There is a prologue to this post: Sometimes when a virtual assistant makes a mistake which causes a problem in their business, they can get upset, beat themselves up over it, or even sometimes feel stupid, like they feel less of a person because it happened, or even that they’re a bad VA. This is a notion which in the grand scheme of things is not very realistic, we all make mistakes, because we must, it’s essential in any business to make mistakes otherwise amazing, ground-breaking improvement is rarely possible. One VA from my network made a mistake recently, and from this mistake, I thought I would write this post and then maybe more VA’s could benefit from this experience, and know how to manage it without getting into a tiz.
The Scenario…
Here is the scenario, you offer services up to a potential client, they provide a brief of what is required, it sounds fairly straightforward, you make a quote, it’s a new client, with the potential of much more work after they have tested out your services, and so you provide a modest quote, as a hook for further business.
So far so good, until, you realise the job you quoted for is nowhere near the amount you should of been charging because the client failed to provide you with essential information, the systems are not functioning, the work is not how you anticipated it would be etc… etc… So what do you do? Do you carry on knowing that you are going to be out of pocket – the short answer is, “No Way.”
Misquoting can happen to anyone, it’s nothing to do with your lack of ability, or thoroughness, it’s because we are all human, and we all make mistakes occasionally, which is when hindsight comes in rather handy. What seemed simple, clearly is not, so therefore the first lesson is to never underestimate simplicity.
The Practical Solutions
As soon as you realise you have seriously underestimated your workload, to the point where little profit is being made, zero profit is being made, or worse, a loss! You need to immediately take action. Once you discover the problem, you need to immediately re-evaluate your quote, so you are aware of the actual cost, and time it will take. If this is not simple, and you need to research or get further information then it’s important the client is made aware. We are going to go over 3 situations:
- You Underestimated – But You Know How Much It Will Now Cost.
- You Underestimated – But You Don’t Know How Much It’s Going To Cost.
- You Cover Yourself So If This Does Happen, You Have Already Set Expectations For The Client.
#1 You Underestimated – But You Know How Much It Will Now Cost
Let’s say you underestimated, you know how much it should cost, and you are prepared to continue with the project under new terms. This would be the most ideal solution, you own up to the client that certain vital elements of the project came to light after you began, and unfortunately you are unable to continue at the agreed rate, now if it was me at this stage, I would accept my mistake and offer 2 options, the first option is a full refund, (or part refund if some of the work had already been completed), this way you have no recall, the client has not lost anything, and they can go elsewhere if they want to. The second option would be a revised quote, where you would continue on a new rate, or new cost.
I am writing with regards to estimate [quote estimate number here]. After beginning the project I have noticed that there are some issues which were not apparent at the time of the project quotation. I would like to make you aware of these before we can go any further, because this has a significant impact on the time/level of skill required to complete the project.
[enter issues here]
Because of the situation highlighted above, we will need to revise the initial quotation in order to be able to continue to provide this service to the highest standard. I do appreciate that any revision we make may be outside of your own criteria for hiring us, and therefore I would like to give you 2 options:
- I can offer you a [full or partial] refund for the project.
- I have sent a revised quotation, and if this is acceptable we can continue with the project.
[Name], thank you very much for your cooperation in these unforeseen circumstances, we very much appreciate your understanding, and hope to continue working with you. If you have any questions, or would like to discuss this further, please don’t hesitate to contact me.
I look forward to hearing from you.
#2 You Underestimated – But You Don’t Know How Much It’s Going To Cost
But what if the work is really open-ended and you just don’t know how long it will take you, then this makes things a little more complicated, and less desirable for the client. Never leave yourself out of pocket or run any sort of risk of that, at the end of the day you are running a business not a charity, and no matter how much you want to help the client, and how nice they are, when it comes to income, you have to put your needs first – always, no compromise. So you need to break it to the client in a way which will make sense to them, appealing to an understanding nature.
I am writing with regards to estimate [quote estimate number here]. After beginning the project I have noticed that there are some issues which were not apparent at the time of the project quotation. I would like to make you aware of these before we can go any further, because this has a significant impact on the time/level of skill required to complete the project.
[enter issues here]
Because of the situation highlighted above, we will need to adjust the initial quotation to billable hours in order to make this feasible for us to complete to the highest standards. I do appreciate that this change may be outside of your own criteria for hiring us, and therefore I would like to give you 2 options:
- I can offer you a [full or partial] refund for the project.
- We can continue to work on the project at the hourly rate of “XYZ” until it is complete, we will charge in advance in increments of 10 hours. (for example)
[Name], thank you very much for your cooperation in these unforeseen circumstances, we very much appreciate your understanding, and hope to continue working with you. If you have any questions, or would like to discuss this further, please don’t hesitate to contact me.
I look forward to hearing from you.
#3 You Cover Yourself So If This Does Happen, You Have Already Set Expectations For The Client
The more experience you gain in estimates and quotes for work, the better at it you will get, but here are a few pointers which will help cover you if you do underestimate the work involved…
#1. Details, Details, Details!
Always detail on the estimate (exactly) what the work includes and anything it doesn’t include. Itemised is best.
#2. The External Systems Clause
If the work involves any systems from other companies which are outside of your control, ensure that you put a clause in that if any of these systems don’t function it’s not your responsibility and any delays caused by these external systems could result in having to reschedule, or extend deadlines.
#3. The 3rd Party Clause
If you are continuing on work from another contractor, and you were not the one who started the project initially, you need to mention that the estimate is only subject to a review of the previous contractors work, and that you are basing the estimate on the provision that no problems or issues arise from continuing on from the 3rd party. If you find upon inspection that another person has done things differently to how you are going to do them, or the way they have gone about them changes the amount of time you quoted for, then this clause will cover this eventuality, go back to the client, explain the issues you found after you reviewed the work, informing them of any additional costs involved to complete, and any new terms. Make sure you always immediately evaluate the situation before starting any work so you can go back to the client straight away, if necessary.
#4. The Get Out Clause
If you are really not sure about the client or the work, or the whole project will need to be ‘subject’ to certain things, but you want to take a shot at it anyway and see how it goes, make sure that you reserve the right, after inspection, to cancel the project within “X” number of days, and offer a partial or full refund if certain criteria are not met or certain information is unavailable as an example. Make sure you detail the terms so the client will understand the reasons why you have terminated the contract.
The key is to, where possible, not make yourself accountable for anything outside of your own control. Of course you are still responsible for any work you have agreed to provide the client with, but terms can and will need to change if there is anything obscure, unmentioned or unforeseen coming up at the start of the processing stages. Always make sure everything is clearly laid out in writing on your estimate.
How Do You Handle Estimates?
