Fixed Prices: Yes or No For Ongoing Computer Maintenance?
Fixed prices are often attractive to clients, but are they sustainable for the profitability of your computer business? When we start looking at fixed prices and ongoing computer maintenance the answer is, "maybe."
If you offer a fixed price for ongoing maintenance you would typically have sold them a network already and now you are taking care of it for x number of dollars per month. Your first instinct would be to also say you are offering this fixed price "subject to these restrictions." But, if you have just one paragraph let alone pages of "subject to" restrictions, this is a major turn off for any client.
So how do you protect yourself with fixed prices? You create a fixed price agreement that has a very tight scope to begin with. Rather than provide blanket coverage and then slowly take the blanket away with restrictions; give them only as much blanket as you have accounted for in your fixed price. The psychology changes: You are not taking away, now you are giving.
The other issue you must be concerned with when using fixed price agreements, is to maintain control of all moves, adds, and changes. You don't want the self pronounced computer guru at the company to start mucking around with your system. If they do, your fixed price will include the time it takes for you set things right again. To avoid this, you need to train the internal guru so he/she knows her limitations and knows when to call you.
Bottom Line on Fixed Prices Fixed price maintenance contracts can be done. Your challenge when using them, is to make sure you have covered off as many contingencies as you can up front. This way you don't end up having to set up restrictions later on or risk losing your shirt. Fixed price contracts are an attractive selling feature but the onus is on you to do everything you can to make sure the time you are spending is adequately compensated.
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Author: Joshua Feinberg
Author Bio:
Joshua Feinberg, co-owner of Computer Consulting 101, gets computer consulting businesses more steady high-paying clients. Now you can too with your free access pass to proven computer consulting secrets at www.Computer-Consulting-101.com
