How Much To Charge For Fixing Computer
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About half of my IT work is residential PC repairs (I'm an independent contractor). Currently, I charge my residential customers a $40 flat rate for labor. Whether its removing a virus, reinstalling Windows, or swapping out a motherboard, I charge the same flat rate, regardless of how long it takes. I do charge $20 extra per PC to work on additional PC's for them. Am I charging them too little or is my rate an adequate amount? I've heard of techs charging anywhere from $25 all the way up to $300.
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60 Replies
WAY too little!! How do you justify your time at that rate?
Way Way Way too little. Compare yourself to Geek Squad... then remember that Geek Squad sucks royal donkey *#&% and you will agree... you need to charge more.
CreateITivity is an IT service provider.
I agree with Scott....way too little.
you should go to best buy and ask them how much they are charging for these services. Use there pricing template but markdown your price 15-20% in order to remain competitive.
When I tried this I started at 40 an hour and had no business. Changed it to 75 an hour and I was rocking. Seems people trust someone they pay more to because they must be better to charge more :) crappy logic but I will take it
I wouldnt even think about getting in my car for less than $50 an hour with a min of 2 hours pay.
And even thats considered low.
Undercharging the market definitely doesn't help. People want to pay for a sustainable service.rconboy64 wrote:
When I tried this I started at 40 an hour and had no business. Changed it to 75 an hour and I was rocking. Seems people trust someone they pay more to because they must be better to charge more :) crappy logic but I will take it
Most people would say you are low balling.
It depends on your skills and how you market yourself.
I really don't want the client that shops for the best deal on service.
They don't understand or appreciate what they are purchasing.
You have to apply common sense to all situations though.
I bill by the hour.
It tends to make me more diligent about what jobs I take on.
When you bill hourly, you look at some jobs and realize they are just not cost effective.
Like spending hours removing a virus for a home user.
I did this for a while. I charged around $45 for diagnosing and $35 for virus removal and additional a la carte services. It was coming out to about $80 per job on average. Most customers said that it was too little and would tip $20-$30.
When I do work on the side, I'll charge around $30 an hour. Most of the time I can fix problems within an hour... but if it comes to reloading windows or swapping a motherboard and/or CPU (which often will require reloading windows), it can take 2 or 3 hours up front.
I will talk with the customers and charge ~$15 or $20 to diagnose the problem, and estimate how long it will take me to fix it... If they want me to fix it, I'll skip the bench fee (The $15 or $20) and just charge them for the work I do.
$100 per hour, 3 hour minimum, plus travel and expenses. Your low rates devalue what we all do for a living, stop it.
You're charging too little. Have you compared your rates with other companies that do what you do? You never mentioned if you charge for going out to the client's site or over the phone support. Going out to someone's site costs time and money for you. This should be charged to the end client. Remember that you need to eat also...
One man shows are one man shows. If you want to expand your practice and hire staff, it's important to have something that has you stand out from the rest of the local providers. Also agree with some of the others here, you must know what other companies that do residential work are charging and what quality of service they provide.
Geek Squad would be residential mostly as well. They are one metric you can compare yourself to. What's most important is that each city is different. I live in Calgary where our rates are as high as New York. Places like Vancouver and Toronto are so much lower, I can't even pay a tier 1 technician what a tier 3 technician makes in those cities if I want someone that can think on their own.
Even starting with that type of work I would charge $80 for a flat hourly... that's with 0 experience. I'd probably charge over $100 an hour for a big job.
I usually charge individuals about $35/hour if it is on my time (person drops off computer to me, best effort to get back to them), $50/hour to go to their house, with a $100 minimum ( I hate doing house calls).
If I do side work for a business it is a different story. $75/hour minimum, more for weekends/emergencies and I make it crystal clear what/when I can fix, how to contact me, what is an emergency and that I have a real job that always takes precedence over their stuff.
Always remember that there is a PITA tax available. If someone is going to be a problem, get money up front. Charge more if someone is inconveniencing you.
RojoLoco,
I think it depends on the area. For a business, that is definitely an acceptable rate. For a home user, charging them $300 bucks to fix their computer is way over kill. The reason I have so many side jobs is because the local computer shop charges about like you would suggest. Nobody in my area can afford that... plus, I can do house calls and fix it right in the customer's house, and buld a relation ship with them.
I had a lot of extra side jobs come in due to word of mouth. If people like you and can afford to pay you, they will tell their friends. (note: I don't do travel outside of my local area).
$40 flat fee for a whole job? You're nuts.
When I was doing what you do years ago, we would take the going Geek Squad rates and cut them down by 15-20%. And they charge you about $150 *just to show up* before they do any actual work.
If you're spending a whole day on someone's PC and giving them the convenience of not having to bring it anywhere (remember, you *arent* working on other clients from their home like you would be in a lab) you need to be charging what that service is worth. If you're walking away from a job with anything less than a check for $250-300 or more you're wasting your time and your talent.
Nowadays when people try to throw me a case of beer or slip me $40 to fix their beater laptop after work, I tell them no. Stand your ground and make it crystal clear that your time and your skillset are worth way more than that. At what you're charging, they're flat out taking advantage of you.
Residential..ugh. You're a better man and I am.
If this is recreational that's fine, although i still think it's quite low (unless it's for grandma). If this is professionally, way way way too low. Geeksquad alone is what like 90$ just to diagnose? And obviously they don't exactly know what they are doing.
Also along with the job, most likely they'll want support afterwards that could be a call about "somethings not working right now." Don't cut yourself short, especially if you want to do this for a living.
I have a real job and fix residential computers evenings/weekends. I charge $35/hr and will include travel time if it takes more than about 15 minutes to get there. Probably 75% of my clients say my rate is too low and end up tipping. If I was doing this for my regular job the rates would have to be much higher but I figure my limited availability helps dictate the lower rate.
I have no problem in the Upstate NY area with 88 per hour
Typically I charge $70/hr for on-site work.
Cody Herb wrote:
If this is recreational that's fine, although i still think it's quite low (unless it's for grandma). If this is professionally, way way way too low. Geeksquad alone is what like 90$ just to diagnose? And obviously they don't exactly know what they are doing.
Also along with the job, most likely they'll want support afterwards that could be a call about "somethings not working right now." Don't cut yourself short, especially if you want to do this for a living.
I think we may need to step back and take another look at Geek Squad.
I realize that their AV people are entirely separate - but they fairly rock.
And my understanding is that Geek Squad is undergoing a major revamp.
There is a real need in the US for a nationwide org that can take on consumer PC work.
Geek Squad, for all their warts and track record, are about the only ones I see that have the potential to address this.
I know the local resource very well, and live in a fairly techy city.
But I only know of two local shops that I would trust to do any sort of decent repair work.
And someone not in the industry finding them?
Unlikely.
The interval at which the average american relocates is less than time typically required to luck into finding a good tech.
And if that tech is any good, he will probably be moving on himself.
If GS gets it poop in a group, they could make a truly obscene pile of cash before everyone switches to disposable Apple gear and the repair market vanishes entirely.
MFarazK wrote:
I agree with Scott....way too little.
you should go to best buy and ask them how much they are charging for these services. Use there pricing template but markdown your price 15-20% in order to remain competitive.
I wouldn't compete on price. It's a losing game. Charge the same or more and be better.
RobertFranz wrote:
Cody Herb wrote:
If this is recreational that's fine, although i still think it's quite low (unless it's for grandma). If this is professionally, way way way too low. Geeksquad alone is what like 90$ just to diagnose? And obviously they don't exactly know what they are doing.
Also along with the job, most likely they'll want support afterwards that could be a call about "somethings not working right now." Don't cut yourself short, especially if you want to do this for a living.
I think we may need to step back and take another look at Geek Squad.
I realize that their AV people are entirely separate - but they fairly rock.
And my understanding is that Geek Squad is undergoing a major revamp.
There is a real need in the US for a nationwide org that can take on consumer PC work.
Geek Squad, for all their warts and track record, are about the only ones I see that have the potential to address this.
I know the local resource very well, and live in a fairly techy city.
But I only know of two local shops that I would trust to do any sort of decent repair work.
And someone not in the industry finding them?
Unlikely.
The interval at which the average american relocates is less than time typically required to luck into finding a good tech.
And if that tech is any good, he will probably be moving on himself.
If GS gets it poop in a group, they could make a truly obscene pile of cash before everyone switches to disposable Apple gear and the repair market vanishes entirely.
Not to take over this thread, but geek squad is by far, the most horrible excuse for a tech company I have ever seen.
Their go-to-diagnosis is to restore from partition, and failing that, they throw up their hands and take your $300. I worked for them for 3 days before I quit due to their immoral attitude all the way up to management (screw the customer, just wipe the machine, who cares), not fixing easy problems and charging WAY too much for simple services.
They take advantage of people who don't know any better... little old grandma's and your mom. Revamp or not, their reputation is forever burned and non-recoverable as far as I'm concerned.
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How Much To Charge For Fixing Computer
Source: https://community.spiceworks.com/topic/546460-how-much-to-charge-customers-for-residential-pc-repairs
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