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Following up on our previous blog post, we aim to address one of the most common inquiries from prospective clients: “What are your charges for IT services?” In our last post, we delved into the prevalent service models: break-fix and managed IT. In this post, we will dive into the specific fee structures.

Our price ranges are based on industry averages derived from a recent survey conducted by Service Leadership, a reputable independent consulting firm specializing in IT services. They collect, analyze, and report on financial metrics from IT service firms nationwide.

We intend to offer you a general overview of typical MSPs (Managed Service Providers) and IT services pricing. Understanding the substantial variations in service contracts before committing to any agreements is crucial. Please remember that the actual price is not the sole determinant; rather, it’s about what value you receive for your investment. Cheaper IT firms often hide the true costs, and the lowest bid may cost you significantly more in the long run.

With this context in mind, here are the fee ranges for IT services and IT support for small businesses in Northern New Jersey and New York City:

Billing-Methods-of-IT-Support-Companies-feesHourly Break-Fix Fees: Most IT companies offering break-fix services typically charge between $150 and $250 per hour, with a minimum of one hour. Some may offer discounted hourly rates when you purchase a block of hours in advance.

This approach suits microbusinesses with straightforward IT needs that do not involve sensitive data like health records, financial information, or personal identifiers like credit card or Social Security numbers. It is not recommended for growing businesses with five or more employees.

Project Fees: If you require an IT firm to provide a quote for a one-time project, the fees can vary widely based on the project’s scope and complexity.

When engaging an IT consulting firm for a project, we recommend demanding the following: A comprehensive scope of work defines the project’s success criteria, specifying expectations in terms of performance, workflow, costs, security, access, and more. The more detailed, the better, to avoid misunderstandings and additional costs later.

A fixed budget and timeline for project completion. Agreeing on these terms upfront aligns with your objectives and the consultant’s responsibilities. Be cautious of hourly estimates that allow billing for “unexpected” circumstances. A professional IT consultant should accurately assess your situation and provide a project quote based on their experience, factoring in contingencies.

Managed IT Services: Most managed IT services providers will quote you a MONTHLY fee based on the number of devices, users, and locations they need to support. The average monthly fee per user (employee) is $150 to $250. It’s important to note that these fees are subject to inflation and market conditions, particularly in a competitive IT talent landscape.
Quality varies with price, as is true for all services. “Operationally mature” MSPs often command higher fees due to their discipline and capability in delivering cybersecurity and compliance services. They typically include CIO (Chief Information Officer) services, dedicated account management, maintain stronger financial controls, and employ knowledgeable, qualified technicians rather than junior engineers or low-cost outsourced labor.

To clarify, we’re not suggesting that you must pay exorbitant fees for competent IT services. Paying more doesn’t guarantee accurate advice or responsive, customer-centric services. However, if an MSP is charging at the lower end, such as $150 per employee or less, it raises questions about what services they may be omitting or compromising on. They could be neglecting crucial security and backup services that are essential for your peace of mind.

If you’re ready to put an end to persistent IT issues, minimize downtime, and enhance your system’s efficiency, it’s time to reach out to us. We offer responsive, high-quality IT support from knowledgeable US-based technicians who are easy to collaborate with. Schedule your FREE initial consultation with one of our senior advisors by calling us at 973-575-4950 or visiting www.ibsre.com.

During this conversation, we can explore your unique situation, address any concerns you may have, and provide answers to your questions about our services. We are also pleased to offer you a competitive bid tailored to your needs.