Mike - I'm in a sort of backwatery place with rent similar to what you're quoting, so I'll just throw this in:
If you're just getting started, word of mouth and reputation is very valuable to you - so if you can keep your prices low and give good quality, those people will talk about you. You can safely raise prices as the demand for your time grows. So, I do websites locally - my first clients did not pay a lot of cash, but I could not buy the kind of incredible advertising that they've provided for me. Now, when people are beating down my door and I have to turn down work - the prices go up. i.e. I'd rather take 5 jobs for $50 then one for $250. word of mouth is everything in smaller markets! If you can go cheap, you might find that people who wouldn't consider hiring a 'consultant'. Just some thoughts from another smalltowner :) J On 8/15/07, Mike Hammett <[EMAIL PROTECTED]> wrote: > errr, those rates are the new ones. > > > ----- > Mike Hammett > Intelligent Computing Solutions > http://www.ics-il.com > > > ----- Original Message ----- > From: "Mike Hammett" <[EMAIL PROTECTED]> > To: "WISPA General List" <wireless@wispa.org> > Sent: Wednesday, August 15, 2007 8:13 PM > Subject: Re: [WISPA] Managed IT Service > > > >I already did. ;-) > > > > I forgot the entire rate structure before... $35/hour in shop, $50/hour > > on site, $90/hour emergency. > > > > > > ----- > > Mike Hammett > > Intelligent Computing Solutions > > http://www.ics-il.com > > > > > > ----- Original Message ----- > > From: "Cliff Leboeuf" <[EMAIL PROTECTED]> > > To: "WISPA General List" <wireless@wispa.org> > > Sent: Wednesday, August 15, 2007 7:17 PM > > Subject: RE: [WISPA] Managed IT Service > > > > > > Mike, if you are to get a return on MY investment, don't short-change > > me! > > > > I'd rather you get the most return on MY investment that you can than to > > see it wasted on those that are not willing to offer me ANY return -- > > only to put their hand out for more... :( > > > > Go get em'. Make me proud! Raise your rate. :) I believe in you ... so > > should you! > > > > - Cliff > > > > > > > > > > -----Original Message----- > > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On > > Behalf Of Mike Hammett > > Sent: Wednesday, August 15, 2007 6:41 PM > > To: WISPA General List > > Subject: Re: [WISPA] Managed IT Service > > > > My family is fairly poor, so the state and feds picked most of it up. I > > > > should obtain the return on YOUR investment. ;-) > > > > > > ----- > > Mike Hammett > > Intelligent Computing Solutions > > http://www.ics-il.com > > > > > > ----- Original Message ----- > > From: "Cliff Leboeuf" <[EMAIL PROTECTED]> > > To: "WISPA General List" <wireless@wispa.org> > > Sent: Wednesday, August 15, 2007 6:07 PM > > Subject: RE: [WISPA] Managed IT Service > > > > > > "College just trains you to expect more than what you're really worth." > > > > Maybe you didn't LISTEN good enough in college! > > > > If you were listening, you would have heard what you should actually > > EXPECT was right on. If you are as good and knowledgeable as you state, > > then you are not charging what you ARE worth. The only way you would be > > "screwing" anyone at $80 per hour is if you didn't know what you are > > doing. > > > > There is nothing wrong with making money. > > > > Become more confident and raise your rate to what your market will > > support! You will be happier in the long run...You'll be happy you did. > > :) > > > > Obtain the "return" on your college "investment." It wasn't cheap I bet. > > Charge "what you're really worth;" just like they told you in school!!! > > > > - Cliff > > > > > > -----Original Message----- > > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On > > Behalf Of Mike Hammett > > Sent: Wednesday, August 15, 2007 5:01 PM > > To: WISPA General List > > Subject: Re: [WISPA] Managed IT Service > > > > Currently it is only myself, so I pocket 100% of it. I'll expand upon > > my > > thoughts not to defend my price, but to say where I'm coming from in an > > attempt to figure out if my current system won't scale or if everyone > > else > > is just screwing their customers. > > > > That said, I don't see how all of those things really add up to that > > much > > money. At $20/hour, that's just under $42k/year for a full time > > employee. > > Make that just over $43k after you figure in unemployment, social > > security, > > and Medicare. I only pay income tax on what I profit, so that's not > > part of > > the equation. > > > > Office space and use is pretty cheap. $250 for the whole office, I have > > > > options on other office spaces in the building. > > > > Most any problem can be quickly diagnosed and repaired, being able to > > include travel time within the 1 hour minimum. Otherwise, the $15/hour > > I > > make for beyond the included 3 hours surely pays for the $5 - $10 in > > mileage > > they would use (until I have my own vehicles). > > > > Everything is manual at the moment because there just isn't the volume, > > but > > I can't see the minute I spend entering into QuickBooks taking that much > > > > time or money to bill them, pay the employee, etc. > > > > There haven't been many things that I've encountered that I haven't been > > > > able to fix quickly. I know at least one other person that is about as > > smart as myself and they'd be tickled pink with $10/hour. I greatly > > prefer > > people that have gained their knowledge outside of formal education. > > After > > going through college, I would have only hired 2 people in my class of > > 30 > > (myself included) due to information absorption and retention rates. > > College just trains you to expect more than what you're really worth. > > > > etc. > > > > If we're going on 100 billable hours of work a month, that's 33 > > customers, > > assuming they actually need my services that month. I've only been > > doing > > this a couple months, but I really don't think I'll be needed much. > > They're > > paying for something they may not utilize, but have on reserve. 33 > > customers would be almost $60k/year. That leaves me $15k/year to cover > > all > > of those other, misc expenses. If I can't do that, I have bigger > > problems > > to deal with. > > > > Maybe I'll kick up my rates 25% or so, but $80 or $120/hour, IMNHO is > > just > > screwing the customer. > > > > > > ----- > > Mike Hammett > > Intelligent Computing Solutions > > http://www.ics-il.com > > > > > > ----- Original Message ----- > > From: "Clint Ricker" <[EMAIL PROTECTED]> > > To: "WISPA General List" <wireless@wispa.org> > > Sent: Wednesday, August 15, 2007 4:30 PM > > Subject: Re: [WISPA] Managed IT Service > > > > > >>I don't see any possible way that you're making any sort of actual > > profit > >>on > >> this (or even really breaking even) at this rate, unless you've got > > some > >> redicuously cheap labor.... > >> > >> Consider this... > >> If you're doing $40 an hour, and you had a full time person billing > > 100% > >> of > >> the time (ie 168 hours per month), then you'll max out for that > > employee > >> at > >> about $80,000 of revenue....you then have to pay taxes, mileage, > >> insurance, > >> etc... > >> > >> Now, take into account that a single full time employee doing this > > full > >> time > >> in reality will never do more than 100 billable hours a month... > >> This is from experience and even assumes that you're fairly > > streamlined in > >> terms of paperwork, supplies, travel routes, etc... > >> > >> This means, at $40 per hour, you'll only pull in $48,000 per year in > >> revenue > >> for that full time employee....assuming you have a streamlined > > operation. > >> There's no room in there to pay them, pay taxes, pay mileage, pay for > >> their > >> portion of office space (and other expense), pay for billing, pay for > > your > >> time in management, and so forth. > >> > >> I'd double it as a starting point if you're in a rural market, triple > > if > >> you're urban, and probably more for people who aren't regular > > customers. > >> Still, a lot does depend on your market and your business model. Are > > your > >> employees knowledgeable? Do they really know what they are doing on > > this > >> stuff, or are they just fumbling through... > >> > >> Keep in mind, as well, that small business consulting is not too > > different > >> from dealing with people in the home construction / repair > > industry--there > >> are a lot of people who just walked off the farm, so to speak, and > > claim > >> to > >> be in the business (no insult intended, and some of them do well). > > They > >> aren't always the best in terms of quality, and they aren't always the > > > >> best > >> in terms of professionalism. Most businesses that have some sense pay > > > >> more > >> to get better quality...in some sense, if you price yourself higher, > > you > >> price yourself into the good customers. You also give yourself the > > money > >> to > >> do it well... > >> > >> -Clint Ricker > >> Kentnis Technologies > >> > >> > >> > >> > >> On 8/15/07, Mike Hammett <[EMAIL PROTECTED]> wrote: > >>> > >>> Does this sound fair to all parties? > >>> > >>> My normal rate is $40/hour, with $80/hour for emergencies. > >>> > >>> I charge $150/month to manage a business's network. This includes 3 > >>> hours > >>> of support. I also will VPN into the network and ensure that > > operating > >>> systems, anti-virus, etc. are updated, which does not consume any > >>> hours. Additional support is available at $35/$70 per hour. > >>> > >>> > >>> ----- > >>> Mike Hammett > >>> Intelligent Computing Solutions > >>> http://www.ics-il.com > >>> > >>> > >>> > > ------------------------------------------------------------------------ > > -------- > >>> WISPA Wants You! 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