Fees for IT services

[abiedadj]

Hi guys. I started an IT consulting business 3 years ago and i've been charging clients R850 per consultation anywhere in jhb but i feel like im working at a loss once i pay SARS(I qualify due to all the other small jobs i get but my overheads are little). can you guys please advise me what i can charge a company that has:
12 employees
1 server rack with 1 24 port switch and windows server that shares files amongst the employees.

Also how do i start charging for telephonic support. currently i'm not billing for it but seems im spending most of my time assisting them over the phone. I currently work alone from home, but would like to hire an intern to assist because the client stated above wants me immediate;y when the have issues and sometimes im in another province.

Also what kind of a retainer can i offer them?

So i need the following suggestions:
1. Hourly rate?
2. Daily rate?
3. Retainer fee + terms?
4. Telephonic support billing suggestions?
5. How much to pay an IT intern?

 

[ToxicBunny]

You need to work out a fair rate per hour, and get a company like that on a retainer where they pay a reduced fee for a set amount of hours per month, and that must included remote support.

 

[abiedadj]

You need to work out a fair rate per hour, and get a company like that on a retainer where they pay a reduced fee for a set amount of hours per month, and that must included remote support.

What im trying to figure out is a fair rate but the issues is that the client avoids discussing money so rather i go to him with a rate and tell him my new rates are going to be.

 

[ToxicBunny]

What im trying to figure out is a fair rate but the issues is that the client avoids discussing money so rather i go to him with a rate and tell him my new rates are going to be.

R350 an hour?

Your other option is get a rate from your competitors and then either match it or beat it.

 

[Lupus]

R350 an hour?

Your other option is get a rate from your competitors and then either match it or beat it.

The scary thing is they'd pay twice that amount for a plumber in Johannesburg.

 

[RedViking]

I think the first thing you need to do is look at you income and expenses and then decide how much you need to charge in order to keep the business going and also expand.

Maybe phone some other IT consultants and ask them how much their costs are and what service they deliver.

You can then decide if your fee is too small or too much.

As for the intern it depends on their qualifications and what they know I guess. Anything between R6000 to R12 000.

But I guess someone here that is in that industry will be able to give you a better idea.

 

[TheMightyQuin]

What we do:

Charge R495 excl. per hour for desktop support.
Charge R650 excl. per hour for server support.
Telephone support is billed in 15 minute increments, minimum 15 minutes.
Onsite support, minimum 1 hour AND a Call Out Fee of R225 excl.

Unfortunately SME's are struggling and trying to save. We've lost SLA clients recently, that are willing to take the risk to rather revert to Ad Hoc services, instead of paying a "retainer".

What exactly do you mean by "intern"?

 

[lowriderza]

What we do:

Charge R495 excl. per hour for desktop support.
Charge R650 excl. per hour for server support.
Telephone support is billed in 15 minute increments, minimum 15 minutes.
Onsite support, minimum 1 hour AND a Call Out Fee of R225 excl.

Unfortunately SME's are struggling and trying to save. We've lost SLA clients recently, that are willing to take the risk to rather revert to Ad Hoc services, instead of paying a "retainer".

What exactly do you mean by "intern"?

I charge a slightly higher hourly fee and in stead of a Call out Fee I charge AA rates. It's working so far for me.