$40 an hour, too much for business work?

Tech bud

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Oshkosh, WI
I'm knew to the business market, I had a company call me to set up a wireless router for there restaurant, because they needed a laptop for training purposes and didn't want to run a cord, plus they wanted there customers to have WI-FI. I went out, did it, I decided $40 an hour was fair.... I was there for 1.5 hours. That included setting up the router with a hidden network and one for their guests, plus training two Managers.
A week later, they had a power surge today, they called me in because only one monitor on there ordering system was working(fast food). I tested the monitors with a laptop, they had no display. I tested three control boards on their network on a working computer in the office, they were all fine but one. I went a bought 3 new monitors, and they were wall mounted and that took some time to install. Ordered a replacement control board through their locus systems they use there.
I got the system working as best as I could, all their drive through orders would go to the kitchen, so they could see what was being ordered, and set up a display so they could see what was ordered up front too. This all took around 5.5 hours. So this all comes out to around $220...seems like it's getting high and I have to go back tomorrow and set up the new control board... you think I am charging to much? I'm so used to flat rates with residential customers, it seems the bill is getting high. And lucky I worked in fast food for 6 years and they always had me play with that stuff.
 
$40? TOO MUCH??? I charge $95/hr for businesses. (And I'm less than a lot of local techs (because I don't offer server/etc work)

Unless the manager is screaming at you about "how dare you" and whatnot, you are not charging too much (or he's a cheap ******* and you should never waste your time there again).

Find out what your competitors charge. No one here can give you what you should charge as it depends on your local economy.
 
Call a local IT provider and ask how much they charge for business then match or undercut them.
 
Well I know that a local shop in town charges $120, I work part-time at best buy so I can peek at Geek Squad prices, but in there list they only say $99 to visit. But that's just for them to go out there, not including time worked.
But I also always doubt myself...but today I feel a whole heck of a lot more confident! I rocked that ****! lol
 
$40 per hour is way low for 'as needed' business support.

oldtech is right. Call a couple of IT companies that service your area and ask them what they bill hourly for that same type of work. That will also give you an idea of what to bill the next time a business contacts you for help. As an advantage keep your rates slightly under what the competition is doing.

As for these guys that you are already billing $40 per hour, I would keep raising their rates slowly by 5-10 dollars an hour every few months until you get just below what the local competition is charging. That way you get to keep them long term as a client. If you double their rates overnight you will risk losing them.
 
$40 an hour for a business client would be PizzaTech rates. We charge $135 hr.

If you are getting the work done in a timely manner then you should charger considerably more. One's business rate is normally figured by their level of expertise.

You can bet that the plumber that is called out to this business doesn't charge them $40 an hour or the mechanic who works on the owner's BMW. So, I suggest that you look at it from that standpoint.

As others are suggesting about calling around to other tech companies in the area... also ask them what they would charge YOU to subcontract your overload. That will give you a good indication of what you need to charge to still make a profit on a job if you utilized their services on things that you aren't as familiar with as you would like to be.
 
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Agreed, too little by more than half. When you are running a business you must be able to confidently state your prices when you know they are in line with the rest of the market.

Under absolutely no circumstances should you use any pricing from BB as a reference point. Like any other big box they deal in volume and no one can compete with that.

Providers of business level IT support need to maintain their focus on service quality and reliability.
 
I get 75 per for residential or non server businesses. 125 per for server but I recently stopped servicing servers.

I'm thinking of raising my rates to 90 per.

Don't give it away for 40 per unless you're real green and still learning the trade.

I'll charge a flat rate for virus removal and adjust other tasks that drone on for hours accordingly. I also take them back to my bench if I'll be on site for more than an hour or two.

I'm fighting a "system repair" loop for about 4 hours now. When all is fixed I'll probably bill the homeowner for 2 hours.

This post would be better suited for tech eyes only.
 
I am new to the trade, I just got all my permits and graduated. Some weeks I will get 5 computers and some none, so I didn't want to pass up the work. But I haven't found a job I couldn't do yet. I just installed a server in my house so I can play and got a book on Microsoft servers, so I can learn more about them. Next is some switches and other networking equipment to get more familiar with networks, as I feel that is were I'm lacking and feel less confident.
 
It will take a little while. Don't charge too little though. Charging too little you give the impression that you don't know what you are doing and you will attract cheap customers(you don't want people who are cheap, they tend to ask the most and be on the horn if something is wrong). Charge a higher fair rate, then people start getting the idea you know what you are doing. Raise the rates by like 10, then in a month, another 10-15 and so on until you are market average in your area.
 
Well I know that a local shop in town charges $120, I work part-time at best buy so I can peek at Geek Squad prices, but in there list they only say $99 to visit. But that's just for them to go out there, not including time worked.
But I also always doubt myself...but today I feel a whole heck of a lot more confident! I rocked that ****! lol

as a company that does a lot of work in the fox valley.... go with $75 - $100/hr port to port and you'll be competitive, I'm assuming this was sub-contracted and you'll always have them trying to get you to go too cheap... we do hundreds of thousands of dollars a year in contract and corporate IT work and our rates start at $75/hr and $1/mile... the market supports it... do us all a favor and don't undercut.... unless you never plan on making money after expenses. I don't know about you, but I'm in business to make money!
 
Here, $35/hr for senior work. And they love it.

Yeah, check your market. Seems like you're efficient with your time, respond quickly and nail the target. Double at the least.
 
What are our current prices for residential customers?

Contact us for quote
$50 – first hour (was $65)
$25 – add. half hour

These prices are standard for all our service work that is preformed onsite or dropped off at our shop. If we are not able to resolve the problem onsite, we may need to bring your equipment back to our shop.



What are our current prices for business customers?

Contact us for quote
$65 – first hour
$50 – add. hour

These prices are standard for all service work preformed. All work currently will be done on-site.



This is for a small town Roseburg Oregon I am not sure this if I am charging enough seeing how most places do a flat fee around here. I would also like to see what you guys think about my prices, more pricing info on my site http://roseburghelpdesk.com/services/prices/
 
Really depends on your area and what other companies charge in your area.

I would say $40 is very low.

I charge $89 per hour for my part time business and at my full time job we do $135 an hour plus call out fee.

You dont want to be to too cheap just to get the sale. I find low rates attract customer who focus on price and complain alot.
Dont go too high or people wont call.
I made a spreadsheet of other IT comanies in my area and looked up their rates. I then worked out a median price and i charge a little higher than the median price. I feel this price shows your not too cheap or expensive. Also i recommend having a fixed rate for particular jobs that you have a rough idea of how long that type of job will take.
 
It also depends on what area you are in, in smaller rural areas like mine $75 would be too much to compete with the competition, $65 for business is about the average. Check out your competition, raise your rates to average in between the competition at first, and then raise them as you get more comfortable with the work.
 
I'm knew to the business market, I had a company call me to set up a wireless router for there restaurant, because they needed a laptop for training purposes and didn't want to run a cord, plus they wanted there customers to have WI-FI. I went out, did it, I decided $40 an hour was fair.... I was there for 1.5 hours. That included setting up the router with a hidden network and one for their guests, plus training two Managers.
A week later, they had a power surge today, they called me in because only one monitor on there ordering system was working(fast food). I tested the monitors with a laptop, they had no display. I tested three control boards on their network on a working computer in the office, they were all fine but one. I went a bought 3 new monitors, and they were wall mounted and that took some time to install. Ordered a replacement control board through their locus systems they use there.
I got the system working as best as I could, all their drive through orders would go to the kitchen, so they could see what was being ordered, and set up a display so they could see what was ordered up front too. This all took around 5.5 hours. So this all comes out to around $220...seems like it's getting high and I have to go back tomorrow and set up the new control board... you think I am charging to much? I'm so used to flat rates with residential customers, it seems the bill is getting high. And lucky I worked in fast food for 6 years and they always had me play with that stuff.

You need to get out of the mindset that $220 is much for a business to pay to get stuff done. How much do you think they are bringing in an hour? It's a lot more than that usually. How much you do think they pay for an electrician to fix their kitchen up?

Think about how much they pay their staff. So you're saving them that much at least (more because you work quicker).

So you're not charging too much. You are not charging enough but you haven't got your mind around it yet.

Call around 5 or 6 competitors doing B2B work and find out how much they charge. Don't work for much less. You don't need to.

You don't want to attract clients on the basis you are the cheapest because that way you get cheap clients who try to get a lot for nothing, don't pay their bills, do stuff themselves and drop you when a new tech arrives in town who is willing to work for even less than you. And on that point - if everyone who decides they want to do computer work undercuts the market....where do you think that leaves the market you want to make a career in?
 
Ya, I think I'm going to rethink my prices, sounds like it is pretty low, I will keep that price for the specific company and slowly raise it.
I did have fun, but realized how tired I was when I got back home, crawling up and down the ladder, looking through the rafters for unmarked cords and were they were going.
But I did get to hand my card to another business, they had a power surge at there shop and was in to hand a flyer to them and was curious about me.
But going to rethink and do some research, but got to start packing up the gear needed for the new control board.
 
IF they give you a hard time for that price and that amount of work cut them loose. 40 an hour onsite is lower than what i charge residential. There will alway be people that think it is to high. Let someone else del with it. The amount of work you did and only have 220 bucks. YOu are killing yourself. Dont burn yourself out take less jobs for more money.

I have told people i will not work with them because they argue about every bill.Dont need the headache.
 
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