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Prices Anyone?

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by garion11

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I have question on prices. Specifically I do consulting, tech support, installations/upgrades, networking for home users. I can't seem to find any information what is appropriate in charging these users. I charge $50/hr (small issues resolved on the phone I don't bill) and a friend thinks its too low, while another thinks its too high. Anyone have any suggestions/ideas about this confusing issue?

7 replies

by mgradybruin

I do much of the same work. I charge about the same about the same amount an hour. I have found that I have more clients then some of my friends that charge twice as much just because I am as effective as they are but am cheaper.

by ebob

Fifty bucks is probably about right, but...

In some parts of the world $50 a year would be a good salary, and in others (I think of Britain) the equiv of US$50 would be considered cheap.

It all depends on local market value.

by syadm

IMHO
Doesn?t this mean that your friends make the sam money sa you doing half the work?
RGDS/Tom

by timmitchell

My rates vary from $30 to $60 per hour. I set the rates on a per-client basis, and I base the rates on the amount of business I get from each client, what type of work that I do, and the relationship that I have with them. I have a client that generates a lot of word-of-mouth publicity for me, and for that reason I charge a lower rate for that client.

Of course, the local marketplace will have a lot to do with it... make some calls to other companies and contractors, and ask what their typical service rates are.

by lordinfidel

Here is how I figure out mine.

Since I'm the admin of a mid-size company and most of my time is devoted to it. And because of the level of my expertise, i charge 120/hr.

Basically I don't need the cash and don't want to do sidework. So if someone really wants me based on my qualifications, then they are going to pay me for the inconveince.

Now if you are basing your livelihood on fixing peoples systems, 120 is obviosly too much.

40-60 is the median range for just tech support stuff. IF you have certs' you can charge a little more.

Like a CCIE can get an avg of $200/hr for setting up a router. If someone needs me to setup exchange or build their network for them, it will cost them. Again it goes with the skillset.

So basically the more advanced the skill set that you are doing the more cash you can command.

A point to remember though, people with contracts with you should pay less then those who don't. That is just good marketing sense.

by computist

If you have a lot more clients wanting your services than you can handle your rate is to low. If, on the other hand, you are not as busy as you would like to be than your rate is to high. It's basic economics, when the demand is high raise the price.
Of course there is another factor. If your rate is to low most companies will think you are not good enough to bother with. In this case you will not have enough work but the only way to get more is to raise your rates. A market survey (i.e.ask around) will let you know what rate is to low.
A third factor is what you are comfortable with. If you feel like you need to apologize for your rates then make an adjustment until you are no longer embarrassed.

by chrisms

I have just started doing a similar thing. I found out the sort of prices to charge by phoning or going to see other people offering the same as me and asking what they charge.
Since you know what you are doing, ask a few technical questions and see if you get a reasonable answer, and see if they provide the service in the same amount of time as you.
Remember, Don't price yourself out of the market, but Don't leave yourself short each month. A balance is required.

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