Value yourself

[n3rdism]

I see a lot of posts on here about people not wanting to charge and scared the customer is going to go elsewhere.

I just wanted to tell you, people that are chasing cheap and nasty might go elsewhere but the value customers will stay.

Don't be afraid to charge, people that charge $20 / $30 an hour might make a few dollars here and there but they are having to work three times as hard as the techs that charge $80.

The thing you are selling different to everyone else is quality service, anyone can go to the best buys of the world and get a computer but you won't get the same service as if they brought it off the corner store with friendly advice.

So the point I'm trying to get here is value yourself and your time. You are worth the money so charge for it.

 

[jimmm33]

True.

When I was still working as a bench tech for a Mom & Pop repair shop, I met this guy who wanted me to go into business with him. His idea was that he would be like the Wal-mart of PC repair and only charge $40 an hour. He thought the result would be a large influx of new customers looking for that low price. I declined. He lasted about 6 months. Now he washes cars and at car dealership. I struck out on my own soon after and started charging $75 and have since moved up to $82. I'm in my 7th year and going strong.

 

[SThompson86]

Very good point, I just recently had to come to terms with myself and what rates I was going to charge.

The thing that made me say " hey I am going to charge what I need to charge to make a profit." were these nickel and dime customers that would try and bargain with me like I was a car dealer or something. After doing a few nickel and dime petty case clients, I finally released that they end up being the tetotall worst,bothersome customers.

Now days if a client has a problem with my rates I find it A-OK, for they can go on down the road and nickel and dime someone else.

 

[tankman1989]

Thank you for the motivational post! You make some very good points that I wish I could make clear to customers.

Also, thanks for posting in my other thread!

 

[SThompson86]

His idea was that he would be like the Wal-mart of PC repair and only charge $40 an hour. He thought the result would be a large influx of new customers looking for that low price. I declined.

I find that there is a lot of techs with that mind set I have a friend-classmate who works his little free lance business with that approach, and my friend thinks I am crazy for the prices I charge.

I think when you charge more people think and know they are getting quality work, for that is some what built into the people of todays mind set.

 

[Bullfighter]

+1 Not only that but $40 an hour is a recipe for burnout... what happens when you grow? You can't. Are you going to run your ass off for 12 hours a day for the rest of your life? We charge $90 an hour so that I can hire more techs, rent bigger buildings and eventually just own a business so that I can retire. $40/hour is short sighted thinking.

IMHO

EP

 

[Alan22]

I always wondered how anyone in this field can make a real living at $40/hr. after factoring in expenses and taxes. If you're a hired tech working for someone else at $40/hr. that's fantastic, but as a small business owner the math just doesn't add up for me, unless someone else is paying your living expenses (such as living at home with mom & dad) and you don't declare what you make.

 

[onetech4all]

Re:

+1 for all of the above. You get what you pay for.
You have to keep in mind your overhead also. If you have a location, of course your prices will be higher, but if you are a mobile tech, working out of your garage, you probably have cheaper prices, because of your low overhead.
People do not understand what it takes to become efficient at doing what you do; they think it's something you pick up at some crash course on the internet for free over the weekend.

 

[madmark]

I think a lot of it depend son the area that you are working in as well. If i tried to charge $90 an hour like one of the posters above i dont think i would have much business. Look at your competition (legitimate shops not those guys on craiglist charging $30 flat rate fixes) and price your self accordingly.

 

[SThompson86]

I think a lot of it depend son the area that you are working in as well. If i tried to charge $90 an hour like one of the posters above i dont think i would have much business. Look at your competition (legitimate shops not those guys on craiglist charging $30 flat rate fixes) and price your self accordingly.

I agree, My prices are no where near what some of you guys charge on here, but for my area they are reasonable. I try and find that middle ground to where my prices are still good for the customer, yet still good for me.

 

[vdub12]

I charge $65 right now. Someday I am sure I will have to raise it but for now it works.

 

[Bullfighter]

Then I guess my question for SThompson86 and madmark would be: What is your five year plan?

When you get so busy that you have to take on another tech and get office space (if you don't already) will you be able to afford it? Perhaps the cost of living where you live allows for $40/hour to be sufficient.

If that is the case, then keep charging your rate. If it is not, then you will need to come up with another approach if you are going to survive.

Here's my recommended formula:
Add up your wage, cell phone, internet, fuel, rent and all other expenses for a year.
Now add %30 (for slow times, RnD, profit, unexpected expenses)
Divide by the number of hours worked in a year (2000 = 40x52-80 for vacation)
That is your hourly fee. Keep in mind your hours worked will likely be lower for business owners because you have billing, marketing and other time you don't get paid for. (there is an efficiency percentage aspect I didn't get into)

Just my advice...

EP

 

[hardtoremember]

It's been said a bunch already but I'm going to add to it.

People that are looking for cheap computer repair are usually cheap. The question you ask yourself is do they want it cheap or right? If they want it cheap refer them to your cheaper "competition" so they can learn what cheap repair really is and come back to a professional or they can move their cheap butt on down the road.

The threat of using someone else for the job is empty if you encourage them to do so. That is confidence. That is you telling them that you are worth every penny that you charge.

Most people will only need to have one guy using pirated software or just plain not fixing the problem to learn the lesson of "cheap or right."

 

[layoric]

I started @ $40/hr, moved to $45 a year or so ago. Fine with that rate here. Most work is in-house, and they're at flat rate, so works out regardless of the hourly rate. Bus. is $60/hr.

Getting into more marketing soon, so may up it, but for now it does work out quite well.

 

[sjlplat]

I think everyone has a right to make an honest living. I don't, however, think that dictating prices across the world or across the country is going to help anyone. Pricing needs to be established based on solid market analysis. If a business in NYC charges $90/hr, that doesn't make the charge relevant in rural North Dakota.

 

[dweebsonduty]

I feel the exact same way.

I actually wrote a small article about Pizza Techs today.

http://www.dweebsonduty.com/blog/the-pizza-tech-problem

 

[Bullfighter]

I think everyone has a right to make an honest living. I don't, however, think that dictating prices across the world or across the country is going to help anyone. Pricing needs to be established based on solid market analysis. If a business in NYC charges $90/hr, that doesn't make the charge relevant in rural North Dakota.

Agreed, that's why the formula I mentioned above works so well. It allows you to plug in your local rates and create a figure that is relative to the local cost of living (aka the cost of doing business).

EP

 

[jeffl1]

This is something I have been having trouble with. Before the economy tanked I had only corporate clients and charged $125 per hour or lower for contracts clients depending on hours purchased down to $85 per hour. Now I have more residential clients than corporate. They constantly want to get me down to $40 or $50. When I started this business last year I let a bunch of them do it and you really have to bill like crazy to make the money I used to make in my old business. I have several other businesses that sub contract out to me because they are one man shops and need a hand. They don't pay a lot because they can't charge a lot. But they are a big source of my revenue. Do any of you take on sub contracts and how do you bill? Also, do you charge residential one price and corporate another? I work from home and do mostly onsite work so I don't have a store front or anything and my overhead is a mortgage.

 

[jeffl1]

Then I guess my question for SThompson86 and madmark would be: What is your five year plan?

When you get so busy that you have to take on another tech and get office space (if you don't already) will you be able to afford it? Perhaps the cost of living where you live allows for $40/hour to be sufficient.

If that is the case, then keep charging your rate. If it is not, then you will need to come up with another approach if you are going to survive.

Here's my recommended formula:
Add up your wage, cell phone, internet, fuel, rent and all other expenses for a year.
Now add %30 (for slow times, RnD, profit, unexpected expenses)
Divide by the number of hours worked in a year (2000 = 40x52-80 for vacation)


That is your hourly fee. Keep in mind your hours worked will likely be lower for business owners because you have billing, marketing and other time you don't get paid for. (there is an efficiency percentage aspect I didn't get into)

Just my advice...

EP

Thanks for this formula. It is very helpful.

 

[hardtoremember]

They constantly want to get me down to $40 or $50. When I started this business last year I let a bunch of them do it

I think that doing that would make you look desperate or just not confident in the value and expertise you provide.

My advice is to set a price and stick to it. <-- please read twice

If someone can talk you down they will. I for now work for $60 per hour and I know I am worth more. If a customer wants $40 or $50 an hour they need to go somewhere else.