What Should I charge......

[cleanwithit]

I'm scouting my competitors for prices. I called about 16 computer repair companies, only 8 of them answered. I'm located in Louisville, KY.

Here are the prices for On-Site Services, for random companies.

1.$70

2.$50

3.$95

4.$75

5.$90

6.$75

7.$50

8.$99

Average= $75

Keep in mind, the only overhead I have is Gas & Phone bill. I'm a college student, and I live at home. How much do you think I should undercut the average? or what is a good rate for my services? I plan on having a mixture of Flat Fees & Hourly rates depending on the job.

I know I don't want the rate to be to low, because I don't want people to think I'm offering a crappy service. But I also know I only need $100 a week to survive.

 

[hawks5999]

If you need $100 per week, charge $99/hr. You'll likely get someone who will pay that sometime during the 168 hours of a given week. Provide quality and establish yourself as a professional. By charging a premium you will weed out a lot of problem people who are looking for the cheapest fix and then want a bunch of extras for free. It's always easier to lower your rates than to raise them. Establish yourself at the high end and then lower if necessary. If you start out middle of the road or too cheap you'll have to struggle to boost rates when you need more than $100 week.

 

[cleanwithit]

If you need $100 per week, charge $99/hr. You'll likely get someone who will pay that sometime during the 168 hours of a given week. Provide quality and establish yourself as a professional. By charging a premium you will weed out a lot of problem people who are looking for the cheapest fix and then want a bunch of extras for free. It's always easier to lower your rates than to raise them. Establish yourself at the high end and then lower if necessary. If you start out middle of the road or too cheap you'll have to struggle to boost rates when you need more than $100 week.

I understand what you're saying. But, will people pay $99 an hour? I guess I'm thinking about it from my perspective, being that I only make $100, I would never pay that much.

So if that rate doesn't work, how long should I wait before changing it? A week, 2 weeks? and how much should I drop the rate.

 

[NWPhotog]

I understand what you're saying. But, will people pay $99 an hour?

So if that rate doesn't work, how long should I wait before changing it? A week, 2 weeks? and how much should I drop the rate.

As surprising as it seems many people do NOT shop based on price. Marketing is the key decision maker. Now that said you have to have the knowledge, tools, and abilities of a profession but once you establish you are 100% professional and can fix the problem, there is very little difference between $75 an hour and $99. Now if all you are selling your service on is price there will be many people that think $20 an hour is way too much!

 

[cleanwithit]

As surprising as it seems many people do NOT shop based on price. Marketing is the key decision maker. Now that said you have to have the knowledge, tools, and abilities of a profession but once you establish you are 100% professional and can fix the problem, there is very little difference between $75 an hour and $99. Now if all you are selling your service on is price there will be many people that think $20 an hour is way too much!

Thanks for the quick response Yes, I agree Marketing is the key decision maker. My uncle has had a business for 20 years, so any questions I have about marketing, I go to him. I know I have the abilities, knowledge, and tools. It's just the profession part, I don't know how everything works yet, as far as a business goes. I'm only 19 years old. But that's why I'm here to learn what I should, and shouldn't do. See my first mistake, I was going to set my prices well below my competitors, and undercut them. I'm so glad I found this site. So I guess I will start at $99/hr.

 

[focuz]

It doesn't matter what service your in, or what quality you provide. People will always think your to expensive unless your doing everything for free. I would start high and if you get a customer make sure to "give them a show and bake them a cake" hehe so that you get referrals.

If you start high and need customers you can market a special, like $99 / hour offered at $60 for this month only.

 

[cleanwithit]

If anybody else has any opinions, please, feel free to post.

 

[cleanwithit]

It doesn't matter what service your in, or what quality you provide. People will always think your to expensive unless your doing everything for free. I would start high and if you get a customer make sure to "give them a show and bake them a cake" hehe so that you get referrals.

If you start high and need customers you can market a special, like $99 / hour offered at $60 for this month only.

Very true, people are so cheap. ahhh, I like your idea. I love this site. Technibble.com has put me on the right track.

So how do you guys do referrals. Do you say refer someone to me and get $20 off the next visit? I'm curious to know how you do that.

 

[focuz]

Almost forget my best used slogan... When someone does complain about the price you just have to say "Well I am the greatest and the best, and can do the job in half the time another tech could. So in the end you'll be paying the same amount"

The only problem with this is you actually do have to know what your talking about so the customer feels like they can trust you and your quality.

 

[cleanwithit]

Almost forget my best used slogan... When someone does complain about the price you just have to say "Well I am the greatest and the best, and can do the job in half the time another tech could. So in the end you'll be paying the same amount"

The only problem with this is you actually do have to know what your talking about so the customer feels like they can trust you and your quality.

Right, I feel I have really good PC repair skills. I have my A+, Net +. I know that doesn't mean much, but it does show some level of knowledge. But there hasn't been a problem between friends & family that I could not fix. That is a good slogan, I will remember that one.

I heard at GeekSquad, one of my friends works there, that if they can't find the problem in like 5 minutes, they tell the customer they will have to format, and reinstall windows. What a load of crap.

 

[seedubya]

I agree with everyone else here. I charge €80/hr which is above average for my geographical area. That excludes VAT (taxes). I charge the same rate for both domestic and business customers. Just make sure that if you charge a certain price, you make the service worth it for the customer. Go the extra mile, offer a guarantee, or a "no fix, no fee". If you know what you're doing, "no fix, no fee" is a very safe way to guarantee your work. Just be clear with your customers that the guarantee only applies if you CAN'T fix, not if they WON'T fix. You will be able to solve 95% of problems but some of the solutions you offer will be uneconomic. I offer this guarantee and in cases where they won't pay for the fix I charge a fee for the time spent in diagnosis. For repeat customers I often waive part or even all of the fee. But be clear with them from the get go. Clarify everything on the phone BEFORE you get in your car.

And again, go the extra mile, make your customers love you and never want anyone else near their computer but you.

 

[cleanwithit]

I agree with everyone else here. I charge €80/hr which is above average for my geographical area. That excludes VAT (taxes). I charge the same rate for both domestic and business customers. Just make sure that if you charge a certain price, you make the service worth it for the customer. Go the extra mile, offer a guarantee, or a "no fix, no fee". If you know what you're doing, "no fix, no fee" is a very safe way to guarantee your work. Just be clear with your customers that the guarantee only applies if you CAN'T fix, not if they WON'T fix. You will be able to solve 95% of problems but some of the solutions you offer will be uneconomic. I offer this guarantee and in cases where they won't pay for the fix I charge a fee for the time spent in diagnosis. For repeat customers I often waive part or even all of the fee. But be clear with them from the get go. Clarify everything on the phone BEFORE you get in your car.

And again, go the extra mile, make your customers love you and never want anyone else near their computer but you.

I was planning on offering a, "No Fix, No Fee", to all of my customers. Just to let them know, I guarantee my work. Thank you, for your post. This is really helping me. One question, How do you guys order the parts, lets say for example it has bad RAM.

Do you get the money from the customer, order it, then install the RAM?

Or do you pay for the RAM, install it, then charge the customer?

 

[focuz]

Most clients won't pay until service is complete, especially since your not 100% sure how much billable time you will be on a call. So I just foot the bill and invoice them once I'm done.

 

[cleanwithit]

Most clients won't pay until service is complete, especially since your not 100% sure how much billable time you will be on a call. So I just foot the bill and invoice them once I'm done.

So if you need RAM. Where do you go to buy it? Buy it online, BestBuy? If you're on-site, and they need a part, do you take the computer with you? I just want to know how you guys do that.

 

[TimeCode]

Computer parts and such

So if you need RAM. Where do you go to buy it? Buy it online, BestBuy? If you're on-site, and they need a part, do you take the computer with you? I just want to know how you guys do that.

I always keep some of the more common types (at least for what I've needed) in my truck and I buy from MA Labs, Ingram Micro or Tech Data. I have a reseller's permit so i don't have to pay the sales tax but I do have to charge my clients the sales tax.

Regarding sales tax, I'm assuming that your state has it, be sure that you collect it and have the money when the bill comes due. In California they don't take it lightly when you have spent the money that you collected for them.

And if a client needs RAM that I don't have on hand, I tell them I'll order it and leave their PC with them. RAM isn't a high-ticket item so I don't worry about it. But for larger items I ask them to put down 50% so I know they'll buy it.

 

[cleanwithit]

I always keep some of the more common types (at least for what I've needed) in my truck and I buy from MA Labs, Ingram Micro or Tech Data. I have a reseller's permit so i don't have to pay the sales tax but I do have to charge my clients the sales tax.

Regarding sales tax, I'm assuming that your state has it, be sure that you collect it and have the money when the bill comes due. In California they don't take it lightly when you have spent the money that you collected for them.

And if a client needs RAM that I don't have on hand, I tell them I'll order it and leave their PC with them. RAM isn't a high-ticket item so I don't worry about it. But for larger items I ask them to put down 50% so I know they'll buy it.

Thankyou for that. I'm just trying to get a structure of how am going to go about doing things. I guess I will fork the money for the part, then install it, then have them pay. So do you do the sign off form(paperwork), before or after they pay? I'm guessing when the job is finished.

Sorry, I got alot of questions.

 

[seedubya]

Most clients won't pay until service is complete, especially since your not 100% sure how much billable time you will be on a call. So I just foot the bill and invoice them once I'm done.

Ditto here, I don't invoice until I'm 100% positive the job is finished. The vast majority of people you meet will be completely honest. That being said, my very first domestic call-out customer stiffed me!! It was my own fault to some degree, in that I KNEW when I was with him that something was not right. I knew when he gave me a cheque that I should have insisted on cash but I wasn't confident enough to do so and, besides, this guy was a well known local celebrity. It was only an hour + a ps/2 keyboard but man was I ******. I chased him for three years, never got past his electric gates. He died then but when I get up (down?) there I'll chase him some more

Do up a parts order form in Word, keep some blanks with you and get the customer to sign one if you need to order parts, particularly if you have any worries about the customer. And always, always, always fill out and get signed a work order.

 

[cleanwithit]

Ditto here, I don't invoice until I'm 100% positive the job is finished. The vast majority of people you meet will be completely honest. That being said, my very first domestic call-out customer stiffed me!! It was my own fault to some degree, in that I KNEW when I was with him that something was not right. I knew when he gave me a cheque that I should have insisted on cash but I wasn't confident enough to do so and, besides, this guy was a well known local celebrity. It was only an hour + a ps/2 keyboard but man was I ******. I chased him for three years, never got past his electric gates. He died then but when I get up (down?) there I'll chase him some more

Do up a parts order form in Word, keep some blanks with you and get the customer to sign one if you need to order parts, particularly if you have any worries about the customer. And always, always, always fill out and get signed a work order.

Great. I guess that's what I will do then, bill after You will get him one day I plan on ordering the Technibble's Business Kit, so that should help with work orders. Thank you so much.

 

[cleanwithit]

A few questions:


Lets say someone has a cracked version of XP, what do you then?

Where do you get the manufacturer recovery disks for Dell, HP at?

If someone needs a license key, do you have them call and get one while you're there, or what?

 

[hawks5999]

A few questions:


Lets say someone has a cracked version of XP, what do you then?

Where do you get the manufacturer recovery disks for Dell, HP at?

If someone needs a license key, do you have them call and get one while you're there, or what?

That depends. Are you in Israel by chance?