Billing rates

[BO Terry]

So, my current billing rate is $100 for the first hour and $80 per hour for any additional time during the same visit. My question is, how far do you break down the additional time? I have been doing 15 minute increments but realized I've never checked to see what the industry standard is.

Similar for remote work. I've been thinking of going to $50 or $60 for the first half hour, and remaining time the same as onsite. $80 hourly, broken into 15 minute (??) increments if during the same session.

Of course, if the reason for the second onsite visit is due to something I should have brought or something of mine that failed, I can't penalize the client for that. Example, I went to a client site once and the power cord had been left out of the cloning device I carry with me.

Also, what is a typical rate (percentage above hourly? additional flat rate added? other?) for after hours or weekend calls?

**Edited:
Here is what I have started for responding to a potential new business client who is requesting my availability and rates. Their current tech support is a friend of the owner who helps them when he has time away from his FT job (not in IT).

"Onsite: $100 plus tax for the first hour at the location (varies by distance)
$80 hourly in increments for any additional time during the same session.
Remote sessions: $50 plus tax including the first 1/2 hour,
$80 hourly in increments for any additional time during the same session.
Rates above are for calls during normal business hours. Any materials or software requirements are additional"

 

[Phillip Manning]

My rates here in the UK are as follows:

On Site Rates:
£60 (+VAT) per hour for Business Customers
£60 (Inc VAT) per hour for Home Customers
Plus a call out charge, depending on distance to travel (Local calls are normally £12 +VAT)

Remote support Minimum charge of £15 for 15 min
- Home customers normally only get a £15 charge unless their problems take longer than 30 min
- Business customers pay for time used in 15 min blocks

Workshop Rates:
Service (Hardware tests, virus and malware scans\removal, windows and program updates, fitting parts)
1-2 working days £149 (Plus parts costs if needed)
3-5 working days £89 (Plus parts costs if needed)
5-10 working days £59 (Plus parts costs if needed)
Diagnostic charge if repair option not taken £39 (covers cost of Hardware tests and quick virus checks to identify problems)

Some of the business customers pay for support on a monthly/yearly basis, price would depend on number of computers, speed of response time etc. Support customers do get extra benefits, such as 10% off all bills, or First 30 min free on site, depending on what levels of support they are on.

*VAT in the UK is 20%

I hope this answers your question

 

[Markverhyden]

My preference is to have a trip charge based on radius then the onsite rate. My area is very sensitive when it comes to travel. Some places companies can do portal to portal. Not around here. Onsite is always a one hour minimum with .25 hour increments at the same hourly rate. For example. $25 trip charge, 10-30 mile or so one way, then $105, one hour minimum, 26.25 per .25 hour.

For remote it's the same hourly rate, just no trip charge of course. After all my expertise and knowledge doesn't change based on where I'm physically located. On the ID 10 T thing. If it's my fault it's no charge for labor.

If it's a project that I've done a paid survey I'll do a flat rate.

 

[callthatgirl]

I'm remote only. I change my rates often depending on how busy I am. I get a credit card before the job starts. I have agreements. Currently my hourly is $199 and 2 hours is $350 and 4 hours $599. One hour purchases are a full hour unless it's under 30 min, then I give a 30 min credit, this helps with upsells. 2 and 4 hour tickets can use the time in 15 min increments. I sell $350 tickets the most. I also know what clients will buy a 4 hour so they don't get the 2 hour option.

Since you are onsite, I'd think of doing 1 hour min and then pro-rate. If you can get them to buy a prepaid remote support ticket before you leave the house, you're the champion right there. I'd try to get a 2 hour purchase so they can call you with "quick questions". When you're about to leave tell them "If you're Googling a problem, it's time to call me" and that's how I have been selling upsells lately.

My latest pitch is this...it's on my website.

 

[BO Terry]

My preference is to have a trip charge based on radius then the onsite rate. My area is very sensitive when it comes to travel. Some places companies can do portal to portal. Not around here. Onsite is always a one hour minimum with .25 hour increments at the same hourly rate. For example. $25 trip charge, 10-30 mile or so one way, then $105, one hour minimum, 26.25 per .25 hour.

This is basically where I am, I just break it out differently. Early on, I had a few folks balk at the trip charge but didn't blink at a higher initial first hour. After that, I quit breaking out my trip charge as a separate line item. Confirmation helps, thanks.

Do you charge an extra after hours fee or higher rate for evening/night or weekend calls?

 

[BO Terry]

I'm remote only. I change my rates often depending on how busy I am. I get a credit card before the job starts. I have agreements. Currently my hourly is $199 and 2 hours is $350 and 4 hours $599. One hour purchases are a full hour unless it's under 30 min, then I give a 30 min credit, this helps with upsells. 2 and 4 hour tickets can use the time in 15 min increments. I sell $350 tickets the most. I also know what clients will buy a 4 hour so they don't get the 2 hour option.

Since you are onsite, I'd think of doing 1 hour min and then pro-rate. If you can get them to buy a prepaid remote support ticket before you leave the house, you're the champion right there. I'd try to get a 2 hour purchase so they can call you with "quick questions". When you're about to leave tell them "If you're Googling a problem, it's time to call me" and that's how I have been selling upsells lately.

My latest pitch is this...it's on my website.

View attachment 11187

Great ad! I like this idea of upselling blocks of time for remote sessions. I have a few clients who come to mind for this type package.

 

[callthatgirl]

Might as well get something while you're there, prepay tickets are great!

 

[BO Terry]

I'm remote only. I change my rates often depending on how busy I am. I get a credit card before the job starts. I have agreements. Currently my hourly is $199 and 2 hours is $350 and 4 hours $599. One hour purchases are a full hour unless it's under 30 min, then I give a 30 min credit, this helps with upsells. 2 and 4 hour tickets can use the time in 15 min increments. I sell $350 tickets the most. I also know what clients will buy a 4 hour so they don't get the 2 hour option.

Since you are onsite, I'd think of doing 1 hour min and then pro-rate. If you can get them to buy a prepaid remote support ticket before you leave the house, you're the champion right there. I'd try to get a 2 hour purchase so they can call you with "quick questions". When you're about to leave tell them "If you're Googling a problem, it's time to call me" and that's how I have been selling upsells lately.

My latest pitch is this...it's on my website.

View attachment 11187

Do you charge extra for after hours? Or at least post an after hours rate so that the option is there?

 

[HCHTech]

Might as well get something while you're there, prepay tickets are great!

How do you track those pre-paid tickets? If 6 months goes buy and that customer calls, what system do you have that let's you know up front that they have a prepaid?

 

[YeOldeStonecat]

We breakup into half hour intervals
For travel..we bill 1x way travel, plus expenses if there any such as train/plain/ferry, tolls, etc.

Yes for higher after hours costs
Yes even more for weekends
Yes even more for holidays

 

[callthatgirl]

@HCHTech I open 1 ticket in my ticket system called "prepay" and then I track the calls under that. Works great, I have done it for years this way.

 

[BO Terry]

We breakup into half hour intervals
For travel..we bill 1x way travel, plus expenses if there any such as train/plain/ferry, tolls, etc.

Yes for higher after hours costs
Yes even more for weekends
Yes even more for holidays

@YeOldeStonecat, Do you add a percentage to your regular rate for of these different scenarios or flat rate fee? If percentage, something like rate x 25% for after hours, x 50 % for weekend and x 2 for holidays?

 

[YeOldeStonecat]

.5x multiples for each step

 

[BO Terry]

.5x multiples for each step

Thank you!

 

[MDD1963]

We breakup into half hour intervals
For travel..we bill 1x way travel, plus expenses if there any such as train/plain/ferry, tolls, etc.

Yes for higher after hours costs
Yes even more for weekends
Yes even more for holidays

And if it is all of the above, i.e., an after hours, holiday weekend?

 

[Markverhyden]

This is basically where I am, I just break it out differently. Early on, I had a few folks balk at the trip charge but didn't blink at a higher initial first hour. After that, I quit breaking out my trip charge as a separate line item. Confirmation helps, thanks.

Do you charge an extra after hours fee or higher rate for evening/night or weekend calls?

I started out surcharging the first hour many years ago but switched to a trip charge and consistent hourly. Then I started upping the trip charge and haven't had any problems. But that all depends on your market.

I do charge higher rates for non-business hours for published prices. Almost all customer's suddenly decide they can wait a day or two until I can make it in after seeing higher prices. And they aren't that much higher. Maybe 20 - 40% higher hourly rate. LOL!!!

One technique I'll use the generate a higher effective hourly rate is to treat certain things as projects and price them flat rate rather than T&M. A common one is network wiring drops. After a paid survey I'll produce a flat rate price for the project. Many customers, especially business, like that. Of course planning is everything. As I've said many times, people don't plan to fail, they fail to plan. So my surveys are very thorough.

 

[DynaCentral]

I charge 60 dollars an hour for my services. No putting fees down after the first hour. It's 60 an hour. Homes AND businesses seem to be really fine with it! I'm doing quite good that I'm getting out there more. I get some call backs too, which is nice. 60 an hour feels like a very nice sounding number too. Not too low so I'm cheating myself, not too high so I'm ripping people off.

 

[ITechnify]

do you guys charge the same for server and workstation as well?

 

[DynaCentral]

do you guys charge the same for server and workstation as well?

Yes we do. Our services are 60 an hour regardless and then I have different priced monthly packages for small medium and large businesses. I take care of their computers and IT issues and make sure their business is optimized for efficiency on the computer side of things.

It works very well and I already have 3 businesses on the small business plan! I make one monthly visit in person for 2 hours on a scheduled date we both agree on and make sure everything is updated, flowing well, organized, dusted, cleaned, any questions they have are answered, I scan for malware and remove some, clean all registries and do some other stuff. Sure I could do it remotely but I prefer to visit in person. People like to see what's up and know what they are dealing with.

Every month I do this stuff the problems are non existent after a month or two if they had any before. I streamline, simplify and make their lives easier. I'm more of an IT service business now and really make sure things stay as up to date, clean and on the ball as possible.

I have already noticed all of this not even a year in and it's great. I'll do repairs and all of course! But my bread and butter specialty will be IT services manager. That's what I bring to the table.

It's not just about the money. That will come regardless. It's about the great experience and that's what I intend to be

 

[ITechnify]

1we charge according, worskstation is one price and server is another (higher)