Fair Pricing Practices

We use fair pricing practices. We just feel good about treating our clients fairly in all regards, especially when it comes to billing arrangements. I think that is why many of our clients have been with us since the beginning.

Our bill rates aren't the cheapest, but they are not the most expensive. We set our hourly rate right in the middle of the market range. The lowest hourly bill rates can typically be found from single "IT guys" who operate from their homes, since they have no overhead, office space, procedures, systems, structure, etc. So, if your objective is to find the lowest hourly rates in town, we are probably not a good fit and you may be best served by a home-based IT guy. The discussion here about "Fair Pricing Practices" however, is not about hourly rates. It is about the billing arrangement. The way that monthly invoices are computed. The pricing practices.

You see, there are some interesting pricing practices in our industry. One common practice is called "pre-paid" or "bulk" hours. Firms that use this method sell you a bulk of hours, paid up front, and often times you pay for them if you use those hours or not. We are not criticizing anyone here, but to our way of thinking that is not a fair pricing practice. In which other service industry would you pay for hours that you don't use? I can guarantee you that I have never, nor will I ever, pay my accountant for hours that I never use. It just seems a bit crazy to us. And, to compound this unfair pricing practice, you typically have to pre-pay for these hours, possibly in exchange for a discounted rate. Now, you the customer have just lost your leverage over your service provider. Which is typically why, in all other service industries, you pay for services after they are rendered. In addition, since the provider has your cash already, what incentive do they have to work efficiently or to respond to you quickly?

Another practice that can be abused is fixed-fee pricing. Customers generally feel comforted by fixed fee pricing since it feels like it eliminates the risk.  But it doesn't.  Let's explain.  While fixed fee pricing isn't always abused you need to be careful. Here is how a typical scenario works. You ask your IT guy: how much will it cost to install this server?  He tells you, um, $500. Now, think about his incentive. Obeying the economic laws of self interest, he is incentivised to rush through the install taking shortcuts if necessary, in order to finish the job in the least amount of time. That way, he maximizes his profit as any student of capitalism would agree. The problem when applying this approach to IT is simple: when you rush you make mistakes and when you take shortcuts you sacrifice the reliability and security of your network. And, as you know, your network is your life and you should never sacrifice the reliability of the company network. Ever. Period.

In contrast to the above, we use fair pricing practices.  In a nutshell, it means you will only pay for the time you use and no more. We always do the job the right way because we focus on the long term relationship and the stability of the network, we do not focus on maximizing profit in the short term. If you'd like to find out about our rates and plans, visit our plans and pricing page, or contact us since we'd love the opportunity to talk with you.

Fair Pricing Practices