Onsite Charge - Flat Rate or Hourly, with the option of prepay contract

NeutronTech

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Grayling, Michigan
I'm restructuring my onsite charges. Right now I charge a flat rate in shop, and hourly onsite. One problem I'm facing is that I'm making more money for a typical repair in shop than I am onsite. So, obviously I need to be charging more onsite. However, I don't want to scare people off with a high hourly fee and was thinking of a flat rate fix. Possibly even selling prepaid blocks of visits for a discounted price.

Problem with that is that I might get a company or person that signs on for 5-10 prepaid visits, but saves all their problems up for a while and has me fix them all at once on the same trip. I could end up spending all day on a single job while only using a single visit. Should there be a time limit on a single job? Should there be a limit on computers as well? I don't want a single service call being used for 10 computers at the same time. I would think that one visit is valid only on one computer or something to that effect.

Right now my onsite prices are highly variable. I will adjust them up or down for a variety of reasons. I'd like to standardize this more. I also do want to charge businesses more for the sole reason of the priority service I will be giving them. But I don't want to to advertise a priority service option because I wan't all my customers to feel that they are equally important and of equal priority. I also don't want to be accused of charging a business more just because they are a business.

Right now I don't have a standardized method for after hours pricing either. I'm not, in the normal scope of business, going to take time away from my family just because a customer can't be home until the evening. However, I do understand that this may be the ONLY time a customer has available. I also understand that sometimes businesses can't just shut down their computers during business hours, and all maintenance will need to be done after they close. While I do understand these situations, I will need to make additional money in order for my business to invade my family time. Even then, it will have to be on a very limited basis. Basically I'd work it out on a case by case basis. I don't want customers to think that they can pick an after hours time as a choice when they are available at normal times. I also won't go out of my way to set up an after hours call if it's one of "those" customers.

I have also been thinking about adding one more service rate for in shop. Right now I have basic, and advanced. I was thinking of having a third one just for nuke n paves. These things are too time consuming. But I would include backup, data restore, browser settings and plug in restore, install whatever software they have keys for, and whatever else is needed. I might even include the drivers, but I might just charge extra for that :D

j/k BTW

I'm open to suggestion. I would rather use flat rate pricing if I can make it work. I like the simplicity and the clear expectations of me and the customer.
 
You can set a minimum charge for on-site work.
For example, charge $50 with a minimum of 1.5hrs or something. Or $50/hr with a $25 trip fee or something.

If you really want a flat-rate fee on-site, which I don't really suggest, make the terms to be for each PC. As you said, people can abuse it.

For block-time, you can go for it, but I would suggest trying to go in a managed services direction so you can charge for proactive maintenance as opposed to being called out when everything is on fire.
 
You can set a minimum charge for on-site work.
For example, charge $50 with a minimum of 1.5hrs or something. Or $50/hr with a $25 trip fee or something.

If you really want a flat-rate fee on-site, which I don't really suggest, make the terms to be for each PC. As you said, people can abuse it.

For block-time, you can go for it, but I would suggest trying to go in a managed services direction so you can charge for proactive maintenance as opposed to being called out when everything is on fire.

Yeah, I'll have to look into the managed services some more. The reason I don't feel I'm making enough for, say, an virus is because My in shop flat rate is higher than my hourly rate. So even if I get the computer done in an hour, I'm still making less than I would in shop.

What I could do is charge by the hour, but make the minimum $99, which is what my in shop price is. So, it wouldn't be 99 plus each hour, it would be to check whatever the hourly total comes out to, if it is higher than 99 charge them the total, if it is less then charge the 99.
 
You could charge X for the first hour/half/quarter, and then a lower amount for each additional. You can reduce the scaring-off factor as if a customer thinks about it (they probably won't :p), they will realize that it is in your best interest to do 8 1-hour jobs per day rather than 4 2-hour jobs, so that if a job takes longer, you're not just milking it to charge more. Also, you can make sure your minimum for gas etc is covered in the first charge
 
You could do hourly rates for the onsite work but bring it up, you are convincing them by going there. After hours same thing hourly but much higher. Plus when your onsite your theirs and in the shop you can fix multiple systems at the same time. We do hourly and drive time with drive time half the rate of onsite. When we switched from 9-6 m-f and sat 10-3 to m-f 8-5 we did not loose any business but picked up some in different areas (business clients). The only flat rate we do is on our website to encourage after hours sales.
 
Im in the process of doing a pricing restructuring that will launch 1st of the year, and will do a flat hourly for all service with a "6 hours and under" surcharge of time and a half. I think this clearly describes business needs and will also hit home clients that may want that kind of speedy service.

After doing a competitive analysis of other providers in my area, I found that none charge businesses an outright premium, so I don't want to sway the waters here.

Good ideas above though!
 
The only flat rate we do is on our website to encourage after hours sales.
Mind if I take a look? Was that a typo? did you mean discourage? Or do you want people to get after hours job for the extra money?

Im in the process of doing a pricing restructuring that will launch 1st of the year, and will do a flat hourly for all service with a "6 hours and under" surcharge of time and a half.

Could you explain that a little more? what is a "flat hourly"? Does that just mean you charge business and residential the same? Also don't quite understand why you would charge time and a half if you work onsite less than six hours. Thanks


Thank you everyone for the insight.
 
Mind if I take a look? Was that a typo? did you mean discourage? Or do you want people to get after hours job for the extra money?



Could you explain that a little more? what is a "flat hourly"? Does that just mean you charge business and residential the same? Also don't quite understand why you would charge time and a half if you work onsite less than six hours. Thanks


Thank you everyone for the insight.

Not a typo, if someone purchases a backup system while I am sleeping me or another tech can install it the next day. Someone will not book an appointment after hours but if they see what they need they will buy. Don't let them leave your site and buy elsewhere!
 
Not a typo, if someone purchases a backup system while I am sleeping me or another tech can install it the next day. Someone will not book an appointment after hours but if they see what they need they will buy. Don't let them leave your site and buy elsewhere!

At this stage, there really isn't anything business related that is important enough to take me away from my kids during our family time. If that means I lose a sale, it's worth it.
 
Neutron,

What I meant is that if they wanted me same day, in 6 hours or less response time, then the time and a half would apply. Perhaps this is a bit egregious and I should change it to 4 hours or less, maybe even 3, but I want some sort of deterrent from the needy types taking advantage of fast service. Priority service should always come at a greater cost in my view.
 
At this stage, there really isn't anything business related that is important enough to take me away from my kids during our family time. If that means I lose a sale, it's worth it.

The purchase is made after hours on our website then we ship or install it during normal business hours.
 
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