Set IT service rates to maximize your profits
Make sure your price is right with our Burden Rate Calculator
Setting prices for your IT services is challenging for most technology solution providers. Charge too little and you lose profit. Charge too much and you may lose customers. As attractive as it may seem to offer the most competitive rates, nothing is accomplished if you’re doing little more than breaking even – or worse.
Generally speaking, when setting hourly rates, your ultimate goal should be a 50% profit margin. But before you can make pricing decisions, you need a thorough understanding of your burden costs. How much does it really cost you to perform one hour of service, including everything from rent to labor? And what’s the potential impact if you increase staff or your overhead expenses change?
Our interactive burden rate calculator will help you determine your hourly overhead burden rate, and then calculate what you need to charge per service hour to achieve your desired profit margin.