Building on our previous blog post, we are answering one of the most frequently asked questions we get from new prospective clients: “What do you charge for your IT services?” In our previous blog, we covered the two most common models: break-fix and managed IT. Now, let’s dive into the topic of fees.
The price ranges provided are typical for the industry and are averages derived from a recent industry survey conducted by Service Leadership, a reputable independent consulting firm that specializes in collecting, analyzing, and reporting on financial metrics from IT services companies nationwide.
Our aim is to give you an overview of the typical charges for MSPs and IT services and to highlight the VAST DIFFERENCES in service contracts that you should consider before committing. The most crucial aspect is not the actual price, but rather the value you receive in return for your investment. There are many ways “cheaper” IT firms conceal the true cost of their fees, and opting for the cheapest option could ultimately end up costing you a lot more than you initially expected.
Considering these factors, we have compiled the fee ranges for IT services and support for small businesses in the Houston area.
Hourly Break-Fix Fees: Most IT services providers typically price their break-fix services at an hourly rate, ranging from $135 to $225 per hour, with a minimum of one hour. However, there are situations where they offer a reduced price on their hourly rates if you purchase and pay for a block of hours in advance.
As mentioned earlier, this approach is most effective for microbusinesses that do not deal with hosting or processing sensitive client data like health records, credit cards, or Social Security numbers, as well as those that have simple IT systems. This approach is not suitable for a growing business that has five or more employees.
Project Fees: When requesting a quote from an IT company for a one-time project, the fees can differ significantly depending on the outlined scope of work and the complexity of the project. If you are looking to hire an IT consulting firm for a project, we suggest you insist on the following:
- A detailed scope of work that specifies what “success” is. Make sure you document your expectations regarding performance, workflow, costs, security, access, and other related areas. The more specific you are, the better the outcome will be. Articulating your expectations clearly at the outset can help avoid miscommunications and additional charges later, ensuring that you receive your desired outcome.
- A fixed budget and time frame for completion. By agreeing to this up front you ensure that both your goals and the consultant’s goals are in sync. Be cautious when dealing with hourly estimates that enable the consulting firm to invoice you for unforeseen circumstances. It is your IT consulting firm’s responsibility to be able to accurately evaluate your situation and provide a project quote based on their experience. You should not be held accountable for the expenses incurred due to a consultant’s inaccurate estimation or inefficiency. A true professional understands the importance of accounting for unforeseen events and billing accordingly.
Managed IT Services: The fee for managed IT services is usually calculated on a monthly basis, taking into account the number of devices, users, and locations that need to be supported. The monthly fee per user (employee) ranges from $75 per month to $275 per month – and those fees are projected to increase due to ongoing inflation and a competitive IT talent market.
Obviously, as with all services, you get what you pay for. “Operationally mature” MSP’s fees are typically higher because they are far more disciplined and capable of delivering cybersecurity and compliance services than smaller, cheaper-priced MSPs.
They also include CIO (chief information officer) services and dedicated account management, they have better financial controls (so they are not running so lean that they are in danger of closing their doors), and they can afford to hire and keep knowledgeable, qualified techs vs. junior engineers or cheap, outsourced labor.
To be clear, we are not suggesting you must pay top dollar to get competent IT services, nor does paying “a lot of money” guarantee you will get accurate advice and responsive, customer-centric services. But if an MSP is charging on the low end of $75 per user (employee) or less, you must question or research what they are NOT providing or NOT including.
Are you done with ongoing IT problems, downtime, and ineffective systems? Then it’s time you gave us a call and let us deliver the responsive, quality IT support you want with friendly, local techs who are both knowledgeable and easy to work with.
Click here to schedule your free initial consultation with one of our senior advisors or call us at 281-646-1200.
On this call, we will discuss your unique situation and any concerns you have. We will answer any questions you have about our services and how we might be able to help you. We are also happy to provide you with a competitive Scope of Work.
