IT Consulting: Consulting

by: leewPosted on 2009-07-28 at 20:54:58ID: 24967051

Good luck. I know of no such manual and, in general, I don't know how one could come up with one. Consider:

When it comes to software installation time for ANYTHING is dependent on the hardware components installed, the media used (with or without service packs), levels of customization, tools used to customize (for example, are you installing a Dell server with or without the server assistant CD), internet speed (can cause significant differences in terms of time it takes to apply patches and updates.

When I bill, I bill based on the time I think it should have taken me, not the time it actually takes me (as far as fresh installs go). I don't charge for learning unless the client has obtained software that I'm unfamiliar with (and it's not software that I might otherwise think I should know - a very industry specific program is software I shouldn't necessarily know; Quickbooks is software I should, at least as far as installations go).

You can grant times for installation of hardware - that's a closer analog to your vehicle to the dealer. You know installing RAM in a Dell 2950 server will take 15 minutes - like they may know a brake job on a 2004 BMW takes 75 minutes.

by: NicksonKohPosted on 2009-07-28 at 21:01:24ID: 24967077

When I first read your question, I was going to say there is no such documentation or books that can help you estimate the man-effort and time taken for IT work. It is so varied and there are so many factors of which competence of the programmer and project leader can it so difficult to judge. After a few encounter in EE, I am beginning to believe that the impossible can have answers!

But I gave internet a shot and shockingly I found that there is actually a book and a good one according to it's reviewer!

http://www.amazon.com/exec/obidos/ASIN/0387948686/

Hmmm... I am wondering if I myself should try to get this book and read.... At the same time, I am worried that it will make my hair turn entirely white!

cheers
Nickson

by: automationstationPosted on 2009-07-28 at 21:34:51ID: 24967204

As an IT professional, you could consider basing your pricing on the value of the job you perform. More like a dentist... he/she doesn't charge you for how long it takes to pull your tooth, there is a flat fee for pulling the tooth whether it takes 30 seconds or several minutes.

Consider pricing your work by the project and not by the hour.... basing your fees by the hour means you will make less the smarter you get and the faster you get at accomplishing the clients' tasks. Your IT background and experience should be worth something.

by: leewPosted on 2009-07-28 at 21:41:11ID: 24967227

I'm not opposed to project based pricing, but you need to be be aware of the hardware you're installing on. Installing SBS 2008 on a single dual core x64 CPU with 4 GB of RAM and slow 5400 RPM IDE drives will take a lot longer than installing it on a Dual Quad Core with 32 GB of RAM and an 8 disk RAID 10 with 15K RPM drives.

by: dportasPosted on 2009-07-29 at 06:32:50ID: 24969965

Quote a price based on your estimated effort to do the job. Anyone qualified to do the job ought to be able to make a stab at estimating it, or at least ought to know what questions to ask to narrow down an estimate.

by: MCSA2003Posted on 2009-07-29 at 12:37:42ID: 24973771

Thanks for all of your replies. It seems as if there is no "true guide" other than what someone has experienced in the past, or on the job training. One last thing I would ask. What percentage of markup do you pass on? Say tech 1 makes 25.00 per hour. Obviously I would not charge the customer 25.00 per hour, as I would not make a profit. Would you charge 100.00? Just curious.

by: leewPosted on 2009-07-29 at 12:55:19ID: 24973943

Depends on the "class" of tech and where you are. In New York City, a consultant typically charges anywhere between $100 and $200 per hour - sometimes more. But that can vary by geography and, frankly, I would vary it by tech.

for example,
If your client needs you to come and setup a printer or install office, just about any A+ certified (and most non-A+ certified but otherwise somewhat tech savvy) people should be able to handle this. I'd probably categorize this as a "Jr. Technician" type of job. And as such, probably charge (NYC rates) $75-90 per hour. Configuring a dual wan router would be more a "Sr. Technician" and probably run $150-200 per hour. And setting up a new PC on the domain and transferring user settings would probably be the "Technician" rate of $100-$125 per hour.

Unfortunately, questions like this aren't all that easy to answer. People have different expectations and fair pricing in different areas. I've heard in areas of texas, you can't charge more than $60 an hour... but in NYC, you DEFINITELY can charge $150 and get new clients (I just landed one two months ago).

I once did a little analysis (and will hopefully turn it into a blog in the near future) - factor in REASONABLE costs to operate a business (at least in New York/Long Island), including rent, advertising, reasonable equipment costs, internet access, phones, electric, one class a year, one conference a year, 2 weeks vacation, and a REASONABLE billable 20 hours per week, and BEFORE salaries, you need to make about $60/hour JUST TO COVER EXPENSES. Factor in a REASONABLY NYC/LI salary of $60,000 per year and your MINIMUM Hourly billing rate must be $120/hour. If it's just you. If you have other people working for/with you, you can probably lower that a little... but IT is expensive... especially the training - and keep in mind, when you're at training, you CANNOT be billing clients!

by: MCSA2003Posted on 2009-07-29 at 19:29:38ID: 31609062

Thanks for the replies

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