Retainer Agreement/Contract?

[lokiju]

My buddy and I are looking into doing PC support for a group of local businesses and I was thinking about pushing for a retainer contract so that I can keep a base income per month and then if our services were required an additional hourly rate would be charged.

I'm completely new to doing my own business and before I jump into this thing head first I would like to find out all I can from others that have done it or are doing it.

Also what is a fair or standard rate to charge business for computer services?

I'm looking at doing all computer services for the businesses from PC repair to networking but really am not to sure on where to start my rate at.

I'm thinking if it's just an hourly rate with no retainer then I'd go with $80+ per hour, but would like to get feedback from others that are already doing this.


Any info would help.


:beer:

 

[lokiju]

:crickets;


Does anyone have any good sites for this sort of stuff?

It seems pretty hard to determine whats a fair or competive price.

 

[lokiju]

I'm :shocked: not a single reply!


Damn I fail at the intraweb.

 

[lokiju]

TTT!

 

[DevilsAdvocate]

Originally posted by: lokiju
TTP!

I use retainers all the time as an attorney. You will have to have a lawyer draft one up for you for your purposes, but it should be a piece of cake.

Essentially, you will be requesting $X.XX per month, and you will bill against that figure at your hourly rate. You will have to have the other party agree to replenish the retainer when it gets below a certain amount.

Ever consider a flat rate deal? It might be easier for you.

 

[lokiju]

Originally posted by: DevilsAdvocate

Originally posted by: lokiju
TTP!

I use retainers all the time as an attorney. You will have to have a lawyer draft one up for you for your purposes, but it should be a piece of cake.

Essentially, you will be requesting $X.XX per month, and you will bill against that figure at your hourly rate. You will have to have the other party agree to replenish the retainer when it gets below a certain amount.

Ever consider a flat rate deal? It might be easier for you.

Such as a flat hourly rate? Or are you saying a rate of $xyz per visit no mater what is involved?

I was just thinking about the retainer contract as a way of assuring a flow of income for me but am not set on one way or another at this point.

 

[racolvin]

I am an IT consultant and I use the retainer concept as well, for the same reason you describe. The way I sell it is this: I'm trading a discount on my hourly rate for predictable cash flow per month. My normal rate is $125/hr, but for certain levels of retainer (I have 4), they get a certain percentage discount on that rate. The retainer payment builds up as a credit balance that I charge against as I do work for them. If I do enough work for them to completely consume the credit balance, I bill them at the discounted hourly rate. The credit balance can build for up to a year (just like Rollover minutes from Cingular) but at the end of the year, the credit expires and I get to keep it.

 

[lokiju]

Originally posted by: racolvin
I am an IT consultant and I use the retainer concept as well, for the same reason you describe. The way I sell it is this: I'm trading a discount on my hourly rate for predictable cash flow per month. My normal rate is $125/hr, but for certain levels of retainer (I have 4), they get a certain percentage discount on that rate. The retainer payment builds up as a credit balance that I charge against as I do work for them. If I do enough work for them to completely consume the credit balance, I bill them at the discounted hourly rate. The credit balance can build for up to a year (just like Rollover minutes from Cingular) but at the end of the year, the credit expires and I get to keep it.

This is exactly what I'm looking for, great info!

Can you give me more info on the retainer levels you offer? How do you determine your discounted percentage?

I'm to all this so any info helps.

:beer:

 

[racolvin]

sure thing... I"ll PM you