Pricing IT Services
A COMPLETE GUIDE
Do you know how much it costs you to perform one hour of service?
If you’re basing your pricing solely on a market-driven
strategy, you’re playing a dangerous game. For example, if
your costs are $75 per hour but your market only supports
$50 per hour, either your costs are too high or you’re in the
There is no easy way to establish the “going rate” for
comparable services, because all services are differentiated
by other forces, such as individual processes, brand equity,
and features. If you’re going to price your services simply
based on the competition, you’d better ensure you’re
making an exact apples-to-apples comparison, which is
easier said than done and not something we recommend.
Consider instead, a model where your pricing is based on
how much it truly costs you to perform one hour of service.
In this eBook, we show you how to calculate your full hourly
overhead burden–so you can set the right price for your IT