Do I Know What to Charge as an IT Consultant? - Spiceworks ...

How Do I Know What to Charge as an IT Consultant?http://www.experts-exchange.com/ITPro/Consulting/A_1905-How-Do-I-Know-What-to-Ch...Page 10 of 134/3/2012others do not. Some may help desk services to their users while others do not. Truly, it's a VERY varied space.Recently, I heard it clarified this way -As a break/fix technician (who the above article really is targeting as well as those who hire them), theTechnician is paid to fix a problem - it BENEFITS the technician for the client's system to have a problem - theconsultant only makes money when the client has a problem. If you ever have your ethics questioned (silentlyor otherwise) by the client, the client might think you are sabotaging their systems so you can make money. It'salso an unpredictable expense for the client.As a managed service provider, offering, at least to some extent (you can put in stipulations, requirements,exclusions, etc), an all-you-can-eat maintenance and repair service for a fixed monthly price, the client has abudgetable price and the relative comfort to know that it's in your interest for you to keep their systems running.If they are paying you $1000 monthly for maintaining their systems and their systems go down, it comes out ofyour pocket, not theirs. So you are trying to find efficiencies to keep their systems running - and if the clientdoesn't have problems, they feel better.You'll always have clients that say things like "why am I paying you when things are working" -- and fromwhat I've heard, converting clients from the "break/fix" model to a managed fixed monthly fee model can bevery difficult - but new clients often like the predictability and those who "get it" will definitely appreciate theMSP model more.I'll conclude by saying that to address MSP pricing would require a book - not an article!Expert CommentExcellent article - Thanks!Very informative.I can't believe that medical insurance for a family is $12,000 in the US. I'm in Ireland and medical insurance formy family of five is $2,500. I suspect you guys are being seriously ripped off, and don't think for one secondthat the care you get for $12,000 is better than what I receive.Also: errors & Omissions insurance? I have never heard of it. I have public liability insurance for $1,000 whichcovers me for things like equipment I sell going on fire or buildings going on fire, or people getting injuredbecause of the work I do. This insures to a liability of a maximum of $9,000,000.Due to the nasty recession in Ireland, consultants are fighting like dogs to get work, so rates have dropped byabout 40% in the last two years, but our costs haven't!Author Comment