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Tuesday, January 09, 2007

Use a Pricing Strategy Based on a Per PC Rate

When establishing a pricing strategy, you have to be flexible. Basing pricing strategy on time and materials is a flexible pricing strategy, but basing it on a per PC rate is also effective.

Issues Connected to the Per PC Pricing Strategy

The following challenges face the computer consultant using the per PC pricing strategy.

Scope

Scope in a per PC pricing strategy is not typically an issue. With a PC pricing strategy, when a business adds more PC’s, your price will increase. However, if you set up a yearly service agreement and the company adds some more systems, you may run into some difficulties.

You have to plan the inevitability of more systems into your PC pricing strategy. This can be accomplished by allowing for a change order that will allow you to increase the contract price if your client makes any changes.

What is a PC?

You can base your pricing strategy on each PC, but you need to be clear on what a PC is. Are you going to include only desktop PCs, or also notebooks and sub-notebooks? Are you going to also add PDAs? What if a user has a second PC? You need to count any machine that is going to add significant extra support issues if you want the per PC strategy to be effective.

What About Peripheral Devices?

If you use a PC pricing strategy for billing, you have to think about which machines within a business are going to cause extra support issues. What should you do about network attaches storage devices, printer servers, wireless access points, appliances, etc.? Each one of these items can produce unique challenges and can complicate the per PC pricing strategy.

The Main Point About Pricing Strategy

Pricing strategies focused on a per PC basis can work well with long-term clients. Make sure you have a change order procedure for additions and clearly define what you are considering a PC. Additionally, think about the extra challenges presented by non-PC machines and devices.

Blogged By: Computer Consulting 101