Tiered pricing advice

[MasterRacker]

Not sure where else to post this so I'll start here.

I'm working with a small computer shop now, doing support for home users and small business networks. We're looking at adopting a tiered pricing model but not sure how to define the cutoff. We could charge differently based on number of network nodes or differently by P2P vs Domain network or somethig fuzzier.

Is anyone in a similar situation or doing anything similar? Just looking for advice/ideas. Thanks


Jeff
The future is already here - it's just not widely distributed yet...

 

[zbnet]

Why not charge according to the 'ability to pay', that is have some fixed scheme for home users (no fix, no fee) perhaps with some callout charge for evening/weekend visits(?), and have some proper rates for businesses you help (per hour billing?).

 

[jrbarnett]

MasterRacker

Just charge for time, ie so much per hour or whatever. That way, the more complex the problem is to solve, the more you get.

John

 

[MasterRacker]

zbnet
A pure 'ability to pay' model works in Europe for traffic tickets because they are punitive and they are trying to make sure everyone gets stung by an equal amount. In a commercial situaion where you are trying to keep someone's business, that's not going to work. CustomerA is going to talk with CustomerB at some point and find out he got 'screwed' and there goes your reputation.

jrbarnett
We are charging by the hour, but we're looking at a couple of different hourly rates, based on the 'complexity' of the network being supported. The question is how to determine that.


Jeff
The future is already here - it's just not widely distributed yet...

 

[jrbarnett]

The reason I say to just charge by the hour with no differences is that previous experience has taught me that is the best way to do things:

eg: a well run domain network which just works and only needs occasional tidy up (defrag, empty temp folder etc) won't take long, perhaps 2 hours total with 1 server and 10 pc's, but:
a standalone system, reported as "running slow" when I looked at it it was loaded with viruses, spyware etc. It ended up taking 4-5 hours. From experience, this situation is not unusual when you find somebody who doesn't take even basic security precautions and spends hours a day on the net and double clicks every attachment they get without thinking.

The setup on the latter system was far simpler in networking and system configuration terms, but took a lot longer to get working properly.

John

 

[robbieguy2003]

I agree John,

Possibly the best way to bill business users is to put them on a retainer (price it according to size).

Say for the retainer you will do x, that should be pay them a visit at least once a month and just check in on them and make sure everythings ticking ok.

If they use ADSL/SDSL make sure they have a static IP and maybe setup a VPN to their network & get terminal services or pc anywhere on their machines.

Its easy to get someone who doesnt know much about systems to reboot them but not to talk them through stuff as some people simply dont listen.

Try to get as much as you can do remotely, pay a visit once a month to let them know your their and help them if they get stuck.

HTH

Rob

Rob

 

[Zelandakh]

I would recommend 3 rates:

1. Home user. Just wants me to tinker while we chat.
2. Professional user. I have one computer, help me cos it is broken.
3. Corporate. Have servers, infrastructure and so on.

The corporates want follow ups, professional users need to be stopped from tinkering and the home users just know that something isnt right but dont know why.

1. Parts at cost plus beer and nominal cash.
2. $30 per hour (depends on location of course) plus parts at cost plus a bit. Call out charge if urgent.
3. $60 per hour plus parts at cost and extra bit. Call out charge of $30 normally.

If someone at home has a hosed system, they gotta pay for your time. Thing is, you can't expect someone tinkering with Windows 98 and no AV or firewall to stump up 5 hours at $60 an hour for a sysm reload...

 

[Stevehewitt]

Hey:

(UK Edition!)

I do a lot of SME and home user work, and to be honest its really really hard pricing people.

I don't agree with Zelandakh on the basis that you can't ask a customer if you are a power user or a home user. Sure you could find out the problem and then give them a price - but many people want to look on your website or flyer and see a price...Not a 'price depending on problem' message!

I would have a two tier:

1. Workstation / Home PC
2. Servers / Networking

Lets be honest - if a home user has no AV, and a 10 user SME doesn't update their DAT files - whats the difference? Servers are oftern more complex, so slap an additional 15% on your workstation / Home PC price.
The only problem really is do you charge by the hour, or per unit? Hours sound good, but if its a re-install of Win ME then your doing nothing for 1 hour anyway - is it fair? I use the per unit. Nice a fair that way.

You can then have a call out charge. So if people want to bring in the machine, it costs them less, but if its a business or networked they will probably want you to visit them.

Thats the way i've been doing it for the last 2 years, and customer seem happy with that. Hope it may give you a guideline as well!

Good Luck,


Steve.

 

[MasterRacker]

I can see both sides of the 'fairness issue'. On one hand, time is time, period. On the other, there are different levels of expertise needed for different kinds of support.

We currently have shop and on-site rates as well as service contracts that are individually negotiated. What we were thinking about was having 2 tiers of on-site for corporate customers based on the infrastructure being supported. There is precedent as I have been on phone calls where the rate escalated as I was handed off to a 'senior' engineer. Just trying to find ways to quantify things.


Jeff
The future is already here - it's just not widely distributed yet...

 

[Zelandakh]

Steve,
Sorry, I should have been more specific. Home user is separated from Home worker / this is my only PC but it is my business kind of professional user.

Otherwise you gotta have a covering price of something to make money and home users cannot afford your services.

 

[Stevehewitt]

Hey,

This if all of course IMHO:

I would strongly disagree. From a clients POV: "...Your telling me that you are going to be more carefull with someone's home business that my 80 Gb of MP3 and images that I do as a hobby?"

I really recommend using a 1 PC is £/$xx and 1 Server or networking unit (router / managed switch etc.) is £/$xxx.

Home consumers don't want to feel like they are getting a less professional service just because they haven't got business data on it.
And again: there really is very little between problems. Got a virus? HD went dead? Want to add a new mobo?
Doesn't matter from your POV who they are - it should be the task and service you base your tarrif on - NOT the customer.

Like I said, just IMHO! ;-)

Good Luck no matter what though.


Steve.

 

[MasterRacker]

In this respect, I agree with Steve. In our case, the shop rate is the same no matter where the computer came from. The on-site rate is the same currently whether it's home-amateur, home-pro, or business. The only thing we're considering tiering is higher end business on-site.

In a larger environment, you're looking at higher levels of expertise necessary and a higher level of responsibility (in dollar value of the system you're working on if nothing else.) Taht's our reasoning anyway.


Jeff
The future is already here - it's just not widely distributed yet...