jharbidge
2 posts Location:
n.a. |
04.07.2011 13:33 Re: Converting break fix to managed services - rates issue? Gaz,
£15/Hr... Are you serious??? You can easily earn 2-4+ times that as a plumber!
I'm not sure exactly what market you're aiming at, or in what part of the country, but £15/hr is far, far, far too low to even make the business worthwhile.
Maths lesson coming up...
52 Weeks - 2 weeks holiday = 50 Weeks
40 hours a week x 50 Weeks = 2,000 hours
2,000 hours x £15 = £30,000
Average UK male wage £30,521
(http://career-advice.monster.co.uk/salary-benefits/pay-salary-advice/uk-average-salary-graphs/article.aspx)
Assuming you're 100% productive and its just you you'll not even make the average UK wage. BUT you've not taken any account of the costs of running a business...
Your hardware, software, tools, rent, rates, Professional indemnity insurance, public liability insurance, advertising costs, book keeping, staff etc.
Next bit... Managed Services example...
For a 10 PC + SBS network you're looking to charge £400 x 10 + 1 x £100 = £500 per month
£500 / £15/hr = 33.333 hrs
Therefore unless you're needing to spend more than 33 hours a month every month onsite for the client they'll be better off sticking with break/fix...PLUS if you do need to be spending more than 33 hours a month onsite then there's something seriously wrong!
Our rates - and your market may vary...
Standard Hourly rate £70 + VAT
Monthly Managed Services AYCE + AV software -
Desktop / Laptop @ £35 + VAT
SBS @ £175 + VAT
Additional Servers @ £100 + VAT
So 10 PC + SBS is £525 per month or 7.5 hours
33.333 hours V 7.5 hours
I don't want to sound patronising - I hope I haven't, but you've sold yourself short at £15, thereby your clients won't value the work and you've got a big job convincing them to commit to 400 hours worth of work as opposed to the 90 hours we do to get the same job!
Put your prices up!
HTH
James
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smartit
1 post Location:
n.a. |
26.03.2012 18:49 Re: Converting break fix to managed services - rates issue? I'd agree, £15 per hour is far too low. I'm not surprised they're not signing up!
We charge £70 per hour in the North East, which is typical for an IT company here. Managed services we charge around £10 - £15 per PC, and £60-£80 per server.
So a 10 PC, 1 Server service would cost:
10 x £15
1 x £80
Total = £230
which works out at around 3-4 hours per month
For a freelance/new business £50 per hour seems to be the norm. You wont win everyone at that price, but you can rest assured you're covering your costs.
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