Fees by hour

[SoulDe]

Hello:

I was reading all article of Thechnibble, and can see the big difference how the bussiness is managed in USA. For example, they can charge per hour in all service on-site. In my country for example, is very difficult to charge per hour, because the clients just want to pay for the "complete job". The average of charge is $35.00 by the complete job. If you take 10 min for repair the computer you gain $35.00, but if you take 5 hours reparing the computer you gain (lost :S) $35.00.

I would a lot money if I charged as in USA (per hour).

Good website!
My english is so bad!

James.

 

[Reviver]

Hi James,

What country do you live in?

How much does it cost per month to rent a one bedroom apartment there?

 

[SoulDe]

From Panamá City.

Rents of apartment!! monthly $500 to $5000.

The Repair computer service is poorly paid - perhaps because there are many young people in business by charging very badly. - and not because there is not money to pay.

 

[LunchBox]

Ask your clients if they want to pay example $35.00 for the complete job but by someone who has little experience. You say you charge more but have more experience and are more knowledgeable on how to repair computers.

 

[NickCat11]

You need to raise the bar. Believe it or not, I started to get more clients when I began to raise my prices. Like LB stated, if you charge to little, customers may attribute that to an inexperienced tech.

 

[lgtechcomputers]

You need to raise the bar. Believe it or not, I started to get more clients when I began to raise my prices. Like LB stated, if you charge to little, customers may attribute that to an inexperienced tech.

This is very true. I second this comment.

 

[callthatgirl]

I raised my prices onsite by $20 an hour, because I am fast and get the job done quickly, compared to non-qualified technicians.

I say charge per hour in your area, get a list of problems beforehand and know what you are in for. Be prepared, do your research.

$35 for a visit? Unheard of here in the States.

 

[MobileTechie]

I would always charge per hour for onsite because you cannot afford to waste hours unavailable to do other work for a small amount of money.

You could try charging per hour but charging less to attract the business. E.g. if the average callout fee in your area is £50 then charge £30/hour. That way when a client calls he has the possibilty your fee will be lower. But from your end you know you won't spend hours working for nothing.

Of you could charge per hour but with a min fee of 2 hours. Or just charge a fixed fee with a time limit.

If customers really do not accept anything but a fixed fee with no time limit then I'd only take certain jobs. You should never work for less than you are worth.

 

[SoulDe]

Thanks for the opinions. Sometime ago I try to charge per hour and I lost clients. In my country nobody charge per hour even neither the big companies. The big companies just charge more money $45 to $50 only that they does not repair the computer, they just format and reinstall the OS (1 hour) - that companies has very diversified their business to gain more money (installing servers and big networks).

The other problem is the piracy, more than 80% of the computer has piracy software (OS, Antivirus, Office, etc) then when you try to repair an computer the client never has the software licences. The clients buy "computer clons" without software licences. Then if they don't pay for the software licences then they don't want pay the correct for repair their computers.

I diversified my business with online services such as email, hosting, etc.. Also selling the damaged parts of the computers.

I will try to charge more, $45.00 to $55.00.

Well folks, my job is very hard here, is very difficult change the whole market. I'm happy know that they can charge per hour in your country.

Thanks for your opinions,

James.

 

[perryny]

Hi James,

If the mentality in Panama City is shifting towards flat rates, I think you could have an advantage if you focused specifically on small businesses (5-25 workstations).

Put together a Maintenance Plan of that consists of daily network monitoring, inventory reporting and remote support and charge a flat-monthly fee. You can charge an additional "per-incident" fee if you have to go on-site. However you structure your fees is up to you. The important thing is that your monthly recurring revenue is based primarily on flat-fees.

Most small businesses (at least in New York City) are looking for the best value they can find rather than just the lowest price.

You need to show your clients that you can give them a higher level of productivity and system reliability, at about the same or even a little higher annual average cost than a low-cost, by the hour, reactive support rep (factor in the disasters that you could prevent with good monitoring).

Figure out what you could charge for your Maintenance Plan. Figure out how many small business clients at an average size of 7 workstations you'll need to generate the revenue you need. Go get those clients.

-Robert

 

[SoulDe]

Thanks perry. Yeah, i have some small companies with "Maitenance Contract". I only attend to the company every 3 months for example. (I do, security updates, check the antivirus, any windows error, clean out the computers (sometimes), etc).

Companies under contract receive the benefit of having their computers without problems and do not require corrective maintenance (very little). I receive a quarterly payment in about 3 hours. $250.00 to 8 computers. In the case of corrective assistance, I will charge the flat rate $35+ $5.00 (transport).

I also won the sales of antivirus software (anually).

I think that is the way (small business). Thanks perry.

 

[perryny]

SoulDe,

At the rate you're charging for your maintenance contract, even if you had one of the cheapest apartments in Panama City, you'll still need at least 6 clients of this size to just pay your rent. I assume you need to eat too?

A small business of 8 workstations paying $83 a month for maintenance and support is not a good client for you. I don't care if the business is in Panama City, New York, Nebraska or Guam. If the company relies on computers, email, Internet connectivity and electronic information for their daily operations, then they need to maintain the systems properly... or risk outages that can be damaging or even devastating to the productivity of the business.

There are small businesses in your area that understand that it is smart to invest in maintaining the systems they spent so much to install in the first place and rely on so heavily for their daily operations.

Build your maintenance plan around providing daily service where you are as useful to their operations as an internal IT Admin would be. Charge appropriately for your maintenance plan (a monthly base fee, plus a low, per-workstation fee).

Your plan doesn't have to be expensive. Just fair and valuable to your client.

$83 a month to support a network is not good for you or the client.

-Robert

 

[JimO'C]

I don't care if the business is in Panama City, New York, Nebraska or Guam.

Robert, I agree, 83 a month is nothing, your underchargeing your self!



I've always wanted a client in Guam.............

 

[SoulDe]

Thanks Robert. Yep, the number of customers is the way I survive.

When you offer monthly preventative maintenance to a customer, he already has 3 quotations on the table, for example ($ 100, $ 110, $ 130). Then you negotiate for example $ 125. Not that I be the one to put prices down, but is the market that keeps prices low. Must compete.

The way to make money is by diversifying the business (for example selling email: $ 50 montly x 20 companies = $1,000) and offer on-site service to many customers. The drawback is that the work is very hard. The diversified services are those that allow me to eat.

 

[perryny]

I'm sorry Soul, but you're missing my point.

If a client has proposals in front of him for $125 a month for maintenance, you need to show them how easily their support costs will average much more than that when they factor in the unexpected problems that will definitely occur in time as a result of not monitoring the systems properly.

Then you have to show them how your own Maintenance Plan, that costs much more than the other proposals, will actually potentially save them money over the course of a year or two. Plus, they'll have less downtime, better performance and higher productivity.

Winning a contract for $125 a month for support (even if you're able to make a few more dollars on reselling AntiVirus), still isn't helping either you or the client.

A small business owner who relies heavily on his or her systems will appreciate your more advanced level of service.

 

[SoulDe]

Perry, thanks, I see your point. Well, I have to make changes - not taking as much attention as other companies do, but see how I can be different from all others. When something costs more, take you more seriously.

I like your thinking. I have to be different (paradigm shift), thanks.