Don't forget to bill for your remote sessions!

[HCHTech]

We are NOT an MSP. We use Solarwinds RMM, but don't bundle any service in with our pricing for that. We basically charge hourly for all work.

We use repairshopr for ticketing and typically bill commercial clients once per month. We get invoices synced from Repairshopr to Quickbooks then I roll them together at the end of the month to send out. One of the "tightening up" things I've been doing this year is running month-end reports from our remote software (we use Logmein Rescue for one-offs and Solarwinds TakeControl for anyone on that system).

You can easily run a report at the end of the month that shows every remote session you had and what computer you connected to. With Logmein, when you open a session, there are blanks to fill in for which client it is, and what the remote is about. With TakeContol, you just get the client and computer. I haven't found a way to record a topic there.

Anyway, it's easy enough to run down through those reports and compare them to the invoice you're about to send out. I've found especially when things are busy that invoicing has gotten sloppy. 1/2 hour charged for a 45 minute remote, some sessions missed completely and never billed, etc. - I'm sure a lot of it is clients calling techs directly. They happen to be available so the do a quick remote session to fix the problem. This bypasses the normal system when folks call the main number and get the scheduling person who creates a ticket and schedules the service.

Using this report, I've averaged about $1,500 a month additional billing so far this year. That's a lot of $!

We've done some re-training and I keep subtle reminders going about billable time, but it's inevitable that a few things get missed every month. Running the reports are easy, and not a single client has pushed back (not surprisingly, we don't ever give the impression that we work for free!)

 

[MDD1963]

I know I consider $1500 a month increased revenue significant!

 

[sapphirescales]

We bill for remote support before we actually do the work. We collect payment over the phone and then we start. If the amount of work is more than we anticipated, we collect the remaining amount IMMEDIATELY after the service is complete while they're still on the phone. It it ends up being simpler than we thought, then we processes a refund. I always collect money UP FRONT BEFORE on-site work and remote work. If we have their computer in the shop, that's collateral. We don't demand payment up front for anything in the shop unless it's not really worth fixing (for example, a Windows XP computer or a computer that's going to cost as much to fix as it's worth just in the cost of parts).

I'm a computer technician. I don't get paid for chasing invoices. That's not part of my job description. Does your car mechanic let you leave with your vehicle after he fixes it and then float the cost for 90 days? No, because that's ridiculous. He doesn't make you pay until you pick it up, but he's certainly not going to let you walk away without paying. That's exactly what these businesses expect you to do, and I give them the finger. They can either pay me immediately for services rendered or they can find some other sucker to give them a free loan. I'm a computer technician, not a banker. If you want a 90 day loan, go talk to the bank.

 

[nlinecomputers]

Gotta get the whip out and train your techs to not open a remote session until they have filled out a ticket. If you check those logs and don't find corresponding tickets then it is time to start writing up people.

 

[HCHTech]

Both valid points. We're a family business, so the rules have to be looser. It's one of the downsides to hiring family (in this case wife & twin sons), it's a tightrope we walk every day. It has been getting better, but I'm willing to accept less than perfect as recompense for enjoying the good things about hiring family. Extra-tricky is adding a non-family member employee to the mix, but she is offsite and a really hard worker so that hasn't been a problem so far.

I'm going to respectfully disagree with @sapphirescales about pre-billing for commercial customers. I think it looks bad to your client, and just isn't an acceptable policy in my market. I found this out the hard way when I almost lost a good client last year because of asking for 100% of hardware costs upfront for a $10,000 server we quoted. This was the first big quote for them, and even though they could afford it, they took that as a message I didn't trust them. They even got a competing quote. Luckily for me, they calmed down after a few weeks when I asked for a face-to-face meeting. The owner flat out told me why he was mad enough to consider leaving. The standard he was used to from other vendors was 50% upfront, 50% on completion, so I agreed to that, he wrote me a check on the spot, and had a check waiting for me for the balance when we showed up with the server. I expect most clients with an established relationship would call you if they didn't like your quote, but not this guy. He's still my client today, and we've put in a half a dozen new workstation since the meltdown about the server, so I guess our relationship is saved, although I still walk on eggshells a bit when they call.

 

[nerd2u]

Frankly for special order items I don't trust people. I require payment up front. Stops the customer from changing their mind a week later and trying to leave you with the bill.

If you don't trust me enough to prepay then your not a customer I want.

Even if they buy it themselves they are likely going to prepay unless they have credit terms with a supplier.

Sent from my SM-G870W using Tapatalk

 

[sapphirescales]

I'm going to respectfully disagree with @sapphirescales about pre-billing for commercial customers. I think it looks bad to your client, and just isn't an acceptable policy in my market. I found this out the hard way when I almost lost a good client last year because of asking for 100% of hardware costs upfront for a $10,000 server we quoted. This was the first big quote for them, and even though they could afford it, they took that as a message I didn't trust them.

Trust is EARNED, not GIVEN away. When you buy something online, do they ship it out to you if you pay half upfront and the other half once you've gotten it and played with it for a few months? No? Gee, I wonder why. Businesses can fold at any time, change owners, or the owner could just be a d*ck that doesn't pay his bills whenever he thinks he can get away with it. Blindly giving out trust is foolish.

That being said, I do have some really good clients. One of my clients works at a major university nearby and always has me build him custom computers. I must have done at least 20 of them by now. So now when he calls to order another one, I don't even bother to collect the down payment. I just order the parts (they are specialty systems so I don't have these types of parts in stock), assemble it, then take full payment at pickup.

I have some clients that initially complain about my policy but when I talk to them about it candidly, most of them understand.

Now I'll do 50% down when building a custom system, but I won't let it leave my possession until 100% of the bill is paid.

And checks? I haven't accepted a check in YEARS. I don't care who it's from. After I nearly got stiffed by a large medical center (think skyscraper) for a meager $10,000 bill, I no longer take checks. A check is as worthless as a Post-It note with the letters "IOU" on it if the account doesn't have the funds. Cash or card, I'm getting my money immediately. If I didn't do it this way, I'd spend half my time chasing invoices and going to court. I would know - that's what I used to do. Maybe it's different where you're from, but I was sick and tired of getting stiffed and having to sue people.

 

[Krynn72]

@sapphirescales

I've always meant to ask you, do you keep any stats on how often people turn you down when you ask for the up-front payment from a first time customer?

And do you know how long the phone calls last when discussing the job details/pricing and ultimately either you or they decide not to proceed?

 

[callthatgirl]

I start the bill when I get on the phone, not when I remote in. I will allow some wiggle on this as some clients just can't get connected for whatever reason, firewall or weird internet issue. At 15 min I stop and figure it out and end the call. Get their system fixed, we start again. I only do remote support, so in their ticket, it's all billable even if you decide to tell me long boring stories lol

 

[sapphirescales]

@sapphirescales

I've always meant to ask you, do you keep any stats on how often people turn you down when you ask for the up-front payment from a first time customer?

And do you know how long the phone calls last when discussing the job details/pricing and ultimately either you or they decide not to proceed?

I keep detailed records for EVERYTHING. I have stats out the ying-yang. It doesn't happen very often. About 1 in 5 are surprised, but only a very small percentage of clients refuse to use us because we require payment upfront. It's less than 1%. How I know this for certain is I only discuss payment once they've agreed to the scope of the work (or at least to our fee for coming out and assessing the situation). I collect payment immediately over the phone for the trip charge. If they can't provide payment, I keep the appointment in but I tell them to call back with a credit card or I won't be coming out. Then after I've given them an estimate, 9 out of 10 agree to it and pay me right away. Some of those that agree have to obtain authorization from the owner to spend that much on his credit card, but most don't.

I close 99.6% of deals in-shop. That is, 99.6% of people that bring something in for repair either agree to the repair or trade the computer in for something else. My close rate for on-site businesses is definitely lower, but still unusually high from the way other techs talk on here. I'm able to close the deal with 93.4% of my on-site businesses because I give them several options. I give them a "minimum," "recommended," and a "premium" option. 19.7% go with the "minimum" option, 52.6% go with the "recommended" option, and 27.7% go with the "premium" option. Any deals we don't end up closing, we call up the business and ask them specifically why. The reasons are as follows:

Price: 58.9%
Decided to put it off: 19.3%
Wanted to go with a different solution: 4.2%
Decided to try fixing it themselves: 3.3%
Chose to keep existing IT company: 13.2%
Other: 1.1%

These are the stats from last year. I consider a close successful if the company decides to implement my solution within thirty (30) days. If they wait longer than that, I remove them from the "successful close" category and add them to the "Decided to put it off" category.

 

[seashore]

I only discuss payment once they've agreed to the scope of the work (or at least to our fee for coming out and assessing the situation). I collect payment immediately over the phone for the trip charge.

Interesting. I'm mobile only and charge one flat fee for the trip and diagnosis (then give an exact no-obligation repair quote onsite after diagnosis). Almost everyone agrees to the initial flat fee and books me to come out. Trouble is (especially if they book a couple of days or more ahead) people sometimes call back near to the appointment to cancel. So I've been toying with requiring the booking fee over the phone by card like you. What do you do if they cancel later? Do you tell them the fee is non-refundable since you have to block the time out in your schedule?

 

[nlinecomputers]

Both valid points. We're a family business, so the rules have to be looser. It's one of the downsides to hiring family (in this case wife & twin sons), it's a tightrope we walk every day. It has been getting better, but I'm willing to accept less than perfect as recompense for enjoying the good things about hiring family. Extra-tricky is adding a non-family member employee to the mix, but she is offsite and a really hard worker so that hasn't been a problem so far.

I'm going to respectfully disagree with @sapphirescales about pre-billing for commercial customers. I think it looks bad to your client, and just isn't an acceptable policy in my market. I found this out the hard way when I almost lost a good client last year because of asking for 100% of hardware costs upfront for a $10,000 server we quoted. This was the first big quote for them, and even though they could afford it, they took that as a message I didn't trust them. They even got a competing quote. Luckily for me, they calmed down after a few weeks when I asked for a face-to-face meeting. The owner flat out told me why he was mad enough to consider leaving. The standard he was used to from other vendors was 50% upfront, 50% on completion, so I agreed to that, he wrote me a check on the spot, and had a check waiting for me for the balance when we showed up with the server. I expect most clients with an established relationship would call you if they didn't like your quote, but not this guy. He's still my client today, and we've put in a half a dozen new workstation since the meltdown about the server, so I guess our relationship is saved, although I still walk on eggshells a bit when they call.

I would have fired that client or they would have paid me in full. He can throw all the fits he wants. I have had this speech before: THIS IS BUSINESS it is not personal. I have to protect my bottom line and fact is I will pay interest on items that I can't pay off in 30 days and most of MY vendors require full payment from me on order. Not even a bank will float you an interest-free loan. And if you order all of this from Dell you will pay for all of it before it ships. Even if you get credit from Dell, in reality, you are getting a loan, with interest charges, from GE Capital, Citicorp, or some other business financial system that Dell has an agreement with.. You owe them. Dell still gets paid in full. I am not big enough to have my own credit line but I do take Master Card and Visa, and that or a check in full is the only way I will do business.

 

[Your PCMD]

Remote service is only offered to clients that are on an MSP plan. We already have their information and their CC information which makes it easy to bill. I have every client setup as NET 10. I cannot be arsed to do it all at the end of the month. To much time involved and time is money. Every 10 days is stupid easy for me or should I say my wife as she is the accounts payable dept.

 

[sapphirescales]

Interesting. I'm mobile only and charge one flat fee for the trip and diagnosis (then give an exact no-obligation repair quote onsite after diagnosis). Almost everyone agrees to the initial flat fee and books me to come out. Trouble is (especially if they book a couple of days or more ahead) people sometimes call back near to the appointment to cancel. So I've been toying with requiring the booking fee over the phone by card like you. What do you do if they cancel later? Do you tell them the fee is non-refundable since you have to block the time out in your schedule?

They are allowed ONE free reschedule so long as they give at least a 48 hour notice. After that, they forfeit the payment and if they want me to book them another appointment they have to pay my trip charge again. If they want to cancel, I have a $20 cancellation fee if they give at least 48 hours notice (which is reimbursed to them if they book again in the next 30 days), or if they don't give at least 48 hours notice, I keep the trip charge. I have VERY few reschedules/cancellations due to my policies. They put me right at the top of the priority list along with their doctor, who will also charge for the visit if they don't give a 48 hours notice.

People are rarely responsible unless you have penalties for them if they're irresponsible. They'll screw you in an instant if they think it benefits them. People are children and it's best if you treat them as such until they prove that they're grown up and responsible.

I would have fired that client or they would have paid me in full. He can throw all the fits he wants. I have had this speech before: THIS IS BUSINESS it is not personal. I have to protect my bottom line and fact is I will pay interest on items that I can't pay off in 30 days and most of MY vendors require full payment from me on order. Not even a bank will float you an interest-free loan. And if you order all of this from Dell you will pay for all of it before it ships. Even if you get credit from Dell, in reality, you are getting a loan, with interest charges, from GE Capital, Citicorp, or some other business financial system that Dell has an agreement with.. You owe them. Dell still gets paid in full. I am not big enough to have my own credit line but I do take Master Card and Visa, and that or a check in full is the only way I will do business.

Thank God - SOMEONE gets it! The only reason businesses do this crap is because people like us let them get away with it! I wish I could just collect stuff and pay whenever I felt like it. Then maybe if they bugged me enough, I'd actually pay them! This is insanity, pure and simple. This may have worked back in the 1800's when people lived in small villages where everyone knew everyone's business and everything flowed through the mail like molasses, but it doesn't work in the 21st century. Truly instant payments are on the horizon. You can pay and get paid as quickly as you could if you just handed the other guy a wad of cash. No more checks, ACH transfers, or waiting days for your processor to find its own a$$ and actually put the money into your bank. We're still very much living in the dark ages.

 

[seashore]

They are allowed ONE free reschedule so long as they give at least a 48 hour notice. After that, they forfeit the payment and if they want me to book them another appointment they have to pay my trip charge again. If they want to cancel, I have a $20 cancellation fee if they give at least 48 hours notice (which is reimbursed to them if they book again in the next 30 days), or if they don't give at least 48 hours notice, I keep the trip charge.

Sounds good. Ever had any chargebacks?

 

[sapphirescales]

Sounds good. Ever had any chargebacks?

Yes, I get some chargebacks. But not often because of this. People KNOW they've f*cked up when they fail to give proper notice. I'll sometimes not double charge them for the trip charge if they reschedule depending on their history with us.

 

[GTP]

All my remote support work is billed via invoice after the session. Clients have 7 days to do CC/EFT/cheque or cash. Residential or business.
The only exceptions to this are a Design Studio and a Wrecking Yard. They purchase my Unlimited Remote Support Plan every year and pay for the following year when it's due.
Never had a problem.

 

[SimpleTech]

All my remote support work is billed via invoice after the session. Clients have 7 days to do CC/EFT/cheque or cash. Residential or business.
The only exceptions to this are a Design Studio and a Wrecking Yard. They purchase my Unlimited Remote Support Plan every year and pay for the following year when it's due.
Never had a problem.

interesting, how much do you bill for a year of unlimited remote support? also in straya mate

 

[GTP]

interesting, how much do you bill for a year of unlimited remote support? also in straya mate

PM'd

 

[Krynn72]

I keep detailed records for EVERYTHING. I have stats out the ying-yang. It doesn't happen very often. About 1 in 5 are surprised, but only a very small percentage of clients refuse to use us because we require payment upfront. It's less than 1%. How I know this for certain is I only discuss payment once they've agreed to the scope of the work (or at least to our fee for coming out and assessing the situation). I collect payment immediately over the phone for the trip charge. If they can't provide payment, I keep the appointment in but I tell them to call back with a credit card or I won't be coming out. Then after I've given them an estimate, 9 out of 10 agree to it and pay me right away. Some of those that agree have to obtain authorization from the owner to spend that much on his credit card, but most don't.

I close 99.6% of deals in-shop. That is, 99.6% of people that bring something in for repair either agree to the repair or trade the computer in for something else. My close rate for on-site businesses is definitely lower, but still unusually high from the way other techs talk on here. I'm able to close the deal with 93.4% of my on-site businesses because I give them several options. I give them a "minimum," "recommended," and a "premium" option. 19.7% go with the "minimum" option, 52.6% go with the "recommended" option, and 27.7% go with the "premium" option. Any deals we don't end up closing, we call up the business and ask them specifically why. The reasons are as follows:

Price: 58.9%
Decided to put it off: 19.3%
Wanted to go with a different solution: 4.2%
Decided to try fixing it themselves: 3.3%
Chose to keep existing IT company: 13.2%
Other: 1.1%

These are the stats from last year. I consider a close successful if the company decides to implement my solution within thirty (30) days. If they wait longer than that, I remove them from the "successful close" category and add them to the "Decided to put it off" category.

Thank you for posting this, exactly what I was curious about. You've got a much higher success rate than I've ever seen. Does this not include the "cheap wad callers" who only call to compare pricing? Or have you been able to whittle those calls down to a negligible amount?

Regarding your cancelation policy, do you explain this over the or email them the details after agreed upon/pre-paid over phone?