residentian and commercial costumers fees

[ATTech]

Terms of service are a joke, at least in the U.S. They offer no real protection against a suit. They may figure in the adjudication, but anyone can sue for anything in this country, and you still have to defend against it.

Rick

As was quoted, arbitration required for any disputes and a provision for a maximum award makes it substantially less likely that you will be sued.

 

[Martyn]

I can see the reasons for charging the same and for charging different rates for home compared to businesses. Would the people who charge a different rate apply it to this situation. I got a new customer who got me off Google and rang me saturday. He is a business(dental practice) and one of his four pcs had a fake anti virus which I sorted yesterday. he now wants me to look after the 4 pcs in his practice but he brought me in 2 pcs today from his home to tune up. I'm charging the same rate for all of them but for those who charge different what's your take on it?

 

[PCSupportGlasgow]

Seems this arguement is going around in circles so let me throw another into the mix that noone seems to be mentioning which makes me wonder if enough of the companies on here taking an important part of running a business seriously and possibly cutting corners on:

insurance & Liability:

simple facts business work carries a premium on your insurance and the amount of liability you require. Certainly it something we have ever had to claim on but it is still an expence that requires to be equated into the cost of the service.

eg
Mr Smith's pc goes boom in your care your probably going to be out of pocket say £1000 (replacement pc and some data recovery)
Smiths Widgets Inc server goes boom in your care cost could run into millions (replacement server, data recovery, business loss in staffing costs, loss of critical data, loss of profits, data reinput, data checking, and whatever xyz lawyers can find to claim for) - remember a single critical system can cause untold damage to a business (yes i know redundancy, backups, mission critical/ disaster recovery strategies,etc will come into play but using as an example senario)

now should mr smith subsidise the additional costs and risks involved that placed upon the business by smith widgets inc?

 

[MrUnknown]

I can see the reasons for charging the same and for charging different rates for home compared to businesses. Would the people who charge a different rate apply it to this situation. I got a new customer who got me off Google and rang me saturday. He is a business(dental practice) and one of his four pcs had a fake anti virus which I sorted yesterday. he now wants me to look after the 4 pcs in his practice but he brought me in 2 pcs today from his home to tune up. I'm charging the same rate for all of them but for those who charge different what's your take on it?

None of those (except the "looking after" part) requires any business knowledge so I would charge my regular rates.

Installing and remotely monitoring the PCs would be subject to my regular fees to do that.

 

[NeutronTech]

Yeah, I'm just not a fan of the idea of charging a business more for the sole reason of having more knowledge. Or charging more because they are running Windows 2008 Server or whatever. There are tons of valid reasons for charging businesses more money and I just don't think that level of knowledge is one of them.

Don't get me wrong, you should charge what you are worth. And the more knowledge you have, the more you should charge. But, you can't forget your advanced training when doing "lesser" jobs. So every single one of your customers benefits from that advanced knowledge. So if your basing price solely on knowledge, everyone should be charged the same.

I really think the two most realistic reasons for charging commercial customers more is: 1) Increased liability, and 2) Because they will pay it. There's nothing wrong with charging more because they'll pay it. It's no different than charging more than your competitor charges because you know your customers will pay it. Your not going to set your rates higher than people are willing to pay, or else you'd be out of business. Every price we set is limited to what our customers are willing to pay.

As far as liability goes, damn right we should get paid more for higher risk jobs. If it's not worth the pay, why take the risk?

I'm sorry if this upsets anyone, but I just really am against the argument of charging more because your using "more knowledge" on that particular job. Your knowledge is part of you and every job that you do. There is no separating it, no matter how hard you try.

 

[MrUnknown]

Our industry mostly runs off of what is called Value based pricing. Essentially we sell our services at the price of the value it is worth to our clients.

Sure, I could charge clients at $150/hr, but if all my competition is charging $50/hr you can imagine how much business I will get. This is the value they put in it. They generally understand that price gets them the work done, but no thrills or anything. You might even offer them that for X more, you will even make them a priority and start to work on their computer immediately. They might see the value in that and might accept your offer.

You can link this to an odd truth that is mentioned on this forum. Raise your rates and you will find that your clients value your work, skills and time more.

How about those that charge only by the hour. Alright. $60/hr on-site and $45/hr remote. Why is remote cheaper? You have the same skills, why are you charging less? Because this is what you value it at. You don't have to drive there or even put pants on, they lose that one-on-one communication and experience. It has less value and you charge accordingly.

Do flat-rate and hourly? Probably have a fixed-cost in-shop price for certain things right? I do. Is it cheaper to have me do it in-shop? Yes. Am I doing any less work? Nope, more actually as I pick up and return it. Am I using any less skills? Nope. Why is it cheaper? It isn't done the same day, and I don't dedicate my entire time to it. It has less value and is charged as such.

Why are we charging less for the same service no matter the client?

Do you feel that setting up a Windows Server with file sharing, central backup, etc etc. has the same value as doing an on-site virus removal? If so, why?

 

[ATTech]

Your knowledge is part of you and every job that you do. There is no separating it, no matter how hard you try.

If anyone needs this proven to them, call up a master electrician and ask him if he can do a simpler job for a cheaper rate. Do you think he'll accept a lower rate because it's easier work? I don't think so.

Our industry mostly runs off of what is called Value based pricing. Essentially we sell our services at the price of the value it is worth to our clients.

Sure, I could charge clients at $150/hr, but if all my competition is charging $50/hr you can imagine how much business I will get. This is the value they put in it. They generally understand that price gets them the work done, but no thrills or anything. You might even offer them that for X more, you will even make them a priority and start to work on their computer immediately. They might see the value in that and might accept your offer.

You can link this to an odd truth that is mentioned on this forum. Raise your rates and you will find that your clients value your work, skills and time more.

How about those that charge only by the hour. Alright. $60/hr on-site and $45/hr remote. Why is remote cheaper? You have the same skills, why are you charging less? Because this is what you value it at. You don't have to drive there or even put pants on, they lose that one-on-one communication and experience. It has less value and you charge accordingly.

Do flat-rate and hourly? Probably have a fixed-cost in-shop price for certain things right? I do. Is it cheaper to have me do it in-shop? Yes. Am I doing any less work? Nope, more actually as I pick up and return it. Am I using any less skills? Nope. Why is it cheaper? It isn't done the same day, and I don't dedicate my entire time to it. It has less value and is charged as such.

Why are we charging less for the same service no matter the client?

Do you feel that setting up a Windows Server with file sharing, central backup, etc etc. has the same value as doing an on-site virus removal? If so, why?

So to some up your argument: Businesses pay more because they value it more.

The thing is, the question isn't why they pay more, it's why you charge more. You charge more because businesses value it more, and thus will pay more.

As Neutron said, there is nothing wrong with charging more because businesses will pay more, but at least be honest about it.

 

[MrUnknown]

none of my examples had anything to do with residential vs commercial except for the last statement which you didn't even answer.

Most of it is we charge residential clients different prices for the same exact service also just depending on how we do it.

It also has nothing to do with how much the client values it, the point is you set your pricing based on how much value you percieve that it provides your client.

There are people on here that will charge a business client $150 for a virus removal that costs a residential client $100. Yes, this is wrong. And yes, that is doing it simply because you can. The examples I am giving is charging based on the services provided at what they are simply worth.

I have said it before, we hound people on this forum for charging too little to residential clients because it devalues the work they do. It is simply no different if you are charging less for service that is normally charged at a much higher rate. If you are charging $60/hr for business consulting and the going rate is $175/hr, you are a "pizza tech" of the business consultant world.

Take your electrician example. Call him up and ask him if he will do a more complicated job for a cheaper rate, do you think he would accept that also? Why should I be required to do just that?

 

[JAG Computers]

none of my examples had anything to do with residential vs commercial except for the last statement which you didn't even answer.

Most of it is we charge residential clients different prices for the same exact service also just depending on how we do it.

It also has nothing to do with how much the client values it, the point is you set your pricing based on how much value you percieve that it provides your client.

There are people on here that will charge a business client $150 for a virus removal that costs a residential client $100. Yes, this is wrong. And yes, that is doing it simply because you can. The examples I am giving is charging based on the services provided at what they are simply worth.

I have said it before, we hound people on this forum for charging too little to residential clients because it devalues the work they do. It is simply no different if you are charging less for service that is normally charged at a much higher rate. If you are charging $60/hr for business consulting and the going rate is $175/hr, you are a "pizza tech" of the business consultant world.

Take your electrician example. Call him up and ask him if he will do a more complicated job for a cheaper rate, do you think he would accept that also? Why should I be required to do just that?

I agree with you completely. i have been following this thread for a bit now and my impression from some here is that it is wrong to charge more for valid reasons. If it is a simple job, residential rate. If it is a business level fix, business rate.

Some here are saying that what they are saying should not be construed to mean that we are wrong by charging more but by continuing to debate it they imply that we are. No you didn't say we are wrong but please consider the perception that is given by debating this topic.

Agree to disagree and let it go.

 

[NeutronTech]

Take your electrician example. Call him up and ask him if he will do a more complicated job for a cheaper rate, do you think he would accept that also? Why should I be required to do just that?

Glass half empty, glass half full.

Based on your knowledge you charge a business client, say $150/hr. That means your knowledge and service is worth $150/hr. So, a residential client calls you up and you provide him a service for $100/hr because it is an easier job.

This is exactly what your example states. You are valued at $150/hr but since a job will be easier (residential), you charge less at $100/hr. This is the same thing as calling an electrician and asking him to do a job cheaper because it is easier.

I don't see any of this as charging a commercial client more money. I see this as charging a residential client less money. Your worth your highest price. You are charging the residential client less, not the commercial client more.

Now, if your service is worth $100/hr and that is what you charge residential customers, then you have to add the cost of higher insurance premiums and higher liability. Now your service is worth $100+$50 in overhead that must be covered. So this validates charging more to a commercial client. Any other reason for the price difference is moot and ultimately is just you charging less to residential clients.

Not trying to argue, just my opinion from my perspective.

 

[maclaptech]

I have the same flat fee for both. However, if business or residential customers want extra services, such as data backup before repair, printer setup, etc, I will charge extra flat fees for those as well...

 

[ATTech]

none of my examples had anything to do with residential vs commercial except for the last statement which you didn't even answer.

I'll answer it: Yes, I think they have the same value. There are a host of different things to learn that get wrapped in with Computer Repair/IT Work. Neither one require any extraordinary amount of additional training or experience. Yes, if you know how to remove a virus, and learn how to manage a server, you've now spent more time learning, but that gets made up by the fact that you can now charge for server management services. On the flipside of that, say I have an IT background, so server management(or business issues) come naturally. Now I learn how to properly remove viruses from computers, should I charge more for the virus removals, because I spent more time learning that?

IT Issues take time to learn, they don't take more time.

There are people on here that will charge a business client $150 for a virus removal that costs a residential client $100. Yes, this is wrong. And yes, that is doing it simply because you can. The examples I am giving is charging based on the services provided at what they are simply worth.

Then you have no point to make here. The thread is about residential rates versus business rates, not issues-mostly-seen-in-business rates vs issues-mostly-seen-in-residential rates.

As you stated, you charge based on the issue, not the client.

Take your electrician example. Call him up and ask him if he will do a more complicated job for a cheaper rate, do you think he would accept that also? Why should I be required to do just that?

Just to clarify, this is a different argument than residential vs commercial.

But in regards to this, I don't think he'll accept that either, he charges the same no matter the issue, so why don't you?

 

[minc3d]

ATTech hit it on the head I think. Learning in the field of IT is always a given and I don't think you can just put up black/white lines for what is considered "business" use and "residential" use. I've got small businesses using software and hardware I find at homes, and I've got a few residential customers with servers (dont ask).

So the lines are blurred more than ever and the basic notion that "well because it's a business it deserves a higher rate" is just not plausible anymore. So much so that I refuse to charge businesses more just because they are out to make a buck and may have a server or two.

I differentiate my rates between offsite and onsite work and that is all. Keeps things easy, and doesn't make residential clients feel like I'm putting them off because I make more on businesses. I make more on businesses from the fact that they generally offer more time in bulk for their situations and therefore I'm making the equivalent of a volume bonus with return business. A win win for me in my eyes.