Computer Repair: How much should I charge?

repustech

I`m looking for input on what other computer repair businesses are charging. I currently charge $45 per hour for in shop repair and $65 per hour for service calls.
I live in an area with a population of 7000 and there are about 3 other competitive computer repair shops. Any input or advice would be great. Thanks

repustech

sorry about the double post.. the website had an error

BigHappy

I`m looking for input on what other computer repair businesses are charging. I currently charge $45 per hour for in shop repair and $65 per hour for service calls.
I live in an area with a population of 7000 and there are about 3 other competitive computer repair shops. Any input or advice would be great. Thanks

I had a business doing what you do and also had a grassroots beginning.  I buried the competition by having a lower rate, but by also showing my customers how to do their own repairs.  I would spend a little extra time showing them the basics (the ones that were interested) and if they really liked working on their own PCs, I would get them a gift subscription to a PC magazine that was in their realm of interest.  If they weren`t into being a techy I`d still get them a subscription for something that was interesting to them.
My rates were very reasonable but I wasn`t out to make a killing.  My business strategy was to create a customer base that could become their own first line of defense (and it worked).  I made my money on maintenance contracts and on data backup contracts.  As you probably know - when you start selling hardware or fixing other folk`s PCs on a regular basis it`s generally because they do things they shouldn`t be doing.  I found that a little extra education went a LONG way towards customer satisfaction. 
Plus, the people that need the help the most are the ones that usually can`t afford more than an hour or two of your time and even that hurts.  I found that I gained far more benefits by becoming someone that they trusted to consult with when they had questions - but wouldn`t necessarily get charged for.  The word of mouth from those actions brought me far more business level accounts than I could have hunted down on my own.
I know this sounds like it goes against everything you are doing, but you`d be surprised at the benefits you will reap by trying help your customer not need you as much.  You`ll find yourself doing a lot more high-end consulting without really eny effort at all.  Word of mouth is simply amazing. 
Depending on how you do your taxes as a sole proprietor, you`ll probably find that you can charge less and still make the same due to things you probably aren`t claiming.  Remember, for business related activities it`s 48.5 cents per mile in 2007.  Go to www.irs.gov</A> and do a search on mileage and you`ll see what the constraints are. 
Good luck and if you have any specific questions feel free to ask.

SecurityProfessional

I second the advice offered by tikki50 regarding flat rates. Customers love them because they know exactly what they will be paying for any specific task.
In the long run, you will also be better off with flat rates because you will earn more money as you become more efficient and are able to do things in less time.
The problem with straight hourly billing is that, as you become better at your craft, and make investments to make your operation more efficient, you are actually penalized because it takes less billable time to do certain tasks. With flat rates, your operation becomes more profitable as you become more efficient.
 

jimbodk

Also, if you don`t want to compete on pricing charge the same (or a little higher) than your competition, and provide some value-added services. (e.g. "Data Assurance", you guaruntee that the client`s data files will be recovered.)Pricing would also vary for residential vs corporate clients. You can charge more for corporate clients by giving their calls priority. You could also try working out tech-support contracts with companies in the area depending on your manpower.