stevenvanheerden
asked on
Service Level Agreement
Hi there
We have started doing service level agreements about 2 years ago for customers.
i have been noticing that we are not making enough money or rather that we spend more time on the clients than what we get paid.
our model work on a per PC/laptop/server basis.
Example: we charge $150 per month to look after say 10 PC's on a network....fairly simple.
it includes all support except hardware failure.
i'm just not sure if this model works and if its the right way to do it.
what other ways/options are that i can use to make it more profitable and still be a win win situation.
your advice will be greatly appreciated
thank you
We have started doing service level agreements about 2 years ago for customers.
i have been noticing that we are not making enough money or rather that we spend more time on the clients than what we get paid.
our model work on a per PC/laptop/server basis.
Example: we charge $150 per month to look after say 10 PC's on a network....fairly simple.
it includes all support except hardware failure.
i'm just not sure if this model works and if its the right way to do it.
what other ways/options are that i can use to make it more profitable and still be a win win situation.
your advice will be greatly appreciated
thank you
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I wouldn't make a contract based only in the number of computers. If you don't put a limit of hours that can be used they will call you for every little thing that happens.
Try to sell time. A package of hours. Something like $1000 for each package of 10 hours. This is only an example. You need to find a value that fits for you.
Try to sell time. A package of hours. Something like $1000 for each package of 10 hours. This is only an example. You need to find a value that fits for you.
I believe the key here is whether you offer open-ended services for a fixed fee.
In this case you *are* offering open-ended services for a fixed fee.
I'd modify the approach to do something like this:
- For a fixed fee per month you will do things that are well-defined and valuable to the customer:
This would include checking on security software and other software updates and currency.
It could include checking the backup system to make sure it's working as intended.
It could include running specific scans.
... in other words all the stuff that the customers need but probably don't deal with themselves very well.
- Time and materials for everything else.
In this case you *are* offering open-ended services for a fixed fee.
I'd modify the approach to do something like this:
- For a fixed fee per month you will do things that are well-defined and valuable to the customer:
This would include checking on security software and other software updates and currency.
It could include checking the backup system to make sure it's working as intended.
It could include running specific scans.
... in other words all the stuff that the customers need but probably don't deal with themselves very well.
- Time and materials for everything else.
ASKER
Hi Guys
thanks a lot for your insights. so many different ways to approach this i guess.
i like all of your ideas and i can work with some of it.
i must say its hard to determine the value, especially cause we pride ourselves in a complete IT solution.
we look after almost everything and supply basically everything...from the internet connection, firewall, servers switches, routers, Access Points (some have as much as 20) right down to the PC/laptop/mobile device. all of that carries a responsibility.
i have been told one must work with billable hours as a guideline as well.
for instance 1 guy should clock 8 hours a day X 5 days = 40 hours X 52 weeks / 12 gives you 173 hours a month. now multiply that with your charging rate...i can tell you that i know we don't earn that.
can you guys maybe give me an example of how you would work out an average customer we support if this is the scenario?
Responsibilities:
Internet Connection
Router and Switch
UTM appliance like watchguard or Firewall like PFSense
Standard Server with perhaps 2 to 3 third party apps running
Exchange server onsite or hosted
20 Users with either laptop or desktop
10 Users with Mobile devices like Tablets or Smartphones
just a good guideline will really be appreciated and help me with making some important decisions.
thanks a lot so far
thanks a lot for your insights. so many different ways to approach this i guess.
i like all of your ideas and i can work with some of it.
i must say its hard to determine the value, especially cause we pride ourselves in a complete IT solution.
we look after almost everything and supply basically everything...from the internet connection, firewall, servers switches, routers, Access Points (some have as much as 20) right down to the PC/laptop/mobile device. all of that carries a responsibility.
i have been told one must work with billable hours as a guideline as well.
for instance 1 guy should clock 8 hours a day X 5 days = 40 hours X 52 weeks / 12 gives you 173 hours a month. now multiply that with your charging rate...i can tell you that i know we don't earn that.
can you guys maybe give me an example of how you would work out an average customer we support if this is the scenario?
Responsibilities:
Internet Connection
Router and Switch
UTM appliance like watchguard or Firewall like PFSense
Standard Server with perhaps 2 to 3 third party apps running
Exchange server onsite or hosted
20 Users with either laptop or desktop
10 Users with Mobile devices like Tablets or Smartphones
just a good guideline will really be appreciated and help me with making some important decisions.
thanks a lot so far
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SOLUTION
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ASKER
Hi Guys
Thanks a lot for your feedback.
i totally agree with you, the fixed rate will have to go.
thanks for your help in this regard.
kind regards
Thanks a lot for your feedback.
i totally agree with you, the fixed rate will have to go.
thanks for your help in this regard.
kind regards
Then, we bill the same amount on the 1st & 15th of every month.
There is also an understanding that we may be behind or ahead on the # hrs spent on their computers, but it all evens out over several months. If it gets too far ahead or behind, we then adjust the invoice accordingly.