Computer Service Contracts Can Raise Your Profit Margins

Computer service contracts are an excellent way for you to develop your business. Computer service contracts can give you more time to work on technical training, marketing, sales and other aspects of the business.

Acquiring new clients takes a lot of time and money. If you are constantly doing little jobs for new clients, you are probably maxed out on resources. Focusing on computer service contracts reduce the cost of getting new clients and help give you more time to get the sweet spot clients you need to further your business.

The Computer Service Contract Model

When you implement computer service contracts, you increase your overall profit margins because client acquisition costs turn into a smaller revenue percentage.

If it costs you $500 to get a new client, for example, would you want to get a client that pays you $1,000 per year or one that pays you $10,000 per year?

Computer Service Contract Model and Your Goals

1. If it costs $500 to get a client that pays $1,000 per year, half your margins will be already gone. You will only be realizing a 50 percent profit.

2. If you have a client paying you $10,000 that only cost $500 to acquire, you are getting a 95 percent profit, which can help your business exponentially.

Computer service contracts give you better profit margins and allow you time and money to go towards your marketing, networking and administrative costs. Use your money for network marketing, seminars, speaking engagements and targeted direct mail that give the best rates of return.

Computer Service Contracts: Build Your Business

If you base your business on computer service contracts, you will get stable clients and a predictable income. Spend time and money on marketing and networking activities that will give you high quality sweet spot clients.

Added By: Joshua Feinberg

Subcontracting That Garners a Profit

Subcontracting has to earn you a profit, or it is not the right choice. As a virtual IT provider, you have to think about how profitable your business is. You can’t use subcontracting until you think about costs and implement a structure that will help you make money with subcontracting.

Give yourself some room with service agreements to allow you to use subcontracting to complete specialty services. Those you find through subcontracting will probably have different rates than yours, so you have to be prepared.

Subcontracting: Estimating Each Project with Clients

Estimate services with clients per project:

1. Identify the subcontracting need;

2. Determine what needs to be accomplished;

3. Get a subcontracting estimate.

Once you have completed these steps, you can deliver the costs with a fixed price to each client. Allow yourself to work with specialty contractors that charge you more than you may charge the client. If you don’t do this, you could lose money in the long run.

Subcontracting: Mark Up to Regain Costs

You need to use a mark up in order to make up for costs related to the following items:

1. Recruitment;

2. Project management;

3. Scheduling and billing

4. Risk management.

A good rule of thumb to use for subcontracting mark ups is to add on about 25% to 35%. If you are paying subcontracting costs of $400, this means you would bill your client $500 to $550.

Subcontracting: Disclosure of Markup Costs

You do not need to tell clients about the amount of your mark up when it comes to subcontracting, and in fact do not even need to tell them the subcontractor charges any more than any other professional with whom you are working.

The Main Point About Subcontracting

Subcontracting can help accomplish specialty work for clients. Make sure you get paid for your time and energy when you are maintaining and selling subcontracting relationships.

Blogged By: Joshua Feinberg

What are the Benefits of Business Partnerships?

There are two main reasons for business partnerships: to fill a gap in skills; to add to a marketing campaign by giving you access to other professionals’ clients and increase your own client base. Business partnerships go both ways, so you have to make sure you are focusing on benefits to you and the partner.

There are four stages for analyzing all business partnerships:

Categorize Your Business Partnerships by Type

You should categorize the types of business partnerships with the following labels: accounting software experts (QuickBooks, Great Plains, etc.); Apple Macintosh specialists; CRM specialists; document imaging; legacy host systems; niche software experts (healthcare, hospitality, etc.); security experts; software developers; building of systems; wholesalers and distributors.

Identify Any Specialty Skills

You need to list what virtual IT products you are looking for with business partnerships and figure out which skills gap your potential partners fill. You can use this process as an opportunity to qualify the specialty skills a business partner should have to meet your clients’ needs.

Look at the Marketing Value

This step involves listing the kinds of clients that would be handled by potential business partnerships. Then you can describe the value you will get from business partnerships that give you access to clients. While you are examining these ideas, figure out how man of these potential business partnerships would bring you sweet spot clients.

Finding Business Partnerships

Next you should list the types of organizations potential business partners join and plan out conferences and news groups that you can attend to find potential business partnerships. After you start meeting decision makers you can unlock the many benefits of business partnerships.

Added By: Computer Consulting 101

Use Testimonials and Other Tools for Overcoming Objections

Overcoming objections in order to get to IT audits with customers and clients can be challenging, particularly when you are managing tasks that involve price. The two best ways for overcoming objections are testimonials and references, but there are many other tools as well.

Overcoming Objections with Testimonials

Sharing testimonials from well-respected business owners are a great way to overcome price objections. Testimonials that discuss the value of IT audits are the best. If you can get a case study from a client that discusses ways you recommended solutions over a long period of time, you can earn points with customers.

The most important thing to do to help with overcoming objections is to present tangible benefits, particularly those related to IT audits.

Alternative Techniques for Overcoming Objections

1. Ask prospects to call some of your reference accounts.

2. Sell IT audits as fixed-price entities, and not by the hour. This will help with your risk of losing income and also help clients not feel that their time is running out or limited.

3. Apply the cost of the IT audit to additional work you can do for them, including installation, upgrades or even a service agreement. Make this offer available for a limited time.

Overcoming objections that have to do with price can be accomplished with the help of satisfied clients. New contacts that hear about tangible benefits you’ve offered in the past are less resistant to IT audits.

Added By: Computer Consulting 101

Using the Computer Consulting Kit: XL PCWIZZ Consultants in Cape Town, Western Cape, South Africa

The Computer Consulting Kit is used worldwide by IT professionals that want to implement the best practices of business into the daily work they do with their small business computer consulting companies. The Computer Consulting Kit provides tangible tools such as templates for service contracts and rates structures as well as tested and proven rules and strategies for IT marketing and sales and time management.

The Computer Consulting Kit is a guide to any computer consultant that is looking to increase revenue, add value to their services and build important relationships that will sustain them through all levels of their business – from start-up to mature IT services company.

The Computer Consulting Kit: Peter Herrington of Cape Town and the Importance of Referrals and References

Referrals and references are some of the most important IT marketing strategies that any computer consultant can employ. Having positive references from trustworthy business people within the community can help build trust and a good reputation for a computer consultant. Good referrals and references can lead to even better clients.

Peter Herrington, owner of XL PCWIZZ Consultants in Cape Town, Western Cape, South Africa has learned the importance of referrals and organized, targeted references through practice and the advice of the Computer Consulting Kit. Peter has had quite a few big customers for several years, but he had previously not asked them for references. By asking long-term, satisfied clients for structured, positive references, he was able to communicate confidence in his services to the community and gain a higher profile in the community along with a more trustworthy reputation.

“In 2006 I finally got around to getting my big customers to give me a references. I also changed my company name to reflect the consulting aspect of my business. The Computer Consulting Kit helped me ask my long-standing customers for references and realize I was thinking too small and felt insecure about my skills. Changing my company name has helped me to be more focused to look at how I generate revenue.”

The Computer Consulting Kit: Focus Services and Get More References

Peter Herrington unlocked new potential for his business by asking long-term clients for references and refining his brand to target and secure better clients for his business. With help from the Computer Consulting Kit, consultants worldwide can achieve the same results and get the competitive edge they need to stay in business profitably for the long haul.

Blogged By: Joshua Feinberg

The Computer Consulting Kit: Service Agreements in Placerville, California

The Computer Consulting Kit has helped computer consultants understand the important business principles necessary to manage an IT services company. Computer consultants throughout the world have taken away important tips about marketing, sales, administrative operations and working with clients that have helped them grow their businesses.

The Computer Consulting Kit and the Importance of Service Agreements: Tony Snider of RTS Computer Services

Service agreements are an essential part of any computer consulting business and can help build long-term relationships with benefits for both clients and IT professionals. The Computer Consulting Kit provides important information about service agreements, including advice on how to structure the agreements and sample templates.

Tony Snider owns an IT services business, RTS Computer Services in Placerville, California. He has used the Computer Consulting Kit as a guide to constructing valuable service contracts and build relationships with clients.

“I signed up my largest client for a $2,275 per month service agreement. This made billing much easier, as I am there every week and keeping track of all parts and labor was a real chore. I was able to gain $30,000 in revenue thanks to ideas in the Computer Consulting Kit. Now we just invoice the same amount every month and only need to track the special projects and materials used at the site.”

The Computer Consulting Kit: Asking for Service Agreements

Like many other computer consultants, Tony found the process of asking clients to sign service agreements initially challenging. By sticking to the strategies of the Computer Consulting Kit, he was able to organize his marketing and sales techniques and open up the door to the Service Agreements model of doing business.

“The Computer Consulting Kit gave me the courage to ask for the agreement. I had been thinking about signing an agreement for years, but finally got up the nerve to ask the owner if he'd be interested in signing up for on-going support to simplify the accounting and also to solidify the relationship commitment.”

The Bottom Line About the Computer Consulting Kit

Tony Snider used the ideas in the Computer Consulting Kit to help with his service agreements and gain long-term, high-paying clients and increased revenue. He signed his fourth service agreement on January 1, 2007. Join Tony and other computer consultants that use the Computer Consulting Kit to help expand their businesses.

Added By: Computer Consulting 101 Professional Kit

What Should Your Minimum Be for Phone Support?

You should offer phone support as a part of your computer consulting business. Often phone support is a better way to deal with clients than conducting a visit onsite.

You have to charge for phone support, no matter what, but what model should you use? Get away from providing free phone support or even phone support that costs less than your other services.

How Should You Charge for Phone Support?

The best way to charge for phone support is by using the same model you’d use for onsite visits. There are costs tied to phone support that you must acknowledge, including the following costs to you: your time; the cost of a toll-free number; cell phone minutes; the cost of calling cards.

Establish a minimum charge for phone support, ideally a 15-minute minimum. If you don’t have a minimum, you will find that people will interrupt you at all hours for one or two minute requests to help with unimportant items. Spending three or four dollars on a phone support call will not mean much to clients; but spending $25 or more will get their attention and make them think more carefully about calling you for phone support.

Phone Support: How to Handle Calls That Exceed 15 Minutes

You can go about charging for phone support exceeding 15 minutes in a variety of ways. You can either charge by the minute or use pre-determined minimum increments. The ideal technique is set increments with every 15 minutes afterwards being a set amount of dollars.

Be Flexible with Calls Over 15 Minutes

Your best judgment can help you figure out what to do in situations with calls that total 16 or 17 minutes. If you are thinking about rounding up or down, think about the following factors: your prep time; your research time; the type of documentation you needed; the follow up you had to send to the client.

Blogged By: Computer Consulting 101

Subcontractors: How Can You Deal with Clients' Expectations?

When you hire subcontractors, you have to keep in mind that they are an extension of your business. You have to deal with clients’ expectations of subcontractors in order to keep up your level of customer service.

How Can You Deal with Clients’ Expectations of Subcontractors?

1. Be open about which services you and your in-house staff will be providing and which services will be conducted by subcontractors.

2. Restate your role as the virtual CIO and make sure subcontractors and clients know that subcontractors are simply occasional specialists.

3. Tell your clients the skills and background of the subcontractors.

4. Be clear about what the client can expect to get from subcontractors and what they cannot get. The subcontractors’ areas of expertise should be really clear from the beginning and relevant to the task they are completing with clients. Other IT issues should still go to you as the virtual CIO, even if the subcontractor on the job is on site.

5. Talk about your history and relationship with each subcontractor and the types of projects on which you’ve collaborated. Your client should get peace of mind from knowing these specifics.

6. New subcontractors should be announced to clients. Tell the client that you are still taking complete responsibility for the project and are working to make sure everything runs smoothly.

7. The client should know you expect the same level of professionalism, quality of service and amount of confidentiality from subcontractors that you expect from regular employees.

Because subcontractors are a specialized extension of your firm’s solutions, you have to be honest and up-front about client expectations to make sure you can deliver the best level of customer service and satisfaction.

Added By: Computer Consulting Kit

The Computer Consulting Kit in Frankston, Victoria, Australia

The Computer Consulting Kit has helped many in the IT industry get their businesses off the ground by providing tips and resources that can help organize any business plan to get more leads, better clients and improve revenue.

Computer consultants throughout the world have found that the marketing and sales techniques outlined in the Computer Consulting Kit has helped them to choose the best leads and even better clients during all phases of their businesses. With information about what IT consultants need during start-up and important tips about critical components of business such as service contracts, sales letters and time management techniques, the Computer Consulting Kit is a premier resource.

The Computer Consulting Kit: John Braakhuis, Computer Troubleshooters and Start-Up Secrets

John Braakhuis of Frankston, Victoria, Australia has been in business for himself with his own franchise for just a few months. With the help of the Computer Consulting Kit he has already managed to earn his first strong small business client on a service contract. The tips he took from the Computer Consulting Kit also taught him how to best market his business to targeted leads:

“I just started a new business in October 2006. I have a franchise with the Computer Troubleshooters Group and my aim is to focus on small businesses of three employees and up and then grow from there.

My biggest single accomplishment was my first business client. I provided the complete service including supplying new PC's, reconnecting their network, re-organising their e-mail hosting and supplying a reliable back-up service. The best thing was selling them a monthly service plan and having no resistance from them when doing this.

The best part of the Computer Consulting Kit was the emphasis on hot and warm leads; has definitely been my main source of income during the start-up phase.”

The Bottom Line About the Computer Consulting Kit

In just a few short months, John has been able to find better marketing techniques to sell service contracts and his unique solutions to businesses that can benefit. With the help of the Computer Consulting Kit he recognized that traditional mass-market advertising did not work for him and was able to correct a mistake that without guidance might have meant a real challenge for his business and potential loss.

Computer consultants looking for the best start-up tips and best practices in all areas of their businesses can turn to the information in the Computer Consulting Kit along with a variety of free resources and tips at the provided url.

Added By: Computer Consulting Kit

The Computer Consulting Kit in Elkins, West Virginia

Many computer consultants are unlocking the potential of their businesses by using the best practices and tools outlined in the Computer Consulting Kit. With templates to make elements of an IT service business like administrative duties, service contracts and IT marketing letters and campaigns simpler and more efficient, the Computer Consulting Kit is a premier resource for computer consultants throughout the world looking to grow their business and attract high-paying, long-term clients to sustain them for the long term.

The Computer Consulting Kit: Mike Gallogly and Mi-Tec Computer Solutions

Project management can be a tricky element to master at the beginning of the life of a computer consulting business. The Computer Consulting Kit provides useful tools to help those consultants with limited help increase their client base while still delivering the best service to existing clients when they just have themselves to run all aspects of their business.

Mike Gallogly is a computer consultant based in Elkins, West Virginia that just started his business within the last year. He started Mi-Tec Computer Solutions with very little in savings and was initially concerned about how he would be able to pay himself and manage subcontractors and client accounts while drumming up new business in a small town. The Computer Consulting Kit helped ground him and give him the reinforcement he needed to keep going.

What Mike Gallogly Has to Say About the Computer Consulting Kit:

“I've launched my consulting business this year and have been in operation for 9 months. With $2,000 in savings and a list of contacts the business has grown steadily and is able to pay my salary, rent, inventory, insurance and provide work for three other subcontractors. This is all done in a small town of 8,500 people nestled in the mountains of West Virginia.

Thanks to the Computer Consulting Kit, I have two of my 35 new customers on contract. At the end of this year, I plan to analyze each of my customers and get the larger ones on contract as well. I needed to get some idea of what they were willing to spend, what they have spent with me this year and future projects to come up with a monthly figure that works for both of us. The forms included were worth the money.”

The Bottom Line About the Computer Consulting Kit

The Computer Consulting Kit has helped Mike Gallogly and other computer consultants just like him organize their businesses. With helpful templates, tips and detailed plans for IT and computer consultants, the Computer Consulting Kit can help build the competitive edge necessary to succeed for any business.

Added By: Computer Consulting 101

Customer Service: How to Give Your Clients the Best

One of your most important daily goals is providing the best customer service to your clients. Companies with long lives have survived so long because they are known for giving the best customer service.

Tips for Delivering the Best Customer Service to Clients

1. Long-term clients are like a business family, and the relationship you have with them should be similar to a relationship with a friend or a family member. Stay on the best terms with long-term clients to give the best customer service.

2. When it comes to services, under promise and over deliver. You should also be good at figuring out what your clients need without having to ask.

3. Keep careful track of your work with checklists and notes for each client. This is a low-cost way to jog your memory about clients and add a personal touch as part of a customer service plan.

4. When working on systems in the absence of the internal guru or the main decision maker for the client, make sure to leave a summary note of your accomplishments. Make yourself available to speak to this person over the phone about what you did and make this known to deliver the best customer service.

5. When you complete a major upgrade, you should make a follow-up phone call or an actual visit to show you care about your work and your client. This amount of conscientiousness is at the heart of excellent customer service.

6. Customer service is not always about the actual service you deliver. You should show up with cookies, donuts, bagels or some other offering occasionally for no special reason to build a relationship with clients.

The Big Idea About Customer Service

Great customer service is not too hard to deliver. Spend more time with clients and on your work to make yourself stand out and build relationships.

Added By: Computer Consulting 101 Professional Kit