Hourly rate - How much should i be paying?

[Quickline]

Hi there

I need some general it work doing in my office and was wondering what the typical hourly rate is for an IT guy to come in an sort me out.

I need sage 50 putting on a PC based server so that it can be access by 2 other computers , and also resolve some printer connection issues.

Thanks for your advice

 

[Adam.Vause]

We charge £40.00 an hour, industry standard is around £60.00 for a IT support firm.

Doesn't sound like that should take more than 2 hours

 

[Adam.Vause]

It could also be done remotely which should also reduce the costs

 

[Quickline]

Thanks Adam, I have committed to someone at £85 / hour to get this done, I did think it sounded a bit much!!! maybe I will contact you guys next time ??

 

[HarveyIT]

Mmm... that does sound a little steep. Let us know how it goes if you can.

 

[Faevilangel]

That can be steep but it depends on so many variables e.g.

- where they are based (London rates are more than Bristol for example)
- The size of the business - if it's a one man band it's on the high side but for a 200 person support company that would be ok
- experience - someone with Sage experience would charge more than someone who has never used it
- distance they travel - if they are having to travel 25 miles, this would be added into their costs

 

[Adam.Vause]

Thanks Adam, I have committed to someone at £85 / hour to get this done, I did think it sounded a bit much!!! maybe I will contact you guys next time ??

Absolutly just give me a call or drop me a PM and i would be happy to help.

eekk! I suppose your location also has a cost factor as Faevil said. Take for instance a company in London i would expect them to charge around £80-£100 per hour.

But its cheaper for all us northerners!!

 

[HarveyIT]

That can be steep but it depends on so many variables e.g.

- where they are based (London rates are more than Bristol for example)
- The size of the business - if it's a one man band it's on the high side but for a 200 person support company that would be ok
- experience - someone with Sage experience would charge more than someone who has never used it
- distance they travel - if they are having to travel 25 miles, this would be added into their costs

Yep, thanks for that, suppose I should have realised that one.

 

[Chris Ashdown]

Many sage agents would probably have given a better rate including free advice if you brought from a local approved agent

 

[iDynamics]

If you went cloud based the costs come down even further - because you can use staff from anywhere. Haven't SAGE launched an on-line version of their product? If not look at something like Xero or even Qbooks On Demand - that way you will find rates much more consistent. Of course its always nice to deal with someone you can look in the eye so we would still recommend finding a supplier that can come to you the first couple of times and from then on handle any requests remotely or outside of normal working hours.

 

[uk26]

I think £40 is way too cheep for an I.T Company to survive (unless you work from home and don't have an office) lets break this down to get a better understanding.

1 Hour @ £40.00 + VAT (GROSS £48.00)
5 Mile Travel expense -£4.00
Corporation Tax @ -£7.56

Net Profit £28.44 per hour or £227.52 (8 Hours)

--

1 Hour @ £80.00 + VAT (Gross £96.00 inc vat)
5 Mile Travel expense -£4.00
Corporation Tax @ -£15.96

Net Profit £60.04 per hour or £480.32 (8 Hours)


Now the customer would see an 100% increase from from £40 to £80 but the company profit would be up 111%


or look at this way

1 Hour @ £40.00 + VAT (GROSS £48.00)
5 Mile Travel expense -£4.00
Staff Wage -£15.00 + 11% NI Con -£1.65

total Company Gross Profit £19.35 =

6 Hour Workable day (allow for travel time) £116.10 per day * 20 days £2322

Office Rent say £500 per month, other bills £250) - all estimated now leaves you with £1572

Corporation Tax @ -£330.12
Net Profit £1241.88

Net Hourly income £10.34