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What Do You Charge for Tech Support?
war3rd asks: "Years ago I used to offer tech support for friends and family (for free), and ended up doing it for everyone they and I knew. I cut it out because it was taking too much of my time, but I've been getting more and more requests lately due to everything from viruses, spam, spyware, as well as aging PC with Windows 98 and ME (oog!) on them still. I was thinking of saying OK to requests that are convenient, but I want to make it worth my while. So I ask, I'm sure that some of you out there must do this, what is the general going rate for basic user tech support (i.e. getting someone's home machine cleaned up and back to normal email & web browsing capability)?"
"I assume that there is probably some range in different parts of the country, but I'm curious anyway. And let's just assume that I live in the Tri-State area around New York City (can you say 'overpriced?'). I figure I should be able to pull in enough to feed my ever-present desire for better hardware, but on the other hand, I don't want to be a jerk and gouge people who should be able to trust me with their machines. So what to other Slashdot users charge for their tech support services?"
In my professional life I've charged two hourly rate: $100/hr and $50/hr. I can't ask Ma and Pa Rancher/Farmer for that. I would think that undercutting what the area computer shops would charge would be acceptable. When I did service work at an Apple Specialist shop we charged a $45 bench fee for all computers and a $75 bench fee for all laser printers, just to take a look at them. Then our hourly rate was $50/hr. The markup on parts was anywhere for 40% to 200%. That was in '98. If I charged $15 or $20 an hour and maybe something for gas if I had to drive more than 5 miles or so, wouldn't that be agreeable with these rural customers? They'd have to drive 40 miles one way to get to the nearest town with a computer shop. With gas prices the way they are, that adds up fast.
One thing I don't hesitate to do is recommend buying a new computer. Most of these rural folks have ancient systems, at least by today's standards. If the machine is still useable and they understand that they can't run new software on the old machine, I'll help them fix it, even if it's replacing hardware like a bad HD. I highly recommend they replace the machine if they are trying to run new software on a circa '97 Windows 95 machine. It's just too old. I also never recommend the buying computers at the area Ma and Pa computer stores. I always recommend they buy from a larger company with an established reputation, support and warranty system, and will be here next month or next year when the machine has problems. I recommend Dell or Gateway to those people. I tell them about the back to school specials and help them find a system that fits their needs. I figure that's a much better suggetion than to tell them to go to Best Buy or CompUSA and pick up the special of the week. Sure the individual piece of hardware has a warranty, but if Ma and Pa Computer Shop closes up, they're not going to be able to find anyone else willing to figure out what's under warranty and what's not on an old machine. Thoughts on this?
I always set the folks up with some of the better pieces of free software like Mozilla or Firefox, Thunderbird, AntiVir, AdAware, and others. I tell Windows to auto-update without user interaction (something I'd never do on my own machine, but something that necessary on a novice's computer IMHO).
I'm not sure what the best price range is but I know one thing. We can't afford to do it for free all the time.
I'd agree that $20/hour is exceptionally low, and suggest that $50 be looked at as low as well. A few perspectives:
1. cost model: If you were doing this as a living, you'd understand that you'd have a portion of your time that you could actually be out billing, vs. a portion you're unable to bill. Researching things, fixing things for people that end up not paying, fixing things that you goofed up the first time and don't bill for the second time, and being idle are all unbillable times. While I've seen models where employeers pretend they can have people 80% or higher billable, this places great stress on the system long-term. At 50%, you're going to have to factor the downtime. So, if you want to make $50,000/year, at 50% billable (on 50 weeks worked), that's 1,000 billable hours a year = $50/hour (easy math). But you might find additional expenses you need to include, like taxes and social security (oops! there goes a huge chunk), health insurance, general liability insurance (if you do this, I'll guarantee you'll eventually have someone sue you for something assuming you have deeper pockets than they do) current and legal licenses to software, a new laptop every year (they get beat to hell traveling), Internet connectivity, cell phone bill, etc. - and you're suddenly up over $60/hour.
2. comparative model: My plumber in my small town charges $70/hour. I'd argue that my nonstop education in technology (vs. his rather static field) deserves at least $10/hour more, not to mention the college education appropriate for it. $80/hour is my "plumbing rate" in the Midwest. Fixing PCs or running cables = plumbing.
3. service model: If you're able to do much more than "computer plumbing", charge appropriately for the job. I'm a certified security analyst, so I charge $155/hour when doing assessments (cheap actually). I charge $125/hour for Cisco engineering.
4. "bill" your gratis accounts: I take care of some little old ladies and relatives in town. I let them know (and occasionally will print a courtesy invoice with the actual charge and credit applied) how much it really costs. I ask them to donate to a charity - the church ladies all do so to our church, and church has new gravel covering the parking lot, utility bills paid and other important things from a tiny bit of computer work from me.
The best thing you can do is enforce that the computer world is a business and a profession. I encountered a "do it for free" attitude when I moved here due to a 20-year-old hack that did so. When you give it away without any cost, you make it worthless and cause people to think what we do is not legitimate. Electricians, plumbers and other technicians all have to feed their families and pay their bills. Neglect your car and demand free repairs, and you'll suffer the consequences. Computer techs need to help the public understand their PC is no different than their car in this manner.
However, all of these clients were quite wealthy. I always tried to cater everything towards the client. Some of them weren't as wealthy and didn't pay as much. I told them if they didn't feel like I was worth the money, they should pay me what they felt I was worth - it was then my decision to come back or not the next time they needed me. I'm also a softie, so some people did get away with paying me very little, but I figured it all worked out for everyone.
I carried myself in a professional and friendly manner, so they continued to ask me to come back. When I told one of my clients that I was moving across the country, he asked if he could finance a business for me to run - that way I wouldn't have to move. I politely declined and he has since asked if he could fly me back to work on his computer.
Now, people where I live now aren't as rich as that - I do a lot of free work here, but I also explain to people that since I'm not getting paid, things may take me longer to get around to. I think most people realize that they get what they pay for - or don't pay for, such as the case may be. I also do a lot of bardering. I have one friend that I help with computer stuff and he helps me with my car maintenance.