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RFC: What to charge?

By Jim S. ·
Here is a question I have had in the back of my mind. I have been thinking about making my stake in the world of being a IT service provider and was wondering what to charge for suppling services for IT management, I know there are going to be some that answer "what the market will bear, and what you think you are worth and such"

What I am looking for is an answer that I can base some facts on, tke this example and give me what you would think would be fair pricing; A company that has 10 users, they cannot afford a full time IT person, what I am going to propose is that they pay me a yearly service fee for contracting my services as their IT manager.

What I have come up with that I think is fair would be in the neighborhood of 2k per month per 10 users, which comes to 200.00 per user per month and future projects are extra based on 1,200 a week consultant fee plus implementation.

What I am getting at is to provide the small business community with affordable IT services without breaking their bank accounts.

I have done consulting on the side from time to time, but I have always done it at a set rate for a set amount of time which I know what I have charged for doing this is not affordable to a small business.

Any input would be appreciated.

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Do a bottom-up estimate also

by DC Guy In reply to RFC: What to charge?

That was your top-down estimate, looking at what you're providing and what you think the customer might pay.

Now do the bottom-up estimate. Look at your own needs and think about what you need to earn. You have to anticipate a lot of bench time, especially in your first year or two as a self-employed consultant. You also have to factor in all of your own expenses, right down to your telephone and gasoline. Don't forget the training and conferences you'll need to attend to stay on top of your profession.

Typically you need to charge three to four times what you would be paid to do the job on salary.

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