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What do you charge for services?

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by jdclyde

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Recently my boss retired. Instead of filling that position, they now have the department answer directly to his old boss, who is the company controller. (bean counter)

He is looking to turn our department into a cost center that will charge the other departments for our efforts, and so we need to come up with numbers that would be fair to charge.

Things I do that I would need a price for based on an hourly rate.

Network instillation
Network troubleshooting
pc repair
software install
pc setup (deliver and connect)
clean viruses/malware
training

Thanks!

Oh, this does not effect my pay at all, as I am salary. The MAIN goal is to make the managers stop being so frivolous with IT resources.

13 replies

by jaqui

it all gets a set rate of $120.00/hr with a 4 hour minimum charge, directly out of their budget. ]:)

that will stop frivolous use of IT resources.

by charliespencer

Fill your old boss's position and make that person the "gateway". Have him screen the requests based on business needs before they reach the support / help desk.

Charging the departments is going to result in each dept. adding an over-estimated amount to their annual budget. You'll be busting your hump in the fourth quarter as they try to use up that allocation so they can justify asking for that much again next year.

by gadgetgirl

No, seriously, I'll clarify that...!

As a new user is recruited by a team, the Human Remains department add on new equipment prices to the cost of the position. So, if someones' annual wage was, say, ?17.5K, they'd add on around ?2.5k to cover pc, monitor, printer (if necessary), mousenkeyboard, desk, storage. That makes the total bill for that person, to that team of ?20k.

IT then is granted a percentage of that ?2.5k to "run" the person on their equipment. This covers the cost of networking the equipment, having standby replacements (for commonplace kit) specialist programs, internet monitoring, licencing, AV etc. etc. It also covers the cost of an engineer doing an onsite call out when necessary.

(The main overhead we have on that is for the patient systems we currently use, but that cost is only passed on to those using it.)

The cost does actually graduate over time, as technology refresh gets closer - the first year may only be billed at 5% due to the warranty on the kit; the third (or older!) years may get as high as 20% of the "starting price".

It seems to work, but don't ask me how......!

It may give you a basis on which to work, babz, but just realise how much the NHS is in debt over here!

:D

GG

by jdclyde

it gets added into their costs to run the department (costs per ton), and that is the gage they get based on at the end of the year.

Right now, IT is a "free" service to them.

It is in part trying to allocate the expenses to who is using the asset of IT.

by hal 9000

Maybe because I see steps like this as the Thine End of the Wedge to cut IT costs and Staff. Instead of looking at IT as a cost to Departments try to push the idea that it's a Cost Saving that otherwise wouldn't get fully utilised and cost the company far more than they are currently spending to recover for something nasty.

I always prefer to keep IT as [b]Free[/b] so that it gets utilised properly and while maybe sometimes over used it's far better than being constantly called in after the event has happened. I've seen it from both sides and the moment that costs get allocated to the IT section it's the beginning of the end for the company. At first it's all a [b]Paper Cost[/b] but within 2 years the different departments are paying IT costs even if only as another [b]Paper Cost[/b] which will eventually get added to the overall costs and the moment that happens the calls to IT Support drop to the bare minimum and you end up constantly fixing a mess that should and previously never would have happened because the Department Heads don't want to spend the money so they save 2 cents here so that they can spend $45,000,000.00 to fix what broke because they didn't apply the proper preventative fix.

Also remember to factor in the time spent doing the extra Paper Work as the moment that things like this are awarded a cost they need to be Invoiced at some point otherwise the IT Section is a Major Cost Drain instead of being a Proactive Cost Saving Section. As well Time Costs should be calculated from time that you leave Base till you return to Base and Mileage should be charged as well for any long trips that are outside a normal run if you are required to work away from base. If there are any Overnighters [i]or longer involved[/i] you also need to factor in accommodation costs as well. Depends on how much travelling is required and how often you expect staff to be away from home as there can be some Labour Laws involved in this.

I'll look at your original post and list the local charges but depending on the company and circumstances involved these can be quite flexible.

Col

by charliespencer

Sir, how dare you imply the lady exchanges favors for compensation! I happen to know GG would -never- accept monetary gifts for services performed. After all, she wants to compete in the Olympics one day and would not endanger her amateur status. In the true spirit of an amateur who participates purely for the love of the sport, she continues to do it for free.

by jdclyde

as a security specialist, she has the ability to charge a decent wage for her services rendered.

What were you referring to? :0

by gadgetgirl

Tony - correct! If you have to ask, you [b] definitely [/b] can't afford it/me! :p

jd - it depends whether you want "all in" or not..... ;) ;\

Palmie - thank you. I think. Well, at least you kept away from needing/getting the urge (! DE!) to call me an "Old Pro"...

I think, Palmie darling, the phrase that escaped you may have been "enthusiastic amateur"..... :D

Sadly, I may enthuse, but after more than a decade of celibacy, I am most decidedly an [i] amateur [/i].....

GG

No. I'm not kidding!

by jdclyde

And I have been bringing up many of these points. For now it is falling on deaf ears though.

Will ride this puppy till it dies and hope the Michigan economy is done being ravaged by the spy the Canadians sent in to destroy us from within....... :0

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