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Consulting Project Need Help With Fee!! 2

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May 2, 2004
67
US
I just met with a potential client a non-profit organization who needs my services. They have 25 computers at their location, they'll also be purchasing two more machines one to act as a server and one more additional workstation computer. They need me to configure the server as a file and printer server, setup an internal email system, install and configure software needed to ran from the server, setting up some type of security along with installing one or two network switches for everything to talk to each other.

I want to charge them based on this entire project, what would be reasonable but not too low for this type of work. This will probably take me two weeks to finish, not working everyday although maybe a couple days each week. Thanks for any tips.
 
Which country? Not everyone heres this Tek-Tips is USA only.

In Portugal I would charge 1000 Euros for that, while on the UK/Ireland I would charge 2-3000 Euros.



Regards

Frederico Fonseca
SysSoft Integrated Ltd
 
You could always call a couple local computer stores and see if you can get an estimate from them. Or at least get their hourly fees and use thse, along with your estimation of how long it'll take you, to get an idea of what to charge.

 
Thanks for the tips fellas I'm located in the USA "The greatest country in the world" lol. I did contact geeksoncall, their rate is $99 to 120 per hour. I'm going to check out a few other computer stores and see how much they would charge as mentioned before. I just don't want to go too low and also discourage them by being too high. I want to get right in the middle or a little higher than that.
 
Ah!. It's you again. I didn't notice your handle until after I posted. FYI the greatest world in the world is Portugal!!

I have just noticed the " non-profit organization " bit. Depending on what they are, you may consider giving a lower price, and try and get a maintenance contract with them.

Some " non-profit organizations " do deserve it, other's don't.

Regards

Frederico Fonseca
SysSoft Integrated Ltd
 
Yeah that's true your right, I was thinking about that. Thanks for the tips...

and by the way Go George W. Bush He's our leader if he can't do it nobody can!!!!
 
I'd suggest not initially offering a discount for the non-profit. You can later give them sonething off as a special discount if they feel your standard rate is too high.

 
I would not generally give a discount to a non-profit organization.

I can't speak for overseas, but here in the USA a non-profit organization is one that does not pay a dividend to its stockholders. This does not mean that they do not make a profit or that they are short on cash. Indeed I have a couple of non-profit organizations as my clients and they are cash cows.

Like Frederico says, some deserve it, some don't.

Software Sales, Training, Implementation and Support for Exact Macola, eSynergy, and Crystal Reports
 
When bidding the project, take an estimation of time and apply a rate. I then apply an 80% of worst case scenario - meaning: If I assume something will take between 20 & 30 hours, I will bid 28 at my highest rate.

This gives them a fixed bid, gives me an incentive to work quickly and professionally to optimize my income but also allows for some research or tweaking without losing money.

Also, include a section on assumptions. Those assumptions should include a reasonable expectations that current systems are working properly, do not have major config or hardware problems, and that those who make decisions at the company will be available to answer questions in a timely fashion. All of these can impact project time and should be billable to correct.

Also, negotiate upfront the billing schedule/payment schedule and/or terms.

I take (for less than 1 month of work) a 50% work initiation fee (on professional services only, not hardware software which the client pays at the start).

I then negotiate 10 day payment terms.

I give them all the necessary tax information (either social or tax ID at the start of the project and ensure I am setup as a vendor with their acocunting folks).

Hope this helps.

Matthew Moran
 
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