# Computer Repair Business (What to Charge)



## YungRell (Jun 13, 2009)

Generally i'm branching off starting my new Computer Repair Business...Usually i work on site at clients houses, unless i have to bring they pc back to my house for more exclusive repairs. Umm i wanted to ask what would be a great price? 

Right now i have Fixed Price List as follows:

Virus/Spyware Removal $30.00
Software Installation $25.00
Hardware Installation $30.00
Operating System Repair $40.00
Full Data Backup $40.00
Data Recovery $50.00
Operating System Installation $45.00
Free Diagnostics
Housecalls
ETC......

I have more prices but some people say i shouldnt use a fixed price list. Generally ive been getting people telling me they love the fixed price list instead of hourly services. Others say i nee a Flat Rate Price for everything. Im really trying to get business and need other people opinions on this subject. Please Help???

What you guys think??


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## BosonMichael (Nov 1, 2011)

Customers will definitely love a fixed price list. However, a fixed price puts you on the hook for performing the service no matter how long it takes you... meaning, you could end up working for less than minimum wages. 

Let's consider an example where someone wants you to install some software, and you agree to do it for the flat rate of $25. What happens when the software won't install? Plenty of reasons why that could happen... old version doesn't uninstall cleanly, other software or hardware conflicts with the new software, malware preventing or slowing the installation, software requires an OS service pack upgrade (which may or may not work on the customer's computer), the software requires download and activation over a slow Internet connection... any number of reasons could turn this "quickie job" into a 4-hour nightmare. And at the end, you might not even get the software installed. Worse, you could end up leaving the computer in an unusable state.

Sure, you will have some uneventful service calls. But if I hadn't seen unexpected problems happen a LOT during my years in IT - enough to know that flat-rate jobs are a bad idea - I wouldn't take the time to warn you.

For what it's worth, I charge by the hour with a 1-hour minimum. If it turns out that I get stuck in one of the situations above, I'm not tied to a promise that I can't keep; I give the customer their options and they can make an informed decision as to whether they want me to proceed or not. And if I want to cut them a break on the rate after the job is done, I can do that. But my time is too valuable to commit to a variable-length job without proper compensation.

Your customers will also love your prices; you're pricing your services way too low, in my opinion.


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## YungRell (Jun 13, 2009)

Yeah you right boson but it seems like lets say if i charged $100 for virus/spyware removal people would not do business with me because everyone around here mostly charge that much. Most shops rates around here are like $60 an hour. But i guess i'm charging them to gain more experience in the field and plus i dont have any kind of A+ Certs. I told myself when i get my Certs yeah my prices will skyrocket. lol. Thanks for your Input. Wish u would of told me earlier before i put my flyers out. But since u said that Boson do you think i could get aways with stating like virus/spyware removal $30 bucks but thats for an hour or however long it takes me to remove the virus or spyware


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## BosonMichael (Nov 1, 2011)

People around there charge that much for virus removal because they can GET that much for virus removal. If you want to work for much less, by all means, that is your decision. But my time is more valuable than that.

Certifications will not automagically enable you to command more money for your services. 95% of your customers won't even know what an A+ certification is. They won't care as long as you can fix their computers.

You can charge whatever you want for virus/spyware removal. But I wouldn't do it for a flat rate, and you'll understand why when you start removing viruses for a job. First, it's rarely just one virus - usually it's a bunch of them. Second, virus scanners are great at finding viruses... but horrible at removing them. You'll sometimes have to remove them manually. Third, not every malware scanner is going to find every virus. Chances are, unless you use every malware scanner out there (which would be cost-prohibitive and time-prohibitive to do), you're probably going to miss one (or more)... and the problems are likely to come back. Fourth, when the problems come back (and they will, even if it's not your fault - after all, your customers got virused in the first place), your customers are going to claim that you didn't fix their problem... and you'll be back to their site/home to fix their problem again. 

The only way to be certain that a virus is removed from a system is to wipe the drive clean and start over from scratch... which means salvaging the data, wiping the drive, reinstalling the OS, reinstalling the software, and restoring the data. And that's quite a job for your $30 virus removal (or $45 OS installation) charge.

Not trying to bring you down or make you think that doing IT services is a bad idea... just trying to give you all the things you haven't yet considered, since I've "been there, done that".


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## Rich-M (May 2, 2007)

YungRell said:


> Yeah you right boson but it seems like lets say if i charged $100 for virus/spyware removal people would not do business with me because everyone around here mostly charge that much. Most shops rates around here are like $60 an hour. But i guess i'm charging them to gain more experience in the field and plus i dont have any kind of A+ Certs. I told myself when i get my Certs yeah my prices will skyrocket. lol. Thanks for your Input. Wish u would of told me earlier before i put my flyers out. But since u said that Boson do you think i could get aways with stating like virus/spyware removal $30 bucks but thats for an hour or however long it takes me to remove the virus or spyware


I don't think certification means anything to anyone except you. I charge an hourly rate and again a lot depends on where you are. In a metropolitan area $60 would be normal and in a rural area maybe $45. I charge a minumum 1 hour but I also let the client know I have set rates for certain jobs i.e. maximum 3 hours for virus removal regardless of how long it takes me. 3 hour for clean install of Windows would be another one. So I charge either the hourly rate if I use less than 3 hours or 3 hours if I go over and that includes if I make the wrong decision to repair. An example of that would be I try to save Windows but wind up doing a clean install later because it just doesn't run right. That is still 3 hour charge and that way the customer know the boundaries of price. I also give a telephone estimate free but of course I won't be held to that if any variables show up.


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## YungRell (Jun 13, 2009)

Okk thanks guys im learning alot. Hmm i guess really im selling myself short by all means. I guess with the price list i came up with i did not throughly thought the process out. Hmm i think i just messed myself up so bad about doing these types of prices.. Rich or Boson so do you think if for my prices thats just for the first hour of work. Then $10 hour after that then it will be ok?


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## Rich-M (May 2, 2007)

Too cheap. You will attract "nut jobs" for customers who will take advantage. I had a friend doing the same thing and he was charging $25 an hour and his customers were mostly "nut jobs". When he went to $35 an hour that all stopped. When we would exchange stories I always remarked I never had any odd balls like he did. I would never suggest anyone work under $35 an hour wherever they are. Don't feel you can't raise prices on some you have seen recently either or that they will tell others, so what. You have to keep in mind something I tell myself all the time. "This is a business"! Remember you do not have to sit in someone's home with an "egg timer" either. You can ignore 15 minute intervals or only charge an hourly rate over an hour, or charge 1 and 1/2 hours if you like. Do one will ever complain if you didn't charge them a full hour all though in the beginning I did have people often pay me more saying "that's not enough". That's your cue you are under charging.
One time last summer I was so busy and running so far out with appointments I started adding $5 an hour to every caller who asked price and I actually got to $70 an hour and no one said no because of it.


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## BosonMichael (Nov 1, 2011)

I agree with Rich and for the exact reasons he describes. In truth, few people will respect your work if you don't charge an appropriate rate. If I offered to mow your lawn every week for $2 per week, would you be skeptical of the job I could provide for such a low cost? Would you be confident that the job was done correctly? More importantly, would you be suspicious of my motives?

Do you know what I charge for my side jobs? $100 for the first hour and $50 for each half-hour thereafter (every hour is just as expensive as the previous ones). I can command that much because I have years of experience. But even when I was starting out doing work on the side, I was charging $50 per hour. Over the years, I increased to $60, then $80, and now $100. My clients are happy with the service I provide - enough so that they tell their friends - and they've kept me for years. Better yet, they don't need to call me every week or every month... because I've configured their systems to run smoothly. They appreciate that.

I don't charge for incidental phone calls here and there. They appreciate that as well. But if I spend an hour on the phone with them, I charge them.

I don't charge for mileage or for transit time. Some companies do. But my clients are relatively close. If they were farther away, I might consider it. 

If a job takes longer than expected, I sometimes cut the customer a break, particularly in cases where Rich described, where the time increases due to something I caused, such as an incorrect diagnosis. But I choose whether to make that decision or not; I'm not tied to a fixed price.

My advice: don't offer the cheapest service. Offer the best service at a reasonable price.


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## Basementgeek (Feb 7, 2005)

To be honest, you should made it an introductive offer, just to start out.

You could loose your butt on malware removal price.

BG


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## Rich-M (May 2, 2007)

> I don't charge for incidental phone calls here and there. They appreciate that as well. But if I spend an hour on the phone with them, I charge them.


I don't charge for phone calls either, no matter how long and I do have an 800 number, but I also do email tech support as well and I encourage that and never charge for that either.



> I don't charge for mileage or for transit time. Some companies do. But my clients are relatively close. If they were farther away, I might consider it.


Same here I never charge for either and at times I can be 35 miles away. But I do have a $5 higher rate after local mileage so I always ask where they live before I quote hourly rate.




> My advice: don't offer the cheapest service. Offer the best service at a reasonable price.


Boy do I second that!


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## YungRell (Jun 13, 2009)

LOL thanks guys im really learning alot right now. I guess i was sort of a fool for doing this. All i was thinking about was not hurting people pockets and in the long run im actually hurting myself. Hmm i know what im going to do about my prices. I wish i had you guys knowledge about the business.


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## Rich-M (May 2, 2007)

Not to worry this is a learning experience for me even now and as long as you are willing to learn, you will be fine.


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## BosonMichael (Nov 1, 2011)

YungRell said:


> LOL thanks guys im really learning alot right now. I guess i was sort of a fool for doing this. All i was thinking about was not hurting people pockets and in the long run im actually hurting myself. Hmm i know what im going to do about my prices. I wish i had you guys knowledge about the business.


That comes with time and experience.  You'll get there!


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