Pricing IT Services

Do you know how much it costs you to perform one hour of service?

If you’re basing your pricing solely on a market-driven

strategy, you’re playing a dangerous game. For example, if

your costs are $75 per hour but your market only supports

$50 per hour, either your costs are too high or you’re in the

wrong market.

There is no easy way to establish the “going rate” for

comparable services, because all services are differentiated

by other forces, such as individual processes, brand equity,

and features. If you’re going to price your services simply

based on the competition, you’d better ensure you’re

making an exact apples-to-apples comparison, which is

easier said than done and not something we recommend.

Consider instead, a model where your pricing is based on

how much it truly costs you to perform one hour of service.

In this eBook, we show you how to calculate your full hourly

overhead burden–so you can set the right price for your IT

services.