- This topic has 13 replies, 8 voices, and was last updated 6 years, 7 months ago by
.
-
Posts
-
Hello! I am a new DMM. I would like to get your thoughts on pricing? I’m not sure what is appropriate for the profession or my market (Cleveland, Ohio). Additionally, what’s that advantages and disadvantages of charging an hourly rate versus a flat monthly fee. Your feedback is much appreciated.
Cierra, I don’t think you were asking this, but just to get it out of the way for anyone else reading: we CAN discuss actual dollar amounts with individuals, but not at any AADMM gatherings – and these forums are considered a gathering. So we won’t talk about actual fees, but that still leaves a lot to be said and shared.
Discussions about the merits of hourly rates vs package or project pricing or flat monthly fees is fair game in this forum (again, as long as dollars & cents aren’t included). I’m now in my 10th year as an organizer (member of NAPO) and/or DMM (AADMM member) and I still do everything by the hour. I’ve never convinced myself that I wouldn’t end up feeling that I was either cheating or taking advantage of a client (or myself) using another method. The downside is that I spend more time tracking and calculating hours than is probably necessary, but it’s my comfort zone. Virtually all my clients purchase pre-paid packages of 20 or 40 hours (for a 5-10% discount); that’s easier and less awkward for all concerned.
A couple of suggestions for you: some people include rates on their websites. It can be very helpful to explore other’s websites, not only looking for rates, but to see how they present information overall.
Another thing you can do is research what other service providers in your area charge e.g., massage therapists, personal trainers, etc. Look into professionals with comparable level of education, training, and work experience you have in regards to providing DMM services.
Best wishes for success!
P.S. I just did a search on your zip code and found three AADMM members within a 20 mile radius of you. I encourage you to contact them directly to introduce yourself and discuss this and any other questions you have. I think you’ll find that we are a very collegial, cooperative clan and are always happy to talk with and encourage others who are considering or new to our profession!
Thanks, Roxanne! The information you’ve provided is very helpful. I will reach out to the local DMMs.
Cierra:
We have been in the business for almost 18 years and used the hourly rate exclusively until a vouple of years ago,when we realized that we were doing either big enough projects or ones with a beginning iddle and an end so that we can charge a flat fee for a given project. As a new DMM, I would start with an hourly rate. Besides checking with other DMM’s in your area, you might see what Geriatric Care Managers are getting in your area. You can go to their websites or call them and ask them. We, in NY, have actually patterned our fees around theirs.
Thanks, Gideon! You guys are providing such valuable advice. It’s great to have these forums and support of my fellow DMMs.
Welcome Cierra! I’ve been a member for just a few short years myself so I remember this process! I started out also by researching a ton of AADMM sites, it’s fun to see everyone’s sites and services. Along the way I found some rates that helped. I also considered which direction I was going. Elderly clients, vs “bookkeeping” vs. Organizing clients etc and looked at what they were making locally. Finally I calculated what I wanted to make and backed into how many clients I would need and how much I would need to charge. You can either google “How much should I charge as a business owner” or email me directly at julianne70miller@gmail and I can get that to you.
I started by charging hourly. I find it a hassle. Now I start hourly to get a feel for the work involved then transition to flat monthly rate. That works very well for me and my clients prefer that. I would highly recommend hourly as a new DMM. You might end up spending more time on a client than you realize. So glad you joined!Others have given you great information. There are a combination of factors in determining rates. I mostly do hourly fees, but for clients who have basically the same work load month after month, I will do a flat rate. It make billing a lot easier for me and there is a clear expectation from the client on how much it will cost each month. I won’t do a flat rate, however, until the client has been a client for 3-6 months so I have been through whatever clean up and set up time I need and then I have time to get a good feel of the work load. I always still explain that if there are any large projects that come up and the workload spikes, there will be an hourly charge for that time. I think the actual rate will be dependent on the types of clients you serve and the level of sophistication in the services you will be offering along with your geographic area. One bit of advice though is to know your worth. Don’t feel guilty about your rates and don’t undercut yourself. Good luck!
Thanks, Caitlin!
Hi Cierra,
I am also fairly new to DMM business but I do have a CFP designation so I had checked with other professionals in my area including Private Health Care Advocates. My hourly fee is inline with them. I hope that helps.Thanks, Teri!
I went to a workshop at a NAPO conference years ago where the speakers encouraged us to figure out what we wanted to earn a year. Then divide that amount by number of weeks (excluding vacation weeks). Then divide by number of hours per week we can bill clients. I came up with an hourly rate that I felt was acceptable. In my 17th year as a DMM, I now charge more than double that starter rate. They also said to be confident about your rate! It is what you think you are worth. I’ve always compared my rate to what accountants charge for non-tax work. I try to be a bit below that rate. And I try to be in line with what others charge in my area. My rate now is comparable to what others in Atlanta (where I used to live) charge, but well below what my colleagues in Phoenix charge. BUT I work remotely so it’s not as relevant now. Last thing: I always charge hourly. I use QuickBooks to track time and have never been comfortable with a flat rate. I never know what new thing my clients will want. Best of luck!
I’ll tag on to what Lynn wrote: Many years ago, when I quoted my hourly rate to a potential new client and she responded very quickly, “Great!” I knew then it was too low! For the next potential client, I raised my hourly rate and felt much better about it. I have continued to raise my rate periodically as I feel my expertise and experience merit a solid rate. You will find your comfort zone as you gain experience.
When I raise my rates with an existing client, I let the person know how long we have worked together. They are usually quite amenable as they know the value of my work.
Good luck as you begin. It’s a fun road to travel!
Thanks, Lynn and Natalie. I can’t wait to land my first client.
- You must be logged in to reply to this topic.