How to charge an admin fee?

Every month I run business owners boards where business owners get their key questions asked and receive feedback from the other business owners at the meeting. I thought I would share some of the questions and answers. Hope you get some value, I learn something new at every meeting. That's why I love doing them.

Question asked to business owners board? - How to charge an admin fee?

It is significant because - We charge by the hour for our time, and was wondering do we add this as an additional expense on the invoice.

Actions taken to date - Nothing yet, just thinking about it.

Feedback from other members of the board

Person 1 - We have an admin fee charged in our business, the client does not see it in the price as we only have one price on the invoice.?We waver as needed.?You could up your rate slightly to hide this fee.

Person 2 - A concern if your rates are already high, I would show them on the invoice as ancillaries and admin costs.? Every job has those charges, so can't see this as an issue.

Person 3 - If you use an admin for three days per week, the admin person doing the work now is YOU, which is very expensive, you could be doing something more in the business instead of this admin.?As you are not billable, turn yourself into a billable person first.?Change everyone's targets and budgets to include admin.?I never put admin on, but factor in your running costs, and I would bill you a little where you can.

Person 4 - Look at the budget and include it on your invoices.

Person 5 - It's a benefit to the client, and call it a Project management fee for the client to see.?Sell the fee as a benefit. It won't impact your clients.

Would you like to be part of getting your questions answered from a group of experienced business owners? Call Crystal today 0413874034 or find out more on www.thealternativeboard.com.au