Review Questions with Accurate Answers
All the following are standard pricing methods for professional organizers, EXCEPT:
a. An hourly or daily rate
b. Hourly rates plus a break-even surcharge
c. A flat rate
d. A price range per service correct answer (b) As a professional organizer you will have to determine
what to charge for your organizing services, and how to structure your fees in a way that best
compensates you for your work. If using an hourly or daily rate, you charge your client a certain dollar
amount for each hour or portion of an hour you work for them. For many beginning organizers, an
hourly rate is the easiest route to go. Some clients may want to know up front what the total cost will be
for your services. These clients prefer to pay a "flat fee" rather than an hourly fee so they know the cost
will not go above a certain amount. With this pay structure, the organizer will quote a fee for a certain
service, usually based on a site visit and initial consultation. Another "flat-rate" type option is to offer a
general price range based on the type of organizing you will be doing. There is no such thing as a break-
even surcharge. The "break-even point" is the point where your income from sales equals your costs, so
your goal is to sell enough services and products at a price that will cover your costs and exceed the
break-even point so you make a profit. [pp. 218-222]
A type of contract that is useful for preventing misunderstandings and spelling out the services to be
provided for a corporate client is: a. A BOP
b. An engagement letter
c. A services agreement
d. A rate sheet correct answer (c) An "engagement letter" is a type of contract you might use with an
individual client, while a "services agreement" is one you would use for a corporate client. [p. 230]
It is an excellent idea to create tangible marketing tools for your business because:
a. They are required to be accepted for membership in professional organizations
b. People are tactile
c. They let people know your business is reputable, credible and trustworthy
d. Both b. and c. correct answer (d) There are a variety of marketing tools that will give your clients or
potential clients something to look at, to review, and will add a sense of legitimacy to your business —
they are marketing tools. People are tactile. They want information that they can hold in their own
hands and take away from a meeting and read at their leisure. Tangible things let them know that your