Whenever you start looking at managed IT services, they all claim they give a full line of services at a "fair" cost. But, that begs the question, what is fair cost? In terms of general business practices, a fair cost typically denotes a cost that covers all costs even though also affording a respectable profit on top. It really is not about one organization taking advantage of the other one. It's about 1 company paying a fair cost for the services provided by yet another one. The second company is able to make a great profit without having gouging the very first 1.
One strategy to contemplate a fair cost is how you negotiate a contract for managed IT services. Some companies approach clients using the time and supplies pricing strategy. The client will pay the hourly fees for consultant function as well as the costs for software as well as other supplies. Additionally, the client would pay a premium on top to cover the consulting company's overhead and profit margins.
This strategy may well appear fair for the client. Even so, some consulting firms make the most of this situation. They might function a lot more hours than needed to complete a job. They may possibly charge retail for supplies when they actually paid wholesale. This may possibly cause the client to begin questioning every thing the consultant does. This can lead to bad relations between the consultants as well as the client. It does not supply a fair price for either among the companies involved in the contract.
What's a much better approach to figure out a fair price for managed IT services? A typical model utilized in the support world will be the "per user" or "per component" model. This kind of contract sets a monthly cost for services based on the number of users or hardware components in a clients' IT world. So, a client would pay $X per user on their network. If they hired a person new to the business, they know it'll cost them $X extra every single month for managed IT services. This keeps costs under control although also supplying the consulting company with fair compensation.
Every firm requirements to work out what is a fair price to pay for IT services. The contract ought to function for both sides of the equation. The client really should not pay too much but the consultant business needs to make a profit too. Each contract requirements to bring these two sides into balance.
One strategy to contemplate a fair cost is how you negotiate a contract for managed IT services. Some companies approach clients using the time and supplies pricing strategy. The client will pay the hourly fees for consultant function as well as the costs for software as well as other supplies. Additionally, the client would pay a premium on top to cover the consulting company's overhead and profit margins.
This strategy may well appear fair for the client. Even so, some consulting firms make the most of this situation. They might function a lot more hours than needed to complete a job. They may possibly charge retail for supplies when they actually paid wholesale. This may possibly cause the client to begin questioning every thing the consultant does. This can lead to bad relations between the consultants as well as the client. It does not supply a fair price for either among the companies involved in the contract.
What's a much better approach to figure out a fair price for managed IT services? A typical model utilized in the support world will be the "per user" or "per component" model. This kind of contract sets a monthly cost for services based on the number of users or hardware components in a clients' IT world. So, a client would pay $X per user on their network. If they hired a person new to the business, they know it'll cost them $X extra every single month for managed IT services. This keeps costs under control although also supplying the consulting company with fair compensation.
Every firm requirements to work out what is a fair price to pay for IT services. The contract ought to function for both sides of the equation. The client really should not pay too much but the consultant business needs to make a profit too. Each contract requirements to bring these two sides into balance.
About the Author:
Bensin Joseph is a Leading Project Manager for Tier 1 Techs. A South Florida Based Managed IT Services Company specializing in Managed Services. To learn more, visit http://www.t1techs.com today!
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