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I am starting a new IT service company which will provide services to personal and business clients such as consultations (IT Security, Network, Hardware, Software), installations and set-ups (Software, Hardware), custom PC builds, hardware and software support as well as the sales of hardware, software and accessories. I am having trouble deciding on what I should charge customers for these services, so I have decided to ask you (the Spiceworks Community) on what I should charge them.

I have already established some prices based on employee hourly wages, but I am unsure if they are too high or too low. Listed below are the prices I have thought about:

  • IT Security Consultation: $70.00/hour
  • Hardware/Software Consultation: $37.50/hour
  • Network Consultation: $65.00/hour
  • Network Installation and Setup: $70.00/hour
  • Hardware Installation and Setup: $250.00/item
  • Hardware, Software and Accessories: COST + 35% Markup
  • Software Installation and Setup: $175.00/item
  • Hardware Repair: MATERIALS COST + 30% Markup + $27.50/hour
  • Hardware/Software Support: $25.00/hour
    Note this this company is in the province of Ontario, Canada where minimum wage has recently increased to $14/hour, and will be increasing to $15/hour beginning January 1st, 2019.
2 Spice ups
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It looks like you are getting into the T&M business. Better than comparing to what an employee might cost, what do other T&M shops in your area charge?

Would you be better with a manged service, or even a retainer model?

2 Spice ups
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I cannot address your consulting rates since i do not know your market rates. I do suggest that you do not mark up hardware or software but instead charge hourly for researching/purchasing/receiving . This is what i do because with so many of items for small businesses the client can price shop you then just decide to purchase themselves and will 50% of the time order the incorrect item they you are onsite and have the difficult task of charging the client for your time to show up and do nothing. Yes it fair but the client’s never like it.

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I can’t say what you should charge as it will depend on what other similar companies charge in your area.

Call a few and ask them, look on their websites. Research your competitors.

Also everything you listed are one off jobs. It’s an ok way to go but better is to come up with a price per user (or per device) per month and with do unlimited support or a set amount of hours. That way you know what’s coming in the bank next month as well as this.

Also research which products your are going to recommend/resell to your customers, make sure the products are reliable, well supported and allow you to make a decent margin.

As someone else said don’t charge a markup on hardware, it’s too easy for customers to Google it, see you’re more expensive and think you are ripping them off. Instead charge a setup or installation fee.

Also please remember running your own business is good, appealing and can be very rewarding. But there is no such thing as time off. Even when on holiday, of the phone rings you need answer it.

Speak to others on here who have set up their own it support companies and take their advice. It is a challenge, but can be worth it

Good luck

1 Spice up
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We do fixed fee IT per person per month, we add markup to hardware, but we justify the markup. with an add on to the email like this. It is NOT a small markup either. the equivalent of a few hours at almost double your consultancy fee per hour. (in NZ$)

we have had 4 computers drop shipped in the last year out of hundreds. This works for us, every quote.

New computers come with a base image, this image could be months or years out of date, and needs to be updated before it can be used safely on the network. The price for most of our computers includes having the computer updated with all the patches, software updates and version updates completed, if office is purchased, the correct version is installed and updated, before it even gets to your offices. We also test the hardware to make sure that everything works as expected. As part of the purchase price, we also manage the RMA process in the unlikely event that the hardware is faulty.

If this equipment has been drop shipped straight from the supplier, all work is completed onsite as directed, and time and materials is charged as appropriate, there is no prior testing and we do not manage the RMA process for you.

Those companies with XSYS IT Gold Support option do not pay for computer installation if the computer/notebook/tablet is purchased from us, with the complete installation package.

If you require office, then office 365 Business includes the following products. Microsoft Word, Excel, Outlook, Powerpoint, oneNote, and if you have a PC, then you get Access too. You also get 1 Tb of space on One Drive.

If you require email to go with office then Office 365 Premium is the next product up from the above, as well as the above products, there is also; an online exchange server, sharepoint server, Skype for business, Yammer and MS teams.

Office 365 information correct as at 1st October 2017 E&OE