How much to charge

brooksp

Hi Folks,
Maybe someone can give me some advice.
I am just starting out in my own business, I have a client who wants me to give him a quote for a computer maintenance contract. But I don’t have a clue how much to charge.
It’s a basic office network with one server running windows 2000 and eight networked PC’s running windows XP Pro.
I would intend doing 3 routine checks a year and be on call at other times.
I have been servicing this actual office for the last 3 years while employed for another company so I know the system already. I cannot ask my last employer how much he was charging so I’m hoping that someone can give me a ball-park figure. Just an approximation of how much some people charge would be good.

Thanks in advance

brooksp

Nukem

Pose as a customer give a company that do that sort of thing a buzz and get a quote? Take it from there then.

Terra

Take a look and see what kinda car the manager drives and charge accordingly

ZENER

Terra wrote:

Take a look and see what kinda car the manager drives and charge accordingly

Nukem

Terra wrote:

Take a look and see what kinda car the manager drives and charge accordingly

Oh yes

Baz_

Go to a business adviser and see what you need to do before you start out in business, which will include information on how to go about costing and pricing.

It comes down to a number of factors (and this is far from a complete list):
(1). All costs incurred by you
(2). All parts that may be needed (seperate from your business costs)
(3). Add a little profit

(4). How many hours you intend to work in the whole year

(5). How many hours you intend to work in the above-mentioned office (on the service terms not the on call part)

Now:

(6). Add (1)+(2)+(3) and you will have pretty much what you need to earn in a year, you will need to add x percent for contingency money (i.e. vehicle breakdown).

(7). Divide (6) by the figure at (4) this will give you your hourly rate regardless of where you work.

(8). Multiply (7) by (5).

You will then have solved two problems in one, you will now how much to charge for once yearly service charge that being the figure at (8) and you will know how much to charge for any callouts that being (7) times the number of hours worked plus parts plus profit.

Of course I would still strongly advise you on going to a business adviser, but that should help you get on track.

Baz_

stevenmu

Make sure you factor in the level of service you intend giving them. Things like guarenteed response times, if you provide replacement hardware in case of failure (i.e. if the server goes down do you have one waiting to give them in a matter of hours or not). Ideally try to come up with a few service levels with prices fo each and let them choose.

brooksp

Thanks for the advice.
I would still like to get an approximate cost that other companies are charging just so i'll know if my own calculations are reasonable.
So if anyone can shed some light i would be grateful
brooksp

chilipop

3 or 4 thousand?

Baz_

Nukem wrote:

Pose as a customer give a company that do that sort of thing a buzz and get a quote? Take it from there then.

Just follow Nukems response there and you should get that approximate price...

petes

chilipop wrote:

3 or 4 thousand?

If you are paying that you are getting done. Maintenance contracts are not what they used to be. Most companies try to get the initial business i.e. setting up system etc. first then charge an annual fee. They are not your bread and butter so to say. I would say in the region of €1500 per annum. Again it depends on the level of service you are providing as mentioned by stephenmu.