Computer Contracts and the Hours-Bank Model

One way to sell computer contracts to your customers is to offer them your consultancy time on an “hours bank” basis.

Advantages

An hours-bank agreement may work for those customers who are likely to need blocks of your time, but are reluctant to sign up to a monthly agreement or retainer. Usually, you would suggest that a client pays up-front for a set number of hours (or perhaps days).

Selling hours-bank computer contracts can be more beneficial to you, as the service provider, than a true “pay as you go” model. It ensures you a certain amount of work and helps you to get the revenue in quickly.

Disadvantages

Selling hour-bank arrangements may work for you, as it does for many IT firms, but there are a couple of implications you should consider first:

• You must be very careful to clarify response times with clients, especially if you run a one-person business or one with limited staff. What, for example, happens if you have sold an hours-bank to four different clients, and they all call you with an urgent issue at the same time?

• Hours-bank computer contracts will not be considered as guaranteed income if, in the future, someone wishes to buy your business. Just because a customer has continually “topped up” with hours, there will be no certainty they will do so again. There’s no substitute for contracted, long-term support agreements when it comes to adding value to your business.

Do you offer hours-bank computer contracts? Share your experiences 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 IT Service Contract Secrets for Getting More Repeat Clients and Recurring Service Revenue.

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