Thursday, June 12, 2008

Pricing

The way I look at pricing is simple, keep it cheap. Computer repair prices today have gotten to the point where it’s almost cheaper to purchase a new machine then to have your old one repaired or upgraded. When it comes to people paying me for computer repairs, they’re not paying me for the actual labor, but for the knowledge I have. When you get right down to it, computer repair physically seems easy, but it can be a strain mentally at times. Because computers advance so quickly and so often, I’m learning new information almost every day in order to keep up with the ever changing computer demands. Big retail stores charge a lot because they can. Small town computer businesses tend to charge a lot because they have to. They have to charge more than I do because usually the store front they’re renting costs $1,000 a month. They also have additional costs such as inventory of products, software and hardware, and utility bills. When you have to overcome those costs before you even make a profit it’s no wonder their prices are high. I keep my prices low because I learned that if you advertise just right you don’t need a store with a big sign. Since I work out of my home office, I don’t have the cost of a store front and my utilities are a constant rate. If customers are willing to wait 48 hours, I can find them the best deal on computer parts or software. I don’t put an extra charge on the computer supplies I purchase. Only because I’m required, by law, do I charge sales tax on hardware and software supplies. I charge approximately $30/hr. I say approximately because it often depends on the type of repair I’m handling. I’ll often charge less than $30/hr if the repair is simple, or takes little time. When I worked for a computer company, before I opened my own, I was forced to charge customers $80/hr. Now I have my own business and lot of computer training, but in no way do I feel right about charging someone for an hour, what they may have worked an entire day to earn. All I want to do with my business is provide the fairest and least expensive prices I can while earning a living so, I’m able to continue to do what I have spent my life learning and what I love. I like to think of computer services much like car repairs. Most people don’t know if they are being fairly charged, but once you have a mechanic you trust then you don't want to go anywhere else. At least that is what I'm betting on.

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