Big job coming up for a company - Need advice

RyansPCRepairs

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I got a call from a dermatologist company, they needed help connecting a Canon all-in-one printer/scanner/copier to a Windows machine. I went in a troubleshooted it for an hour or so, and got it working. They said that I was the third guy to come in and nobody was able to fix it before me, and they were really impressed.

Basically they offered me to become their IT guy for their company. Very cool.

So they're asking for a price proposal on a job they need done and I have no idea what to price, because I'm used to doing home-pcs at a fixed rate.

They need data backed up, system upgrade (I assume they mean maintenance, like declutter etc, but possibly OS upgrade), and LogMeIn installed on each computer.

They want me to do this at 6 locations! Awesome. I assume they have multiple computers at each location.


So, heres my thinking. When working with a company on a proposal like this, should I be thinking flat rate or a hourly wage? I usually charge $30 for data backup, $65 or so for a OS upgrade, and $15 or something for a regular software install.. but with a company, this seems overzealous.

If there was 3 machines at every location and they wanted this done, that would be $1980. I don't want to be overzealous or naive and scare them away. This is God giving me an opportunity.

Or I could go the hourly route, and charge, say, $60/hr including travel between buildings.

Thoughts on this?
 
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So, heres my thinking. When working with a company on a proposal like this, should I be thinking flat rate or a hourly wage? I usually charge $30 for data backup, $65 or so for a OS upgrade, and $15 or something for a regular software install.. but with a company, this seems overzealous.

If there was 3 machines at every location and they wanted this done, that would be $1980. I don't want to be overzealous or naive and scare them away. This is God giving me an opportunity.

Or I could go the hourly route, and charge, say, $60/hr including travel between buildings.

Thoughts on this?

I don't think your being overzealous at all. In fact honestly I think your to cheap. I personally will not upgrade an OS. I backup N&P and restore data. Upgrades are just asking for trouble. I charge $130 thats 2 hours at $65 for a N&P. Of course if I had a job like this they would get a discount but they would still be looking at $90 to $100 per system for new OS's. In regards to the other stuff it would just be hourly on site work. Logmein would get included in the N&P but for the systems not getting that it would be hourly. Full images are included in the N&P also but if the customer wants those retained or transfered then there would be a fee for that to.

The whole "I have had 3 techs look at this and not fix it" I think must be in a book somewhere because I have heard that so many times that I think its just a way for a customer to butter you up to get a good deal. The first few times I heard it I totally fell for it and hooked the customer up and I still will on clients are are regulars but in all honestly I have heard that line so many times that there is no way the other techs in my area are that bad. Then again if they are then I guess I am in luck, lol.
 
Go flat rate, and price three levels of service. From the best most expensive gear and service. Mid level with cheaper options. An bottom grade with even cheaper options. Pricing is subject to your area. Great read on the subject below. Good luck.

big0782126618.jpg
 
Go flat rate, and price three levels of service. From the best most expensive gear and service. Mid level with cheaper options. An bottom grade with even cheaper options. Pricing is subject to your area. Great read on the subject below. Good luck.

I don't really agree with that because if the customer picks the cheapest service and the system is not as fast as it could be and they are not happy then it might reflect badly on your business.
 
For businesses I support, I always charge time and materials.

The only item I flat rate for business (other than virus removal) is when they purchase new replacement workstations - $250/pc for new pc config recommendation, help them order, unpack, remove old pc, setup new pc, install & configure software, transfer data and setup email. Flat rate is charged since I can setup multiple computers simultaneously and make the most of my time on-site.

You can always charge them for a block of time for each month... - say 10 hours a month for $xxx and any additional beyond that is $xxx.

Whichever way you decided, you should go and visually inspect the sites and machines. This should be part of your analysis before quoting a price.
 
For businesses I support, I always charge time and materials.

The only item I flat rate for business (other than virus removal) is when they purchase new replacement workstations - $250/pc for new pc config recommendation, help them order, unpack, remove old pc, setup new pc, install & configure software, transfer data and setup email. Flat rate is charged since I can setup multiple computers simultaneously and make the most of my time on-site.

You can always charge them for a block of time for each month... - say 10 hours a month for $xxx and any additional beyond that is $xxx.

Whichever way you decided, you should go and visually inspect the sites and machines. This should be part of your analysis before quoting a price.

When you first start servicing a new client with issues the time needed to get the system running smoothly will require more time. But once the systems running at peak performance then your hours will be less. So after you've done all that work you will eventually cut your own hours unless you go in an just sit there or talk to employees distracting them from their work.

Furthermore, committing to time limits your income potential. How can I get another new client up and running when I've committed all my time else where? I servicing clients needs as they arrive. I make regular visits at set times every week but I won't stay if there are no issues or maintenance to do. Hours limit your earning potential. Read the book I mention above. He explains it well.
 
I don't really agree with that because if the customer picks the cheapest service and the system is not as fast as it could be and they are not happy then it might reflect badly on your business.

That's how you spot a frugal client. A client that is doing well might want the best of the best while business is good. A client that's cash strapped will want the cheaper option. However, I structure the mid-level option so it's more appealing and most will choose it. The option the client chooses tells you what you are dealing with and how much earning potential is there for you. This way you won't price yourself over or under the next guys proposal. Businesses want options.

Is a 1GB Cisco switch faster or slower than 1GB Netgear? Businesses won't see the performance difference between a Quad or a Dual Core. I'm not sure why you believe cheaper means slower or lack of performance. It just means less features. As long as the hardware meets the software spec it will perform.
 
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That's how you spot a frugal client. A client that is doing well might want the best of the best while business is good. A client that's cash strapped will want the cheaper option. However, I structure the mid-level option so it's more appealing and most will choose it. The option the client chooses tells you what you are dealing with and how much earning potential is there for you. This way you won't price yourself over or under the next guys proposal. Businesses want options.

Is a 1GB Cisco switch faster or slower than 1GB Netgear? Businesses won't see the performance difference between a Quad or a Dual Core. I'm not sure why you believe cheaper means slower or lack of performance. It just means less features. As long as the hardware meets the software spec it will perform.

I'm talking in regards of repairing a system.

For instance say a system has tons of adware and a bunch of startup items as well as running Norton antivirus and low memory. If you have a low end service that just removes the adware and a high end service that removes the adware, startup items, and replaces Norton with MCE with the option to upgrade the memory then your low end service will just show marginal performance increases if anything at all and for clients that pick that they will wonder what they paid you for at all. By only offering a cleanup service that focuses on all the common problems you are more likely to impress the customer with the performance of there new system. I have had many clients that where ready to buy a new computer until they got my flat rate $130 tuneup/clean up service that not only stopped them from having to buy a new computer but also made them very happy with the one they have.

By having a low end service that does not cover some of the most common problems it leave the customer interpreting whether your service had any value at all. Now on the flip side if Joe Blow down the street does the $25 special and it does not show any improvements and your $130 service makes the computer feel brand new again the next time the customer wants work done they are going to remember the value that you provided rather then the price you charged. Now maybe Joe Blow offers a more expensive and more extensive service to but by giving the customer the option of a cheaper price he has allowed the customer to not see value in his work.

Most customers that call on us don't understand computers. Even more most of these customers have been dealing with a slow computer for ages. So if you can make the computer feel faster then it did when it was brand new they not only are happy with your work but they also talk about the service they got from you with other people.
 
There are a lot of unknowns so first you need to collect as much information as possible when they say they want you to be their IT guy.

Try not to over analyze what they want / need but feel free to explain what you can do to make their life easier. First you have to find their PAIN points and cater your proposal to those. Are they frustrated because they are always having problems or do they need to have new equipment installed...

If it is primarily for maintenance and break fix stuff I like to sell blocks of pre-purchased hours that they client then uses as needed. For new projects/installs I like to quote the specific job and also offer a block of hours for maintenace and continued support.
 
I'm talking in regards of repairing a system.

For instance say a system has tons of adware and a bunch of startup items as well as running Norton antivirus and low memory. If you have a low end service that just removes the adware and a high end service that removes the adware, startup items, and replaces Norton with MCE with the option to upgrade the memory then your low end service will just show marginal performance increases if anything at all and for clients that pick that they will wonder what they paid you for at all. By only offering a cleanup service that focuses on all the common problems you are more likely to impress the customer with the performance of there new system. I have had many clients that where ready to buy a new computer until they got my flat rate $130 tuneup/clean up service that not only stopped them from having to buy a new computer but also made them very happy with the one they have.

By having a low end service that does not cover some of the most common problems it leave the customer interpreting whether your service had any value at all. Now on the flip side if Joe Blow down the street does the $25 special and it does not show any improvements and your $130 service makes the computer feel brand new again the next time the customer wants work done they are going to remember the value that you provided rather then the price you charged. Now maybe Joe Blow offers a more expensive and more extensive service to but by giving the customer the option of a cheaper price he has allowed the customer to not see value in his work.

Most customers that call on us don't understand computers. Even more most of these customers have been dealing with a slow computer for ages. So if you can make the computer feel faster then it did when it was brand new they not only are happy with your work but they also talk about the service they got from you with other people.

Understood. Sounds like you're talking break and fix and I'm thinking service contracts. But I understand what your saying now.
 
I agree with everyone. I took on a small office that quickly grew to multi-sites. I accepted a low hourly rate and now I'm kinda stuck with it. I would suggest sell blocks of time and make good use of a contract. It sounds like you have lots of work for quite awhile.

Good luck.
 
I haven't read through all the responses so I don't know what has been stated. However, I do not recommend your a la carte method for a business like this; it would be more suited for a residential customer and would probably be more of a headache for you to stay on top of. I recommend doing a flat-rate for a set amount of hours. So you can offer different packages such as $4000/mo for X hours with each progressive package giving them more hours at a slightly discounted rate. I agree with the first response, before coming up with the pricing, do a site survey.
 
So I went to one of their offices today to do a check--

They have 8 machines at this location that need to be 'tuned up'. Some have problems like they're slow when browsing. Some need to be connected to a printer. Pretty simple stuff. I offered to do a full cleanup/tuneup for all, which would include:

For each computer
-Speed performance/tune up - (Normally $35)
-Virus and Spyware Removal (Normally $85)
-Troubleshooting specific problems with computer (normally $50/hr)
-Security Suite installed for Browser and PC protection (normally $35)
-Complete Windows updates for latest performance/security patches (normally $30)
-LogMeIn set up to work on each computer to link back to one account (normally $20)

Total thats $255 for each computer...
Which equals $2040 for just the computer tuneups.

But, is it worth it, knowing that 8 computers are going to feel and work like brand new, totally in sync with printers, online backup, and remote support?

Should I cut them a deal because of the amount of work I'm getting? What kind of thing would you do in this situation.

Also, I offered and recommended that I take the machines home, say 2 at a time, and come back each day. They have employees on their computers doing stuff all the time so I figured it would be easier. Should I run scans and stuff behind their work? (Accounting stuff).

If I did this job for a quoted price, than Id sort of have to play a different game when they ask me to 'fix something' on a computer.. could drag out to a lot of hours.

Or, I could go in and work on an hourly wage, one computer at a time, and cycle through. But this seems inconvenient, especially with scans and stuff. I don't think that Spyware is a big problem on their computers, just wanted to make it part of the process, because you never know.

Couple questions:
-For the above job, what would you price. (8 business computer tuneups)
-What is your hourly wage? (if you dont mind)
-For time slots, how many blocks of hours and how much for that?
 
So I went to one of their offices today to do a check--

They have 8 machines at this location that need to be 'tuned up'. Some have problems like they're slow when browsing. Some need to be connected to a printer. Pretty simple stuff. I offered to do a full cleanup/tuneup for all, which would include:

For each computer
-Speed performance/tune up - (Normally $35)
-Virus and Spyware Removal (Normally $85)
-Troubleshooting specific problems with computer (normally $50/hr)
-Security Suite installed for Browser and PC protection (normally $35)
-Complete Windows updates for latest performance/security patches (normally $30)
-LogMeIn set up to work on each computer to link back to one account (normally $20)

Total thats $255 for each computer...
Which equals $2040 for just the computer tuneups.

But, is it worth it, knowing that 8 computers are going to feel and work like brand new, totally in sync with printers, online backup, and remote support?

Should I cut them a deal because of the amount of work I'm getting? What kind of thing would you do in this situation.

Also, I offered and recommended that I take the machines home, say 2 at a time, and come back each day. They have employees on their computers doing stuff all the time so I figured it would be easier. Should I run scans and stuff behind their work? (Accounting stuff).

If I did this job for a quoted price, than Id sort of have to play a different game when they ask me to 'fix something' on a computer.. could drag out to a lot of hours.

Or, I could go in and work on an hourly wage, one computer at a time, and cycle through. But this seems inconvenient, especially with scans and stuff. I don't think that Spyware is a big problem on their computers, just wanted to make it part of the process, because you never know.

Couple questions:
-For the above job, what would you price. (8 business computer tuneups)
-What is your hourly wage? (if you dont mind)
-For time slots, how many blocks of hours and how much for that?

Personally I have a flat rate tune up that includes virus and adware removal for that I charge $130. I would load logmein for free since your getting so much work. My hourly is $65. I would charge hourly for printer hookups and things that need to be done on site. Taking the computers back to the shop is a good idea. However, if you do them on site take control of the system your working on. Let whoever is using the computer know that once you start they can't use the computer until your done. Doing the systems off site will allow you to work on multiple computers at once. On the subject of aware and virus scans I rarely do them anymore. Onsite or offsite. I have found it to be much easier to just remove them manually then waiting for a scan to complete that may or may not work. If something comes up that I truly can't figure out, which doesn't happen often, then I will do one of two things. First I will search Google for removal instructions or a removal tool thats specific to what I am working on or I will infect a clean VM with the virus and analyze the changes it had made so I can reverse them.
 
So I went to one of their offices today to do a check--

They have 8 machines at this location that need to be 'tuned up'. Some have problems like they're slow when browsing. Some need to be connected to a printer. Pretty simple stuff. I offered to do a full cleanup/tuneup for all, which would include:


Total thats $255 for each computer...
Which equals $2040 for just the computer tuneups.

That's a great price... If you only want one shot at supporting them. I can't imagine they'd want much to do with your services after they got a $2040 bill just to "tune up" some computers.

But, is it worth it, knowing that 8 computers are going to feel and work like brand new, totally in sync with printers, online backup, and remote support?

In my opinion, no. And the reason I say that is unless you do something that prevents them from being able to change anything (eg microsoft steadystate) on their machines the "brand new" feel you mention will be very short lived and they'll remember that $2040 bill a lot longer than how smoothly their machines ran.

Should I cut them a deal because of the amount of work I'm getting? What kind of thing would you do in this situation.

In a word yes. But not because of the amount of work you're getting initially but because of the partnership (ie service contracts) you have the potential to develop.

Also, I offered and recommended that I take the machines home, say 2 at a time, and come back each day. They have employees on their computers doing stuff all the time so I figured it would be easier.

I'm not a fan of removing business machines from their locations to work on them. Sometimes you have to but in general I'd rather do the work onsite at their location. It's a pain in the butt with three employees and their boss standing over your shoulder, but in my experience it beats the incessant phone calls you get with things like:

- "Is my computer ready yet?" (an hour after you left the site)

- "Is there any way you can bring Bob's computer in first thing in the morning, he really needs it!" (10 minutes before you're wrapping up for the day and "Bob's" computer is scheduled to be worked on late the next morning.

-"I forgot blah, blah, blah document on my computer and I need it for a meeting in 20 minutes..." (of course they have no idea what it's called or even what location it's in nor can they explain why it's saved to the local drive and not the network share)

Should I run scans and stuff behind their work? (Accounting stuff).

Not sure what you mean with this.

If I did this job for a quoted price, than Id sort of have to play a different game when they ask me to 'fix something' on a computer.. could drag out to a lot of hours.

The initial time investment to get a company's computer systems up and purring is can be significant. Particularly if they haven't kept up with it in the past. For work I go in and take over small to medium sized businesses (3 to 100 desktops not including servers, printers, and networking) and it can be painful. My boss is happy to break even on the initial services, but he hooks them on the work and a maintenance contract once we show our value to them.

For example last week we took over an office with 12 machines and an exchange server. It took about 3 hours on each desktop and another 5 hours on the exchange server to get them "optimized" for a total of 41 billable hours. If we had charged full price it would have been $5125 ($125*41) but he charged about half of that ($2500 to be exact) and got them to agree to a 12 month service contract. We are available to provide 6 hours of service a week (2 hours on site, 4 hours remote) for $3500 a month. Regardless if they use their allotted time they still pay for it. Kind of like insurance.

Obviously they get more than just peace of mind for $3500 a month;each system was imaged, we're pushing two backups of all their critical data - one to a local nas sitting on their network and one to a nas on our network twice a day, and we've setup 24/7 monitoring with alerts using nagios and spiceworks. It's pretty standard with all our clients. All of that is automated, and initial setup took less than 30 minutes (nagios, spiceworks and the backups) excluding imaging the drives.

Or, I could go in and work on an hourly wage, one computer at a time, and cycle through. But this seems inconvenient, especially with scans and stuff. I don't think that Spyware is a big problem on their computers, just wanted to make it part of the process, because you never know.

I'd go with a firm quote. Be fair but be willing to cut them some slack in the interest of getting a service contract. If you don't believe you can get them on a contract then that changes the majority of my answer, but if you can I'd work everything towards that one goal.

Couple questions:
-For the above job, what would you price. (8 business computer tuneups)

Hard to say without actually seeing them, but I'd probably do everything you mentioned for $1500 on the condition that they agree to a service contract of 12 months. Actual cost per month depends on how many hours you agree to, systems you'd be working on, and how available you need to be (24/7/365 availability is a lot more expensive than 9 to 5). If they aren't willing to do a service contract I'd still give them a bit of a discount, but not much.

-What is your hourly wage? (if you dont mind)

We charge $125 an hour for service during normal business hours, $225 an hour after hours/weekends/holidays.

-For time slots, how many blocks of hours and how much for that?

If the best you can get out of them is prepaying for blocks of hours then I'd say go with your normal rates for the first 40 hours then start discounting from there. Maybe 2 to 3% discount for every 15 hours over 40 they buy.
 
Go flat rate, and price three levels of service. From the best most expensive gear and service. Mid level with cheaper options. An bottom grade with even cheaper options. Pricing is subject to your area. Great read on the subject below. Good luck.

big0782126618.jpg

I personally would never go this route. I don't see how you can give them a bottom grade with "cheaper options" for service. They want there company running smoothly and that's it. If you go with cheap service it will come back and bite you when things are not right with there IT needs. You will end up doing more work for the same $. I personally go by an Hr rate and never have any issues
 
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