The Gritty Virtual Assistant Blog

Dear Gritty VA:

I have a client who needs a presentation created and then put on CD. I’m not sure how to charge for the CD since I buy them in bulk. Plus, this situation makes me wonder what to do about the future when I need to charge for supplies. What do you suggest. ~ MD

Well, there are a number of ways you can go about it.

• The client can supply the CDs and you won’t have to worry about.
• You can use your own supply, divide the number of CDs into the price for the box and use that amount to charge per CD at cost.
• You can provide supplies such as a CD at a fair mark-up value.
• You can make sure you are charging a profitable rate or fee that allows you to throw in the occasional incidental supply and include the CD at no additional cost.

You are perfectly entitled to be reimbursed for expenses. Sometimes providing supplies at-cost is reasonable and makes sense. But don’t forget that when you provide supplies, it’s also common business practice to add your own markup.

For example, I might buy a box of hanging folders for $7.95 + tax, making the per folder cost $0.35, but I might charge clients $0.50 per individual folder, and then charge that standard cost on a case by case basis. I might not bother to charge for a single folder it if it’s a one-time situation, but if it’s a special project or an ongoing task that requires regular use of this supply, I will pass that cost onto the client.

At the same time, there’s something to be said for not sweating the small stuff so that you don’t come across as nickel and diming to the client. In the case of project work that I’ve made good money on, I’m sure not going to worry about the cost of little ol’ CD.

Determining what tack is appropriate for a given situation is a sensibility you will develop as your grow into your business ownership. Whatever you do, just don’t forget that you are in business, not charity, and you don’t have to be apologetic for any of the business decisions you make with regard to compensation and making a profit.

Dear Gritty VA:

I have a client who routinely doesn’t pay me on time. This is how he lives. He pays everyone and everything late. I know he is happy with my work, and he shifts more to me every month. However, I would almost rather he didn’t as I don’t want him to become my biggest client when I don’t know when he’ll pay me. But this isn’t even the biggest problem.

The other day he stated he wants to get no calls, and informed me that he was going to forward all his phone calls to me to handle. Needless to say, I was speechless. I explained that I wasn’t set up for complete customer service, that I like having my set hours and not working on weekends, that I didn’t want my other client work interrupted throughout the day, that it would be hard for me to concentrate, and that I wasn’t interested. Well, I haven’t heard from him since (and, of course, he owes me money). What to do? ~ MJ

The bottom line is you don’t owe any client any involved explanations, excuses or apologies about why you don’t want to do something. If you don’t want to do something, don’t do it.

When a client asks you to do something that you are not interested in doing, simply tell them it’s a service you don’t provide. Period.

Okay, I’m gonna be tough here, but I’m talking to everyone, not to just to you personally: Buck up.

Stop being a victim. You are a business owner–not an employee. You own your business, and it’s up to you to decide what services you want to offer, what your boundaries are, and to clearly communicate to clients your policies as well as your expectations for mutual courtesy and respect (and payment!).

I would consider it no loss to be done with this client. However, he still owes you money, and that I would not allow to slide. Send him a final invoice of everything due, and indicate that it is past due and expected to be paid immediately. You could also attach a cover letter reminding him that communication is a very important part of your business relationship with clients, and that consistent on-time payment is your expectation. Let him know that you are open to having a conversation with him (that is, if you really want to), but in the meantime, the past-due amount is expected in full upon receipt, and all work will be put on hold until payment is received.

If he does not pay, you will have to decide how you are willing to proceed. Personally, my next step would be having my attorney send him a letter.