Pricing policy

[barry3652]

How did you decide what to charge?
Please leave your answer before reading everybody else's reply (I know some techs who say well that's the going rate not that that's wrong ). Just curious how the prices came about.

[barry3652]

My rate's are worked out on how much a job will cost me ie travel, parts, call back, ect Then my time (how do I work out my time?) that is done by looking at the hourly rate offered by the industry around £20,000 a year average divided by 48 weeks divided by 38 hour. £11 per hour?. Plus a bit toward the advertising ect £15.00 per hour.
But I am only a part timer so I guess I don't count.

[MrUnknown]

I picked a price I would like to earn per hour then made sure it was in-line with my closest competitor, found out that I am $10/hr more but they do not offer in-home pickup.

Most of my repairs are done by me picking up the computer and working on it in my home. These are fixed-price by estimating how long it would take for me to do it by me sitting at the computer (not including scan time, etc), add a half hour for travel and multiplying it by my rate. Sometimes I make less than what I want, sometimes I make a lot of money for only 10mins of "real" work.

[Mr I]

I calculate how much time each service takes and depending on that I set my prices. For example, if I charge $45 per hour, to remove malware I charge $90 + traveling expenses if I the service is onsite.

In addition, an more important, look at the competition. That's your clue

[PCSupportGlasgow]

pricing is pretty simple as a minimum should be something like-

((((RC+COL) / m ) / w ) / d ) / wh) / 2 = BE

BE + Markup for profit and slack times + (optional markup for extra knowledge) = Cost per hour


over time you will know on average how long things take you so you can have certain things at fixed prices.



RC = running costs of being legitimate company over year
m = 12 = months
COL = cost of basic living ie paying bills, food keeping roof over your head
BE = Break even
w = 4 = 4 weekly cycle (i know there 13 in a year but holiday/ illness times need to be factored in)
d = 5= 5 working days per week
wh = working hours in a day
2 = got to count in lost hours so i count as half the actual working hours for likes of paperwork, marketing, answering phone, travelling etc

[JosephLeo]

Originally Posted by PCSupportGlasgow

pricing is pretty simple as a minimum should be something like-

((((RC+COL) / m ) / w ) / d ) / wh) / 2 = BE

BE + Markup for profit and slack times + (optional markup for extra knowledge) = Cost per hour


over time you will know on average how long things take you so you can have certain things at fixed prices.



RC = running costs of being legitimate company over year
m = 12 = months
COL = cost of basic living ie paying bills, food keeping roof over your head
BE = Break even
w = 4 = 4 weekly cycle (i know there 13 in a year but holiday/ illness times need to be factored in)
d = 5= 5 working days per week
wh = working hours in a day
2 = got to count in lost hours so i count as half the actual working hours for likes of paperwork, marketing, answering phone, travelling etc

Math always made me mad...After things like basic algebra I just don't see me using it in an every day scenario. Meh...

My pricing is just going to be $50/Hour * Hours of work on average. For a flat rate fee. I might just go all services $60/hour though and 3 hours max price. But still debating over my pricing.

[PCSupportGlasgow]

Originally Posted by JosephLeo

Math always made me mad...After things like basic algebra I just don't see me using it in an every day scenario. Meh...

My pricing is just going to be $50/Hour * Hours of work on average. For a flat rate fee. I might just go all services $60/hour though and 3 hours max price. But still debating over my pricing.

its only a once a year maths (or every 6 months to make sure your on target). As you have to at the very least make sure you have an hourly rate in place that at a minimum will cover your expences + having a life over a year.

As a wise man once said.

costs = £50
earnings = £50.01
= happy unstressed business owner and a business that still running year after year

costs = £50
earnings = £49.99
= stressed out business owner and a failed business


oh and very few wont take a loss on the first year until the hard work starts to pay off

[ComputerClinic]

Originally Posted by barry3652

How did you decide what to charge?
Please leave your answer before reading everybody else's reply (I know some techs who say well that's the going rate not that that's wrong ). Just curious how the prices came about.

I called all the competing business and told them I had a BSOD and I learned the hourly rates. I then called them again and told them that the PC wasn't turning on at all (likely PSU failure) and learned their minimum fee. I priced my services towards the lower end of my competitors prices.

[acs]

We live 30 miles from nearest "big box store" so may onsite costs reflect the time it would take the client to take his Pc to the store and collect it again.

Most calls are within 5 miles and i charge minimum £26 for the first hour on site. Data back up / reformat/ rebuild £80.

I only operate evenings and weekend and have never had a customer complain about my prices. I would never make a living at it full time in this area but part time it more than covers my insurnace , qualifications, tax etc and puts a nice little bonus in the bank each month.

If you are too cheap you just get snowballed with cheap clients who want you to work all hours for nothing.

[PCSupportGlasgow]

Originally Posted by acs

If you are too cheap you just get snowballed with cheap clients who want you to work all hours for nothing.

Would also add those thatg are too cheap never last. Unfortunately like cockroaches there's always another one willing to take their place after their inevetiable 6 month failure rate and they go back to working in burger king/carwash/etc .