Business Question

[Teallaura]

I would probably put together pricing for thirty minute and/or hour increments with a possible option of "teach me to use X" packages. I'm not sure how well we can help you put together actual numbers, but there are a few things you could do to get a better idea for what's appropriate. Obviously, the income level of your anticipated clientele is going to make a big difference. Existing competition (if any) makes a difference. I can't imagine there's a lot of competition, but you could probably look at tutoring, music lessons, etc as an indicator. Just at a guess, I'd think $20-25 an hour is probably the range I'd expect to see. It's not exorbitant, but it's enough that you feel like it was worth your while, too. One thing to consider is you're driving time. Depending on how close you are to your clients, you might want to have a small surcharge for in-home consulting to help cover travel time. It's not required, of course, but it's something to consider.

Thanks, that's pretty much what I'm asking. Each market is different, of course, so I am thinking in terms of 'what should I consider'.

[DesertBerean]

That's a great idea....it's true the older people want to connect with their grandkids...especially with pictures. When they started email service in assisted living places, they were instant hits for that reason.

Having a variety of packages like that will show them you're not a one pony show (is that the right phrase?)

[DesertBerean]

Yeah, and I don't every want to worry about "ok, maybe the battery is low".

Hmm... need to check my mouse...

[mikewhitney]

You could provide services -- um computer support -- on a 900 number

[Teallaura]

[Teallaura]

That's a great idea....it's true the older people want to connect with their grandkids...especially with pictures. When they started email service in assisted living places, they were instant hits for that reason.

Having a variety of packages like that will show them you're not a one pony show (is that the right phrase?)

It's actually 'one trick pony' or 'a one horse show'.

[Truthseeker]

Being an independent contractor running a business--Great!

However, it may be wise to apply first for a job from some of the computer businesses out there. Maybe then you will pick up on ideas to start the business, including local pricing.

[DesertBerean]

Too, you might want to look at and line up an accounting firm. Working for yourself means you will pay the FULL payroll taxes although you'll get to deduct half of that at tax time...also, you can set up a self employed IRA which I'm told has NO limit on how much you can put in... and other stuff you might need to know. In my town, self employed people use Stewart's Tax Service. So do people who need help managing bills (I never was able to convince my dad to use this..another story!). I believe they're a chain.

[Cow Poke]

That's a great idea....it's true the older people want to connect with their grandkids...especially with pictures. When they started email service in assisted living places, they were instant hits for that reason.

Having a variety of packages like that will show them you're not a one pony show (is that the right phrase?)

I remember years ago when AARP was trying to push "video chat" by selling a special telephone and service for home -- but it was only for the home, and your grandkids (or whoever) needed a similar device and service)

When I have showed "facetime" of some other video chat technology to older folks - particularly those who have the means - they quickly identify "hey, I can take that with me when we travel, too!".

There's just nothing like real time video when working with grandkids who may live on the other side of the country or world.

[Cow Poke]

Being an independent contractor running a business--Great!

However, it may be wise to apply first for a job from some of the computer businesses out there. Maybe then you will pick up on ideas to start the business, including local pricing.

The biggest problem with that is the extremely low pay without benefits that such a business typically pays. They know the "new guy" is wanting to pick up on ideas and start a business.

You could, however, call such businesses, and ask "how much would you charge to help me set up my checking account online" or "to help me figure out how to create an email account...."

[Juvenal]

But I don't have a good idea about pricing.

Thoughts?

I had a business consulting company in Chicago back in the 90s.

Quick rule of thumb: Charge $ per hour what you want to make in k$ per year.

Because 40 hours per week by 50 weeks per year is 2000 hours, and half of your hours spent will be un-billable ... or un-collectable ... making for 1000 billable hours, working full time. If you're posting fixed rates, you do the math yourself just as if you were billing hourly, based on how many hours it will take to do the job.

Good luck, Laura!

[Cow Poke]

I had a business consulting company in Chicago back in the 90s.

Quick rule of thumb: Charge $ per hour what you want to make in k$ per year.

Because 40 hours per week by 50 weeks per year is 2000 hours, and half of your hours spent will be un-billable ... or un-collectable ... making for 1000 billable hours, working full time. If you're posting fixed rates, you do the math yourself just as if you were billing hourly, based on how many hours it will take to do the job.

Good luck, Laura!

This reminds me.....

My BIGGEST problem in my own consulting business was BILLING.... I would work 60 to 70 hours a week, but when I sat down to invoice, I would have a hard time remembering where all I was, and what I all did.

Be SURE to have some system whereby you actually record and invoice billable hours, or your "collectible" hours will be way less than 50%.

Since I always carried my own notebook with me when I was at a client's office, I forced myself to get into the habit of emailing the customer (copying myself) a summary of the visit so I'd have some kind of record when I sat down to invoice.

Also -- be sure to stay "invoiced up".

[Juvenal]

This reminds me.....

My BIGGEST problem in my own consulting business was BILLING.... I would work 60 to 70 hours a week, but when I sat down to invoice, I would have a hard time remembering where all I was, and what I all did.

Preach it, brother ... but my worst headache was collecting, and not just because they didn't have the money.

One particular national bank ripped me for c. $10k on a job once. Division manager figured once he had the product, it was cheaper to blow me off, and wouldn't take my calls. He knew I couldn't afford lawyers. If he'd answered my calls, I'd have told him about the timer lock. I never game him the source code. It ran for another year and then shut down, I'm guessing. Wouldn't know for sure, because, well, I wouldn't take his calls. Not likely he'd have been steering new business to me, anyway, and less likely I'd follow up on anyone he'd steer my way, either.

Rule of thumb: Half up front for new business.

Be SURE to have some system whereby you actually record and invoice billable hours, or your "collectible" hours will be way less than 50%.

Since I always carried my own notebook with me when I was at a client's office, I forced myself to get into the habit of emailing the customer (copying myself) a summary of the visit so I'd have some kind of record when I sat down to invoice.

Also -- be sure to stay "invoiced up".

Speaking of lawyers, by necessity they keep up on the best software for billing phone hours. My info on that would be far out of date now, but that was also pre-google. Even if you're giving away the phone consults, put those hours on the invoice too. If you don't tell them you're doing something extra by that, they won't know.

[Cow Poke]

Preach it, brother ... but my worst headache was collecting, and not just because they didn't have the money.

After I got established, I was able to be much more selective about my clientele... I would tell them I only have two rules....

A) I want to work where I WANT to work.
2) I don't want to fight you for payment.

After about 3 years in business, ALL of my clients were prompt payers.

Funny story though --- I had ONE client - a lawyer, about whom I was warned "you'll never get paid".

He wanted a Novell Network, so I bid one for about 40% over what I would normally charge, figuring I'd have to fight him on the cost. Remarkably, he accepted my initial offer, and asked, "I suppose you need payment up front". (I didn't expect that, but, HEY, why NOT?)

So I DID get paid, but eventually he got behind on service, so I was trying to lose him as a customer.

One day his secretary called in a panic -- they had had a power failure, the server went down, and as it was coming back up, it needed a supervisor password. He had fired everybody that knew the password, so he was in a bind.

I went to his office, sat at the console, and just stared at the screen. He asked what was wrong, and I said, "the password is on the tip of my tongue, but all I can remember is that I have an outstanding invoice here for $1,356".

He got angry and said, "and I suppose you'd remember the password if you had that check!" I said, "it's coming to me!"

So, he had his secretary make up the check, and handed it to me. I started out the door (before entering the password) and he said "where are you going?" I said "I'm going to YOUR bank to cash the check, then I'll come back and enter the password".

So, I got paid and fired in the same day!!!! It don't get no better than that!

[Juvenal]

So, I got paid and fired in the same day!!!! It don't get no better than that!

Ha! I know that type. Wouldn't be surprised if he fired the secretary too, because she'd seen him get his. Folks who put ego in front of their business are everywhere. Had a senior manager try to get me fired because I didn't laugh at one of his jokes once. I'd put up with his incompetence for months, but I'd made sure to document it all, indexing every last bit of it with a business solution.

I inherited his parking spot.