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What are the going rates ?

GLincolnGLincoln subscriber Posts: 1 Member
I have a new IT business here in Southern California.  I am about to negotiate business to service a counseling 

center for ALL of their IT needs ( web svcs, maintenance and equipment .  Is anyone else doing this for anyone.

I need help with charges for my services.


  • Tuah BaoTuah Bao subscriber Posts: 176 Silver Level Member
    There are 2 common ways  of billing your customers:
    1) Market price - see what your competitors are charging then try to match their prices. Simply do not overcharge or undercharge, because you want to make profit and customers to come back to you.
    2) Cost plus pricing - Mark up based on your cost. If you are paying $1000 salary to your staff, and you want to mark up 10%, then your price is $1,100.

    Option 3, combine the above 2 methods.
    a) If the market price is $1,500 for similar project then you can charge any price between $1,000 to $1,500 (instead of $1,100)
    b) If the market price is below $1,000, then you need to bring down the cost, because your price isn't competitive (unless there is a clear differentiation or better quality) 

    There are more ways on pricing your product/service. However, I will need to know your business goals (also mission and vision).
    Tuah Bao
    100+ done for you courses to immediately start running your own profitable e-learning business

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