Let me start out by giving you some information about what I have recently done.....
We host this local company that has all there office and home networking done by our company, they purchased 2 dedicated (managed servers) for mail, apache and dns. There both managed and have a 1M pipe shared between the two (With Cross Connect from there 1M to there Office location. They have our email contacts, pager information, emergency cells # and home and office phone lines if they need ANYTHING. Or they can walk to our office.
Now on average its $350 per 1M and $100 per X-Connect and their two Server rentals are $500ea. (Estimated)
It takes roughtly 5 hours to set them up..... (Covered by a $500 setup fee) and will take about 1 hour per month for managed time. I charge roughtly $50-100/per hour depending on the issue.
My question for the WHT clients or hosting companys.... What do you charge per hour or expect on managed and when you setup a "SET" price for managed servers whats the "ADD ON" for your time and do you set a "MAX" number of hours for the add on pricing.
My goal is too make sure im in the ball park and not over priced on managed solutions or *under priced
We generally specify a set number of hours in our managed dedicated server offerings as well as managed services.
Clients know up front whether they are paying for a package which includes x hours with the rest billed in 15-minute increments. Or whether they are paying y per hour off the top billed in 15-minute increments after the 1st hour.
$50 per hour can be quite low depending if a system administrator is performing the work or not.
A system administrator who has 5+ years of experience typically commands a starting (key word) salary of $50,000 per year plus full time benefits including sick time, personal time, vacation time, 401K (or comparable), etc.
That often adds up to a value of $67,000 a year ($50,000 base plus benefits et all) which translates into $32.05 per hour.
And given that most consultants are not 100% billable in terms of their time; a consultant is often told to take the yearly rate they desire and divide by 1,000 hours instead of 2,080 (40 x 52).
So then you have the full time server admin – working for themselves – who needs to pull in at least $75,000 (benefits are more expensive if you are just you, yourself and you) to make a similar salary they made when working for some one else.
And that $75,000 divided by the 1,000 billable hours translates to $75 per hour.
Lastly, we've seen managed servers per hour range from $75 (yes, I know their are people who charge less, but if in the U.S.... to me that's the same as $0.10 per month hosting or working at McDonalds and paying McDonalds for the fun to work there) to $350 per hour (we are towards the bottom range if that matters).
If you have a number of employees, you may want to have your accountant calculate their "fully burdened labor rate."
That is the least amount of money a given employee (and each employee would have different rates depending on their salary and benfits) has to bring in just to cover the cost of being in business.
You can then use that rate plus a profit margin to get the least hourly rate you can charge to make a fair profit.
Lastly, while your accountant should know this off the bat, beware of numbers based on 2,080 work hours in a year given holiday time, sick time, personal time, vacation time, and that even the rest is not always 100% billable.
Sorted out a few things for me, appreciate your time.
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