What I am glad to see here is that shoppers seem to be considering their own value and getting close to putting a price on it.
As small business people, we have overhead and many of us have multiple years of experience, computer, observational and writing skills to be factored into our worth.
In our overhead, we must consider our transportation costs (gas, tolls, insurance, maintenance & repairs) our home office expenses (electric, computers/printers/scanners, office supplies (ink, paper, etc.) and equipment (cameras, cell or smart phone) Professional fees: certification, tax preparation and taxes. In addition, we sometimes have non-reimbursed expenses for proof of visit.
As an independent contractor or consultant, our time is all we have to 'sell.' We should be fairly compensated. Without knowing how much our overhead costs, we cannot add a reasonable amount to the value of our time.
To determine what one will accept in compensation, we should place a value on our time. Base this on what you want to earn and how many hours you reasonably expect to work. For example, if you want to earn (gross) $20,000 (50 weeks), you would need to ‘bill’ $100/day.
Figure out how many shops you can reasonably do during a week. Don't forget the time it takes to read through your emails, respond to schedulers, contract with new companies, and search job boards. Don't forget to include the time you spend reading and re-reading scenarios, guidelines and questionnaires prior to doing the shop. Also, don't forget to include the drive time to and from and the time it takes to enter the reports.
For argument sake, let's say that you can stay within 10 miles of your home and drive a total of less than 1 hour/day and that it will take you 2 hours/day to review emails, schedule shops for yourself, review guidelines, scenarios & questionnaires, print out questionnaires (if you do this). Theoretically you have 300 productive minutes left in an 8 hour day. For simplicity, let’s say it takes 1/2 hour per shop, plus 15 minutes to scan POV and enter the report. Divide 300 productive by 45 mins/shop and you should be able to do 6.66 shops. In order to make $100/day, the shop average for the day needs to be $15.00. We also need to factor in something to cover the overhead. (To be safe, figure another $15/day, so you would need to make an average of roughly $16.50/shop.)
There may be times when I choose to do a shop for lower compensation but it usually factors in reimbursement, such as for a meal or taking my pet to the vets for shots and an exam. Also, in my experience, sometimes it is worth doing multiple locations of the same shops at a lower per shop fee because it reduces the amount of preparation/report time required. In those cases, I tend to look at it as one project. $300 for a 2 day project I can do on the phone at home in my pjs sounds a LOT better than $6 reimbursement for 50 calls.
As an independent contractor or consultant, our time is our product. We should be fairly compensated. Without knowing how much our overhead costs, we cannot add a reasonable amount to the value of our time.
To determine what one will accept in compensation, we should place a value on our time. Base this on what you want to earn and how many hours you reasonably expect to work. For example, if you want to earn (gross) $20,000 and are willing to work 40 hrs/week (50 weeks), the value of your time would be $10/hr.
Figure out how many shops you can reasonably do during a week. Don't forget the time it takes to read through your emails, respond to schedulers, contract with new companies, search job boards. Don't forget to include the time you spend reading and re-reading scenario, guidelines and questionnaires prior to doing the shop. Don't forget to include the drive time to and from and the time it takes to enter the reports.
For argument sake, let's say that you can stay within 10 miles of your home and drive a total of less than 1 hour/day and that it will take you 2 hours/day to review emails, schedule shops for yourself, review guidelines, scenarios & guestionnaires, print out questionnaires (if you do this), and 1/2 hour to do the shop, plus 15 minutes to scan POV and enter the report. Theoretically you have 300 minutes left in an 8 hour day. Divide by 45 mins/shop and you should be able to do 6.66 shops. In order to make $100/day (which would give you $20K/yr), the shop average for the day needs to be $15.00. We also need to factor in something to cover the overhead.