How much should I charge for IT services? | Microbyte

How much should I charge for IT services?

it consultancy

Perhaps the most frequently asked questions regarding IT are how much it costs and how much should I charge. 

We’ve worked with start-up IT companies to help identify their niche and price their services accordingly. But we find that these questions are not the most helpful ones to ask. Companies often get the best results when they ask; How much should I charge for IT support to sustain the business?

And we’ve got the answer.

How much to charge for IT services per hour?

Often IT technicians work at an hourly rate. Excluding technical work and large ongoing projects that may include a retainer or set services fee, hourly fees are the most general way to charge clients. 

Hourly rates vary greatly based on the client’s industry and requirements, the technician’s skill level and the region or area. To determine how much you should charge an hour for general IT support, compare your skills and qualifications against others. 

In the UK, approximately £120/hour is the highest hourly rate. In the US, general support could cost around $200 per hour. 

But this is where “sustainable business practices” become more critical.

How to ensure your pricing is appropriate

While working out an hourly rate based on your skills and the market is a good place to start, your price should reflect much more than a simple hourly fee. 

Before setting your IT support services fees, consider the following questions:

  • Are you set up to provide the best support possible? 
  • What do you need to invest in the business to be able to react to emerging threats and new technologies?
  • What are your overheads?
  • How many people does the business support?
  • What are you offering your clients?
  • How much money do you need to keep your business sustainable for future growth?

Your fees shouldn’t just reflect your current skillset and business services. They should reflect your plans for the future. 

A business’s rate must take the gross margin of its costs, savings, and revenue to dictate its charges. Within the IT industry, a company needs a gross margin of 50-60% of its turnover to reinvest in the future and cover overheads and associated costs. 

Calculating your charges to reflect an end profit of around 15-20% by the end of the year. With these margins and numbers, you should be able to charge a reasonable rate while preparing for sustainable growth. 

Not sure what to charge your clients? We can help. 

Finding a balance between charging a competitive fee and making enough to sustain your business takes time. IT support companies are often unsure of how to position their services in the market. We can help build up a stack so you can be confident in your charges per client and plan for a better future.

Get in touch today to discuss rates and learn more about sustainable business growth. 

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