Pricing strategies for computer system installations are typically based on a price-fixed model.  This type of pricing strategy works well because the scope of the project is usually very well defined. This is not to say that you set a fixed price and then stick to it regardless. A smart pricing strategy means always building-in ways to protect yourself and minimize your risk.  

Protecting Yourself With A Fixed Pricing Strategy

  • If you do choose to use a price-fixed pricing strategy for installations, the simplest and  easiest way to protect yourself is with a "provision for change" order.  Typically installations are done a week or two after your initial contact and sometimes an install takes weeks to finish.  Lots can change in that amount of time.  Make sure your pricing strategy can accommodate these changes.  If it doesn’t, you’ll end up the loser.
  • Fixed pricing strategies for installation also require you to take a detailed site survey before you get started.  You generally want to put together a really tight proposal listing what is and what is not included in the price-fixed installation.  
  • Do not do upgrades with a fixed pricing strategy.  You are taking responsibility for a lot of configuration garbage that you may have no idea what you’re walking into because you didn’t put it in there in the first place.  
  • Another area to stay away from with a fixed pricing strategy is migrations.  
  • An obvious time to not use a fixed pricing strategy is with odd-ball configurations.  They are, by definition, odd and this means you never know what you may getting yourself into.

Bottom Line on Pricing Strategy
Regardless of whether you are looking at an obvious odd ball configuration or some other installation issue, if you are considering a fixed pricing strategy you need to develop a sense for detecting potential troublesome areas.  You have to develop an instinct, over time, for recognizing issues that go outside of industry standards.  Aside from that, making sure you have a provision for change order in place should help you protect yourself when using a fixed pricing strategy.

In this article, you’ve been introduced to Pricing Strategy. To learn more about how you can improve your knowledge about Pricing Strategy, just click here now to get access to a free one-hour audio training program on 5 Easy Ways to Grow Your Computer Consulting Business.