cards, for more details). It is not unheard of for clients to cancel on short notice; I've even shown up for appointments only to find that the person who scheduled it was not there. When that happens, it's not likely you'll be able to fill that time slot with other paid work, so it's not unreasonable to expect to be paid for at least part of your time. Whether or not you will reimburse part of the deposit in the event of a cancellation, or apply it to rescheduled appointments, should be clearly outlined in your written agreement with the client. Your agreement should also address when subsequent payments are due – ideally you will be paid at the end of each organizing session – as well as any penalties that will be incurred for late payments. There are a number of sources for sample agreements, including Debra Milne's Become A Professional Organizer Manuals, Alice Winner's Tool Kit For Organizers, The FabJob Guide to Become a Professional Organizer, and Anne Blumer's new book, Get Rich Organizing: The Professional Organizer Survival Guide To Launch, Manage, and Grow a Profitable Business. Whether you use one of their templates or write an agreement of your own, it is best to have it reviewed by a legal professional who knows the laws in your area. Some cities have a small business center where you can meet with a lawyer at a lower cost than if you went directly to a law firm. You should carry a supply of blank agreements with you so that the agreement can be signed at the same time that the deposit is paid. This can also be done online, using EchoSign. This service allows you to upload your prepared agreement and email it to your client, who then signs it electronically. I've been using EchoSign in my virtual assistant business for several months, and I'm quite impressed with how quick and easy it is to use. It is free for up to five agreements per month. The other issue identified by my reader is the fact that many of the people in her area have a low income. This situation can make it tempting to lower your rates, but the harsh reality is that not everyone will be able to afford your services, no matter where you live. If you're not comfortable turning away those who cannot, you may wish to consider offering a limited number of hours per month at a reduced rate, or occasionally volunteering your services to someone in need. Just remember that you are operating a business, not a social service agency, and although you want to help others, if you don't generate a sustainable income, you won't be in business for very long. Established organizers are often approached by newbies looking for a job shadowing or training opportunity. Bringing in such trainees as your assistants at no extra charge to your client can keep the total cost of the organizing project down and make it more affordable for lower income clients. Another option is to offer alternatives to individuals who need organizing help but cannot afford to pay for a professional organizer. This could be in the form of customized organizing plans that your clients can implement on their own, organizing workshops or teleclasses, or information products (your own or someone else's). The benefit of offering teleclasses and/or information products is that it expands your market to people outside your geographic area and provides you with the potential to earn passive income. I'm sure that some of you will have some other suggestions and I welcome your comments. If you have a question of your own, please feel free to submit it at any time.

How Much Should I Charge for Organizing Services?

Janet — Fri, 03 Jul 2009 13:08:29 +0000

One of the hardest decisions you have to make as a professional organizer is how much to charge for your services. The biggest mistake you can make is to base your hourly rate on what you earned in your last job. After all, as an employee, you were paid for every hour you worked, you weren't responsible for covering such expenses as your office furniture or computer, and your employer may have borne the costs of training and health benefits. Furthermore, it wasn't up to you to pay for business cards or other marketing materials!

There are a number of factors to consider when setting your rates, including:

What Services You Offer: Generally speaking, you can charge more for business services than residential. Not only do businesses usually have larger budgets available to them, but they can write off the cost of your services as a taxable expense.
Your Level of Expertise: How much organizing experience do you have? Have you completed any specialized training? Do you hold any certifications? How long have you been in business?
The Going Rate in Your Area: If you reside in a small town, it's probably not realistic to expect that you can charge as much as your colleagues in larger metropolitan areas. Do your homework and know what is realistic. If you charge too much, you may lose business to your competition. Keep in mind, however, that if you charge much less, clients may perceive that the quality of your service is not as good.

Most business start-up guides will provide you with a formula for calculating how much you need to charge to attain your target income. The important thing to remember is that you will not be billing for 100% of your time. As discussed in my post, Can I Run My Organizing Business Part Time?, you need to spend a significant amount of time marketing and managing your business. If you plan to outsource some of these tasks, that's great, but the cost of these services will need to be factored into your rates as well. At the end of the day, not only do you have to be earning a sustainable income, you also have to be comfortable with the rates you're charging. If you're more of a "feeling" type than a "thinking" type, you will probably appreciate the pricing exercise described in Mark Silver's e-book, Finding Your Right Price. It has been said that most people are actually undercharging, rather than overcharging, especially women. After all, nice girls don't talk about money, right? One person who is passionately devoted to helping women earn at their potential is Mikelann Valterra, author of Why Women Earn Less and founder of The Women's Earning Institute. She has a fantastic blog called Savvy Women Earning in which she addresses setting and raising fees and many other related topics, and I highly recommend it. For tips on setting rates specific to professional organizers, check out Maria Gracia's Ultimate Guide for Professional Organizers which covers this and much more, to help you start and grow a profitable organizing business.