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Quote for IT work

BuckGup
By BuckGup
in General Discussion
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Hello, I was recently approached to convert a small business's computers to azure thin clients instead of having local installs and sharing physical devices. How should I bill them? Should I do an hourly estimate with rate? Or should I just do a lump sum that includes all? I feel I should cover any bases that include call backs or work outside the scope of what was asked. Thanks! 

 

Also, I know this depends on a lot of factors, but what should I charge? Historically I always undercharge people but I should probably pay myself accordingly. I was thinking around $1300-$2300 depending on the number of devices. I know other local IT companies and they would charge thousands and people are happily paying it. 

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Just keeping this here as a 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You need to setup the following before the work

- Scope of work (What is covered by you, what they expect)

- Number of hours project will take complete

- Use the calculation to figure out the fee

- Make sure to have some mark up there for any materials you may need

- Call backs should be calculated before hand. So hours of project is: Pre-migration, migration, after migration follow up. This way your time is covered everywhere.

- If after the project, you didn't use up the time alloted, you can mention you can help with some other IT project and move the hours to thatt project instead.

 

This is very rough advice, but should help you go in the right direction.

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charge them the market rate. if you dont know, you may want to research this up a bit. if you want market share, you are free to charge slightly below the market. if you are confident your service is of higher quality than the average or offers something extra they dont, you can overcharge slightly above. 

Sudo make me a sandwich 

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First I would figure out how many devices, are you getting all the hardware for them (Will you be having to handle warranty claims, etc later?) are you vending the software? if your just placing hardware and running cable, I would say 5 grand. If they are expecting more services after install, then that would go into a service contract, and would have to be negotiated in and of it self. There is a reason I have stopped being what amounts to a general contractor for technology 😉 Its a pain in the ass.

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Make sure you and the company work out specific deliverables that you need to meet.  Make sure there's an expectation of an hourly charge for any work added on that is not these deliverables.

Because these projects always dovetail with "small add ons" that add up to *a lot* of extra work.  Document the extras, and make sure you're billing the appropriate hours.

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On 1/10/2023 at 1:00 AM, BuckGup said:

Hello, I was recently approached to convert a small business's computers to azure thin clients instead of having local installs and sharing physical devices. How should I bill them? Should I do an hourly estimate with rate? Or should I just do a lump sum that includes all? I feel I should cover any bases that include call backs or work outside the scope of what was asked. Thanks! 

 

Also, I know this depends on a lot of factors, but what should I charge? Historically I always undercharge people but I should probably pay myself accordingly. I was thinking around $1300-$2300 depending on the number of devices. I know other local IT companies and they would charge thousands and people are happily paying it. 

I think it's wiser for you that you budget for full usage all day for the first available period. 

Then setup a plan based on actual usage data. 

When budgeting conservatively, it's less likely to encounter issues unexpectedly, and you can also benefit in cost-down solution based on actual usage data.  

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I handle some service billing at my job right now, and I agree with what everyone else is saying. It is important to get everything in writing and a contact set up. I have done independent contractor/freelance accounting work in the past and before you know it they are asking you to complete other tasks that you may not want to do. Having the work scoped and tasks you are willing to work on in the contract is a lifesaver. When it comes to billing and rate, it really depends on your relationship with the company. There is nothing wrong with billing them based on actual hours worked, this is common for independent contractors. You could bill out blocks of hours ahead of time if you are worried about them paying you. Other options would be weekly, bi-weekly, or monthly billing. And they may require 30-day terms on all invoices so it could be some time before you are paid, I would probably discuss this with them or their AP/billing department. In terms of rate, I currently bill out a professional network engineer in the $150 to $250 range depending on our relationship with the client and the work being done. I have seen general IT work anywhere from $50 to $100 to $125+ per hour (all US Dollar), it really depends on your experience/skill. Don't forget you will owe taxes on what you earn, so your rate should be higher than if you were employed by them.

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Fine print is your friend,  (it doesn't actually have to be fine),  It's what you can point back to when your client realizes they have made a mistake and expect you to do more than you quoted.  Shit like spelling out that if anyone can't remember their password for a particular account then that is not on you to find and restore it.  It seems silly but you would be surprised how much piss some people will take.

Grammar and spelling is not indicative of intelligence/knowledge.  Not having the same opinion does not always mean lack of understanding.  

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