It’s not about the cost, it’s value for money that matters

Last week I had a meeting with a potential client (John), who had been referred to me by a business coach I’ve worked with previously who is helping him to grow and streamline his business.

John runs a pest control business that, although still relatively young (under two years) is doing very well.  The problem is that now the phone has started to ring, and the enquiries are coming in he’s realised he doesn’t have enough time to do everything himself.

The reality is he can’t spend all day out on jobs, then go out on quotes, follow up on enquiries, answer phone calls and then send invoices.  Not if he actually wants to spend any time at home with his wife and their three month old son.

We got chatting and talked through the issues he was experiencing, and he agreed he definitely needed an extra pair of hands to help things run more smoothly.

Then we got to the really fun bit – costs.

I like to think I keep things really simple when it comes to our fees: £25 per hour for our Virtual Assistance service.

However, John immediately baulked at the idea of paying “so much” for another person’s time.  In fact, his exact response was “I could just hire an admin assistant and pay them £7.50 per hour, it would be so much cheaper.”

Now, I know John thinks he’s saying “you’re so expensive”, but what I’m actually hearing is “I’m looking at this the wrong way.”

I practically rub my hands with glee as I roll my sleeves up for this challenge.

Although John actually only needs a few hours of practical admin assistance per day, he wants someone to be around during office hours to answer his phone and handle queries.  As such, he would have to employ a full time member of staff.

The biggest problem here is that he currently operates out of the back of his van.  An admin assistance, regardless of what you paid them, wouldn’t be able to do that.  As a result he’d need to locate office space and pay a deposit to secure it.

He’d then need furniture and equipment to put in to that office space.  Having an employee on site would also mean he’d need employer liability insurance. He’s confessed he has no experience of hiring staff, and wouldn’t know the first thing when it came to establishing whether someone was experienced enough or not. His preference therefore would be to use a recruitment firm to handle all of that for him.

Taking all of that in to account, his nice cost-effective admin assistant has cost him in the region of £4,286 before they’ve even set foot in the building!

It costs nothing to get Time Saving Heroes on board. No equipment, no space, no insurance. Nothing.

That’s a considerable saving right there.

Now let’s look at the monthly costs.

By the time you factor in salary, office rent, professional fees (such as auto enrolment, payroll and HR support), NI and pension contributions our employee is likely to cost in the region of £1,776.74pm.

Alternatively, John could hire a Time Saving Hero for a maximum of 2 hours a day (as that is what he think he needs in the way of real admin support) at a cost of £1,000pm.

He could then sign up to our call handling service at £55pm to ensure his calls are answered between 8.30am and 5pm.

All of a sudden paying £17.50 more per hour has saved him £721.71 per month.

When I put it like that, he saw things differently.

We started working together this morning.