Why You Should Avoid IT Support Services with Base Plus Pricing
Cost Transparency | Small Business

Why You Should Avoid IT Support Services with Base Plus Pricing

Our fixed-rate pricing is a very different pricing model from base plus pricing, which is what most other IT consulting companies use. Base plus pricing is a low-ball “base price” that only covers license costs for software installed on your computers. This pricing structure allows IT services and solutions to charge you extra fees for additional services. We’ll break it down for you.

Base Plus Pricing Breakdown

Pros

  • This type of pricing works well for less dynamic industries. Companies that use simple systems, have few IT support needs, and have computer-savvy users may achieve overall lower costs on a “pay for only what you use basis”. Companies like this tend to be especially tolerant of downtime.
  • Acquisition of hardware and software can be a simpler process for the customer despite being much more expensive. 

Cons

  • Pricing is highly variable month-to-month and difficult, if not impossible, to predict.
  • End-users are discouraged from calling to ask for help because it costs extra. This can exacerbate problems, causing them to accumulate, and increase the chances that your time will be wasted on workarounds.
  • The clock is ticking on every repair, leading to rushed work and incomplete band-aids. You never get out of the “break-fix” cycle.
  • Margins on hardware, software, and even monthly licenses are hidden from customers and create incentives to push unnecessary expenditures.
  • Engineers tend to focus only on systems that managed IT services resell. Many will require you to replace perfectly good hardware and software that they don’t know how to support.
  • Downtime is a huge money-maker for information technology services due to hourly costs for emergency engineering. These IT solutions services have a natural disincentive to proactively maintain your systems.
  • Resold software, hardware, and services are often only rented to the customer with long-term contracts and the threat of immediate disconnection if you leave.

Fixed-Rate vs Base Plus Pricing

The difference between fixed-rate and base plus pricing comes down to natural incentives. Everything about our pricing model is designed to align ourselves with our customers’ needs. This means what is good for you is good for us. This is quite opposite of the base plus pricing model, which creates a conflict of interest in that what is good for your managed service provider is bad for the customer. 

How Connetic Can Help

Our highly skilled team of technology experts uses the industry’s best practices to provide IT solutions that set your company up for success. We are committed to providing top-tier service without unforeseen charges to your invoices. Our transparent pricing model benefits industries of all types in the San Diego and surrounding areas.

Connetic is an IT service company that achieves superior data security for their clients by implementing simple, yet effective, multifactor solutions on all of their information technology services, including cloud service, traditional server-based services, and bring-your-own-devices. Learn more about Connetic’s approach to managed IT services: CLICK HERE.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *