Rates and Rates in Letters

[Leztek]

Hello all...

I have a two fold question...

I am having a tough time setting my rates? I do not want to sell myslef short, plus I do not want to overcharge. I am thinking of starting my rate in the 50 to 55 dollars range. I feel that is midrange for my area of Pennsylvania. Suggestions?

My other question is, I am going to send out some marketing letters. What ios everyone's frlling about posting rates in the letters? good idea/bad idea?

Thanks

Jeff

[Simmy]

I include rates in my letters, however I haven't had a response from any of the companies I've sent them to!

Maybe try sending some letters with rates and some without. I might try the same and see what happens.

$50-55 seems a little on the low side to me. I would start at around $70-75. I charged a similar price to you, when I first started out and I wish now I had started higher. People aren't that bothered about an extra $10-20 as long as you get the job done well.

[swany971]

Hi Leztec, I think ur right on by going with $50-55 range, especially if you just starting out, and need to build up a client base. I'm from Pittsburgh and $50-65 seems to be the middle of the road.
I tend to leave my rates off of marketing material, because those can change. Also, if a customer needs service I'd rather talk to them, and work something out, rather then have them just take a look at the rates and make a decision.

[ftbendpc]

i have found what works best for me is flat rates due to the fact customers dont like uncertanty. they have a fear of being overcharged and like to know most of the cost up front. Have you looked at what places like geek squad charge ? It is insane... $349 for "advanced diagnostic and repair". in the Houston area this would piss off all of my customers.

[Holzster]

Remember the psyche of a person. $59.00 sounds the same to a person than $50.00 or $55.00. So if you are thinking about $50.00 - $55.00 go for $59.00

Also what I do is when I set a price increase is, I do it in 2 phases.

Phase 1 - all new customers get the new rate.
Phase 2 - When I go to an old customers location I tell them then that the rate will go up in 2-3 weeks (sounds better then "Next Trip")

I then in my Invoicing software put the date of that customers increase.

A little extra work but I have never gotten a compliant.

Holzster

[Leztek]

Holzster...

I completly with you...

The old 99.99 rule... it sounds better than 100 dollars.

I think am going to start at 59.00 and see where it goes...

Thanks

[AlanD]

I run a PC support business in UK and have two charge rates. £25 per hour if I am out on site, and £15 per hour if the PC comes back to me.

The reason for this lower charge is that I am not sitting watching the AV scan run etc, I can do other things. Sometimes I might have two or three machines in and can be working on all three at the same time, thus getting paid £45 per hour!

I also tend to forget the odd few extra minutes, e.g. if I am there for 1hr 50mins, I would charge for 1.75 hours, it seems to pay off with repeat business and recommendations.

[Simmy]

Hi AlanD,

Welcome to the forum. Where abouts in the UK do you live?

That's a very competitive rate you have Have you been working for yourself for long?

[superat]

I must be uncompetitive then, I also live in the UK, Rochester, Kent, my flat rate is £65 per hour, but theres no travelling, and I have been doing the job for 30+ years!

I have a retail shop, where I take back any computers that require disk replacement or similar, rather than do it on site, and then the collect and return is included in the price within 25 mile radius of my shop.

I specialise in Businesses and mainly fileservers these days. I do about 5 jobs per week, of 2 hours per job, and the main part of my business is retained support contracts, I make approx £6k per month from these.