Continuing on from our previous blog post, we’re answering one of the most common questions we get from new prospective clients: “What do you charge for your IT services?” In the last blog posted, we discussed the most common models – break-fix and managed IT. In this post, we’ll discuss the actual fees.
The price ranges provided are industry averages based on a recent IT industry survey conducted by a well-known and trusted independent consulting firm, Service Leadership, that collects, analyzes, and reports on the financial metrics of IT services firms from around the country.
We are providing this information to give you a general idea of what most MSPs and IT services charge and to help you understand the VAST DIFFERENCES in service contracts that you must be aware of before signing on the dotted line. Please note that the actual price is not what’s most important but instead what you are getting for your money. There are a lot of ways “cheaper” IT firms hide the true cost of their fees, and the lowest bidder might actually end up costing you a lot more than you bargained for.
With that in mind, here are the fee ranges for IT services and IT support for small businesses in Minneapolis / St. Paul Metro and Western Wisconsin:
Hourly Break-Fix Fees: Most IT services companies selling break-fix services charge between $150-$200 per hour, with a one-hour to two-hour minimum. In some cases, they will give you a discount on their hourly rates if you purchase and pay for a block of hours in advance.
As we discussed, this approach works best for micro businesses that are not hosting or processing client data that is considered “sensitive,” such as health records, financial information like credit cards, Social Security numbers, etc., and that have very simple IT. This is definitely not the approach a growing business with five-plus employees would want to choose.
Project Fees: If you are getting an IT firm to quote you for a one-time project, the fees range widely based on the scope of work outlined and the complexity of the project. If you are hiring an IT consulting firm for a project, I suggest you demand the following:
- A detailed scope of work that specifies what “success” is. Make sure you document what your expectations are in performance, workflow, costs, security, access, etc. The more detailed you can be, the better. Clarifying your expectations upfront will go a long way toward avoiding miscommunications and additional fees later on to give you what you REALLY want.
- A fixed budget and time frame for completion. Agreeing to this upfront aligns both your agenda and the consultant’s. Be very wary of hourly estimates that allow the consulting firm to bill you for “unforeseen” circumstances. The bottom line is this: it is your IT consulting firm’s responsibility to be able to accurately assess your situation and quote a project based on their experience. You should not have to pick up the tab for a consultant underestimating a job or for their inefficiencies. A true professional knows how to take into consideration those contingencies and bill accordingly.
- A detailed list of what you want. This may be beating the dead horse a bit but if you are shopping around be sure you are showing this detailed list to everyone so when you get prices back you can accurately compare your options. I can't tell you the number of times I've gotten calls from clients shopping around and they don't even have a set list to give out for vendors to use as their baseline for the project prices. This is how less-than-reputable shops can reel you in, they know exactly how this works and will lowball the price upfront to get the work and then jack up the prices later once you've signed. This is true with break-fix and managed monthly accounts. So know what you want, have a list, and be sure everyone is bidding on the same thing.
Managed IT Services: Most managed IT services firms will quote you a MONTHLY fee based on the number of devices, users, and locations they need to maintain. The average fee per user (employee) ranges from $146.08 per month to $249.73 per month – and those fees are expected to rise significantly due to constant inflation and a tight IT talent labor market. The Labor prices to support the kind of people you want managing your technology comes at a very high price which is one of the values of outsourcing.
Obviously, as with all services, you get what you pay for. “Operationally mature” MSPs typically charge more because they are far more disciplined and capable of delivering cyber security and compliance services than smaller, cheaper-priced MSPs.
They also include CIO (chief information officer) services and have better financial controls (so they aren’t running so lean that they are in danger of closing their doors) and can afford to hire and keep knowledgeable, qualified techs vs. junior engineers or cheap, outsourced labor.
To be clear, I’m not suggesting you have to pay top dollar to get competent IT services, nor does paying “a lot of money” guarantee you’ll get accurate advice and responsive, customer-centric services. But if an MSP is charging on the low end of $146.08 per employee or less, you have to question what they are NOT providing or NOT including to make their services so cheap. Often they are simply not providing the quality of service you would expect and are leaving out critical security and backup services that you definitely want to have in place.
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, US-based techs who are both knowledgeable and easy to work with.
Schedule your free initial consultation with one of our senior advisors by calling us at 763-331-6227 or going to https://go.scheduleyou.in/ax2rS3r
On this call, we can discuss your unique situation and any concerns you have and, of course, 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 bid. Just have that list of what IT services you want so we can be sure to give you a comparable bid.
