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For my IT Tech Support company, what rate should I charge for a junior partner?

Posted on 2014-02-13
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Last Modified: 2014-02-17
I have my own business doing IT technical support.  Recently I brought on a more junior partner.  

Does anybody have experience with this?  I have an hourly rate that's published on my website, along with discounts for customers that purchase blocks of hours of my time.  I'd rather not publish a whole new rate structure for my partner, although he clearly won't accomplish as much as I can in the same time.

Obviously, lawyers charge a certain rate even though some of the work is done by their secretary.  Auto repair shops charge a set rate, regardless of which mechanic is working on my car.  But in this case it's a bit different, because I have personal relationships with my customers and my partner will be establishing his own relationships and wants to grow his business.

Suggestions?  Thanks
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Question by:Dwight Baer
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Jerry Miller earned 500 total points
ID: 39856469
I do some freelance stuff for a buddy that is in a similar situation. He sometimes has work that either he isn't good at or doesn't have time to mess with it. In those cases, he charges the customers that same rate and I get a lower one that we agreed upon. He gets that difference as sort of 'finders fee' for passing me the business.

While it is taking him a little longer, you could always knock a little off of the price. For example if there is a task that normally takes you 3 hours and he does it in 4 you could mark it down some so the customer doesn't think that you are taking advantage of them. Explain to them why you are discounting the bill so they don't think it will be a permanent reduction.
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Author Closing Comment

by:Dwight Baer
ID: 39864644
Thank you very much jmiller1979.  This was helpful.
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Author Comment

by:Dwight Baer
ID: 39864646
Sorry I forgot to close this.
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