Pricing Structure

[NiftyNerd]

What do you guys charge? Maybe this is too straight-forward and wrong, if so, deleted this thread.

But here's what I've been charging:

Consumers - $75
Businesses - $125

Maint Agreements Tiered:
$105,95,85

However I gotta go in and talk to a client tomorrow whose unhappy with rates, and I've been thinking of redoing them.

What do you guys think? Am I insane? Any input?

 

[Holzster]

Is this per hour or per job?

 

[K007]

What do you guys charge? Maybe this is too straight-forward and wrong, if so, deleted this thread.

But here's what I've been charging:

Consumers - $75
Businesses - $125

Maint Agreements Tiered:
$105,95,85

However I gotta go in and talk to a client tomorrow whose unhappy with rates, and I've been thinking of redoing them.

What do you guys think? Am I insane? Any input?

There will always be the ones who say the price is too high.
Don't give in and re-do your pricing just yet.
Wait a while longer, and if you get many complaints about the prices, the you will have to look over the prices and try to adjust them.

 

[NiftyNerd]

Is this per hour or per job?

per hour.

his complaint is that he only sees me and its like paying a young guy way too much an hour (im 23) i explain to him, he's paying for me and the guys who work for me, with their certifications, etc.

 

[lightningguru26]

per hour.

his complaint is that he only sees me and its like paying a young guy way too much an hour (im 23) i explain to him, he's paying for me and the guys who work for me, with their certifications, etc.

People seem to forget that they are paying for knowledge.

 

[NiftyNerd]

seems it. i mean i understand, per hour, for one person seems steep when you compare me to the paperboy.

but compare me to a lawyer and im a bargain. i think he has unrealistic expectations.

he's running a small office, w/ 6 computers, a server, 2 printers, voip, security cameras, and im available 24/7/365.

i dont think im charging out of line. and i know for a fact im cheaper than most others locally.

 

[Eddie]

As was said, knowledge is what he is paying for. Age doesn't even come in to it.

 

[Canadian Tech]

Tell him you would charge double if you were older...lol

 

[vdub12]

Honestly age is irrelevant. However, with that said when I was in my 20's it was very hard to get good paying IT work. Now I am in my 30's and its no big deal.

On a side note I have always disagreed with split pricing. I think if you are going to charge 125 for businesses you should charge 125 for residential to. Or lower your prices to 95 for both. The way many businesses look at it is your charging more just because you think you can and its kind of offensive. I have used this analogy before but imagine if a plummer charged you more because he found out your running a business out of your home.

 

[kagman]

I think that for business they are expecting an hourly rate that is fair. You could give them a 10% discount if you end up doning a lot of hours . Make them feel important since they are your client.
Now for home users you really cant charge by the hour when it comes to repairs. After all they can just go out and by a new system for like 300 or 400 dollars. You can charge more for networking and one on one training, etc etc.

Sent from my Eris using Tapatalk

 

[NiftyNerd]

Makes sense...

I never really thought of it that way, but I guess the other side of the argument is that businesses tend to be more complicated in the scope of issues we deal with cover.

ie: more than 1 PC, a server perhaps, network, encryption, etc.

 

[ATTech]

Makes sense...

I never really thought of it that way, but I guess the other side of the argument is that businesses tend to be more complicated in the scope of issues we deal with cover.

ie: more than 1 PC, a server perhaps, network, encryption, etc.

I would disagree with that. Their set-up may be more complex than your average residential, but that doesn't make the issues more complex. I would argue, in fact, that businesses are easier to deal with because they are more likely to call you when the issue isn't a big problem and it's easier to fix. It's the residential people who aren't going to call you when they are getting popups. They're not going to call you when it takes 5 times to boot the PC. They will, however, call you when their hard drive has finally died, they had no backup and they desperately need their information.

 

[vdub12]

Makes sense...

I never really thought of it that way, but I guess the other side of the argument is that businesses tend to be more complicated in the scope of issues we deal with cover.

ie: more than 1 PC, a server perhaps, network, encryption, etc.

Not sure what businesses you are working for but honestly businesses are easy money and easy to please. Almost 80% of the problems businesses suffer from are simple fixes. Better yet many of my business clients keeps lists for me of a bunch of little things that they want done and have me do them all at once on a single visit. Residential on the other hand get off the wall. I am surprised quite a bit at what I find on most residential jobs. Computers that are 7 or 8 years old that where not that great when they where new that some pizza tech upgraded to XP with only 256Mb of ram. Dust and cat hair cloging all the fans and a customer that's mad because the new World of War craft does not play smooth. Wants it fixed or upgraded but doesn't want to pay more then $50 for parts and labor. A big ass dog sticking his head between your legs while your trying to work and the customer saying "Its OK he just likes you" A cat that will not get off the f*ck*ng desk and keeps walking across the keyboard. Papers and garbage all over the desk and the floor around the computer. Then when you tell the customer that there is no way this computer is going to perform like a new one they don't want to pay your diagnostic fee.

I can't complain most of my business and residential customers are great but I have had a few, I'm sure you guys all know the once I'm talking about. But to charge a business more because you claim the work is more complicated. Come on that's a cop out and we all as professionals know it. The reason businesses pay more is because they will pay more. I personally think residential should pay more because of the difficulty of the job. It takes 110% of my knowledge to get though many residential calls. Honestly most business calls I can do in my sleep on a bad day.

Anyway I don't blame anyone for charging businesses more I just hate the excuses that the work is harder because that's honestly bull. On a day when I come in with a hang over I will knock out businesses all day but dread the call from grandma that can't open her yahoo mail.

I would disagree with that. Their set-up may be more complex than your average residential, but that doesn't make the issues more complex. I would argue, in fact, that businesses are easier to deal with because they are more likely to call you when the issue isn't a big problem and it's easier to fix. It's the residential people who aren't going to call you when they are getting popups. They're not going to call you when it takes 5 times to boot the PC. They will, however, call you when their hard drive has finally died, they had no backup and they desperately need their information.

Just replying to second that per my other reply.

 

[BrianB]

The rates look fair. You can certainly find worse help for more money (any big box store), and probably find better help for less money. You just have to convince the client that the likelihood of the latter is much lower than the likelihood of the former.

As for the home rate, I'd personally raise it to the same as the business rate, and never budge on it. People will pay the higher rate, and it may discourage some of the price shoppers, who tend to be hard to deal with and/or collect from.

 

[Martyn]

Maybe also give him half day and day rates with a reduced hourly charge?

 

[Appleby]

As for your age....the cost of running a business is the same if you are 23 or 53. Whenever someone mentions price to me, I let them know that I am FAR from getting rich after 4 years in the business and the cost of rent and advertising goes up every single year and it's just nuts what it costs to run a business.

 

[xxsilk109xx]

As far as the 1st question. My on site rate is 95/hr and in house is 75/hr

@vdub - The only reason I agree with split pricing is because when I work in my office I can work on a lot more than one computer at a time. However, when I am at an office I can only work on maybe 2 or 3 at a time and they are paying me to watch updates install because that is time lost at my office for 75/hr.

On another note, I dont think you are charging to much and agree with most that you will always have some people that get mad about pricing. Mainly I find its with people that cant charge that much themselves and think they do more than you

 

[Mushin]

per hour.

his complaint is that he only sees me and its like paying a young guy way too much an hour (im 23) i explain to him, he's paying for me and the guys who work for me, with their certifications, etc.

Based off of this I would say that the clients percecption and your image is more of the issue than the actual prices being charged. If this is indeed the case don't change pricing.... focus on your image. What things can you do to appear more professional. Do you need to wear a suit? Do you need to drive a branded car?

Take a real hard look at how customer might perceive you and work on that and not the pricing.

 

[camori]

Is your time less valuable when you are at end-user's site?

You need to value your time and charge competively and appropriate to your skills. Have a single price. Stick to it.

Be sure to charge for travel. You can make it something like "My first hour on-site is $150, and then each additional hour is $100". Bill on-site time in a minimum of one-hour, with quarter (or half hour) increments thereafter. Bill remote support time in 15-min increments. That is the benefit to have you work remotely.... No trip charge, and no 1 hour minimum.

Try to get your business clients on a plan. When I started out in 2001, I told my business clients the way I worked was a 4-hour visit every month. I told them what I would be doing (defrag, patch management, AV, etc.), and when I would be there (2nd Tuesday of every month, in AM or PM). As I got busier and the tools got better, these clients became MSP (Managed Services) clients, and we use Kaseya to monitor their networks and remote control their computers, a) freeing up my time, and b) generating a recurring revenue model.

Best wishes!