Computer Service Rates – Aim High or Aim Low?

When you start an IT business, you need to decide whether to aim high or low with your computer service rates. Here are the advantages and disadvantages to each approach:

High Rates – The Advantages

1. High computer service rates mean than you have to complete fewer jobs to earn the same amount of money.

2. You may manage to attract prestigious or wealthy clients, who can afford higher rates.

High Rates – The Disadvantages

1. High rates may be out of reach for some clients, which can reduce the size of your target market.

2. It will be harder to sell services to new clients, who may be reluctant to pay high rates to a company with whom they have no working history.

Low Rates – The Advantages

1. Low rates mean that more new clients will be willing to try your company out, as low rates mean less financial risk in dealing with an unknown quantity.

2. Low computer service rates that undercut the competition give you a strong selling point upon which to market your business.

Low Rates – The Disadvantages

1. Low rates can attract “bargain basement” customers who may expect unrealistic service for their money.

2. If you set your computer service rates too low, it is hard to increase them significantly at a later date without upsetting your existing clients.

Consider these factors along with your knowledge of the local marketplace and your likely competition.

You may choose to pitch to the “luxury” market or go for volume. Either is a valid strategy, but so is positioning your computer consulting rates right in the middle—so don’t forget that option either!

How have you pitched your computer service rates? Share your strategies in the Comments below.

And to follow-through on the tips introduced in this short article, be sure to download your free copy of the special report on How to Start a Computer Consulting Business: 6 Proven Ways to Build Your Initial Client Base.

Creative Commons Image Source: flickr Marcin Wichary