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I am just starting an IT service/consulting firm. I have a Bachelor of Science and my business is a Microsoft Certified Small Business Specialist. I have been contacted by a lawyer firm that has in the past handled its own IT, but is moving to a new line of business application and they no longer feel that they can handle this in house.
They are looking for someone who can learn the new software and be the first line of support for the software and the IT support provider for the company. They have already decided and the software and have most of the required hardware in place through another IT provider that is unwilling/able to provide the LOB application support that the firm is looking for. During the initial phases of the contract there would be a large number of onsite hours needed, many of which would be learning the existing systems and the new systems in preperation for the cut over to the new software in 4-5 months. My question is whether or not it would be appropriate to reduce my hourly rate due to the fact that they will require me to be onsite 20-30 hours per week for at least some of this time. And if so, how much?
My gut feeling is that this size of contract should warrant some negotiation in price, but I don't really have an idea of how much. I don't want to overshoot and loose the contract, but I don't want to undervalue myself either. This contract would give me a large client which will help fund the business as I try and grow, but it also could make it difficult to grow if it takes too much time away from the rest of the business. It would also give a great foot into a vertical that could be very profitable.
I realize that this may not be the easiest question to answer, but I would appreciate as much discussion on the topic as possible.
Sterling McClung
20091021-EE-VQP-81 / EE_QW_2_20070628
