Small Business Computer Consulting

Recently IEComputers announced a new program for IT consultants and other solution providers.  The IEComputers.com Partner Program offers IT consultants, system integrators and VARs with wholesale pricing on hardware and software.  It offers a web-based ordering system, next-day delivery and same-day product pick-up in some areas on over 300,000 IT products.

In business since 2002, IEComputers has offered IT consultants and other consumers the opportunity to purchase products online and now is adding a chance for its partners to earn cash back on certain purchases.

According to James Cornell, founder and president of IEComputers, typically IT consultants and systems integrators buy hardware or software from major chains such as Best Buy or from an online provider and gets nothing special in return save sometimes lower prices.  This new program for IT consultants offers a reward in the form of cash back on certain purchases with no extra cost to clients.

This new program offers two program levels:  Preferred Partner and Platinum Partner.  Those involved in the Preferred Partner program get instant access to wholesale pricing and web-based ordering with a $199 set-up fee and $19.99 per month fee with the option of cancelling at any point.  Platinum partners get a personally branded web-site and the ability for clients to order direct online with just a one-time $499 fee at sign-up and $29.99 in monthly fees.  A special offer for the first 100 IT consultants is currently running that allows them to get six months free of processing fees when they sign up for the program.

Submitted By:  Computer Consulting Kit

Micro small businesses frequently need to use internal gurus or free help, which is why the sweet spot is the best area for IT consulting.  Which rates are appropriate for the sweet spot (in U.S. Dollars)?

IT Consulting Range for the Sweet Spot

The rate range for the sweet spot of IT consulting (aside from for moonlighters or gurus) is typically between $50 and $125 or even up, depending on the skill set, niche and geographic service area.  However, if you want to project a professional image in the sweet spot small business industry, you should not be charging less than about $75 – $80 hourly.  

What is Your Lowest IT Consulting Rate?

$75 – $85 per hour should be the lowest you will accept for IT consulting.  And you should only charge that low rate when you have clients committing to you for a long period of time or signing service agreements.  Charging anything below this amount for your IT consulting services could find you going out of business.  

Blogged By:  Joshua Feinberg

Computer business Ingram Micro stated it would be expanding its services and reopening its East Coast Solution Center.  The center will offer U.S. and Canadian solution providers a variety of resources, including demonstration areas such as home theatre, digital signage, remote office, etc.  This investment by the computer business, specializing in distribution is part of a plan to create demand for sales.

The computer business’ center will be based in Buffalo, New York in a 1,000 square-foot building.  The Ingram Micro facility will be enlarged by 30 percent with over 100 suppliers and four full-time engineers.  The focus of the center will be current technologies and up-coming breakthroughs.  The computer business hopes to bring thousands of solution providers, IT manufacturers and others to its labs.  

Ingram Micro spokespeople state that both its East and West Coast Solution Centers have brought about $2 million in closed sales and $7 million in its sales funnel last year.  This proven success gives participating solution providers a great motivation to participate in the activities provided.

The computer business’ solution centers were the first to offer digital home and digital signage solutions.  Both present the opportunity for partners to see technologies and use them before they are released and before recommending them to clients.

For more information on this computer business story, visit the attached link.

Added By:  Computer Consulting 101 Professional Kit

While non-profits are a valid market for IT specialists, they are certainly not the most financially rewarding clients.  

The Pros of Non-Profits for IT Specialists

1.     You can easily reach non-profits because they are members of trade groups and publicly listed in directories.  

2.    You can gain great emotional rewards from knowing you are helping a cause in which you believe and that is valuable to society.  

The Cons of Non-Profits for IT Specialists

1.     Non-profit organizations will have very low profit margins.

2.    Getting into bidding wars is a possibility with non-profits.  

The second “con” is dangerous; bidding wars make your firm into a commodity.  Also, when you bid against someone else, your competitor could be cutting corners, leaving the bid price low and preventing you from providing a realistic solution.  

Government Bids Can Be Difficult for IT Specialists

Selling to small businesses and the sweet spot is much easier for IT specialists than dealing with non-profit and government bids.  Regrettably, most non-profits and government organizations have to take the quoted price by law.

More Problems with Bidding Wars for IT Specialists

When you’re involved in a bidding war, your trust, personality and credibility does not really make a difference.  Following the rules and getting the bid in on time are the two most important factors.  

Bidding wars also require IT specialists to do a lot of non-billable work – researching, developing configurations, creating a cohesive plan — that is normally billable with regular small businesses.  And getting the contract can still be a near impossibility.  

Bid Smart

If you want to get in a competitive bid, you can’t put your whole energy into it.  Your bid chasing time as IT specialists should not exceed 20% of your business development time.  Unless you have chosen non-profits as your specialty, you are better off focusing on small businesses within the sweet spot.

If a government agency wants to outsource support services and the RFP is well-defined, you might have an easier time putting in a good bid.  However, if the organization is simply looking to buy hardware or do some installation once, you will have a problem making a real profit.    

IT Specialists and Non-Profits

Non-profit and government agencies are better niche opportunities for IT specialists than regular retail opportunities.  But they are still not as profitable as the sweet spot.

Added By:  Computer Consulting Kit

Recently, solution providers noted that three years after Platinum Equity acquired CompuCom and GE IT Solutions for $504 million, it will be selling it to a private equity firm for $628 million.

CompuCom, based in Dallas is being purchased by solution providers Court Square Capital Partners, based in New York. Court Square is a 30-year-old private equity firm focused on the midmarket. It expects to close the sale by next year. The equity firm hopes to use CompuCom’s acquisition as a launching pad for acquisitions of more solution providers in the future.

Experts at important publications such as VARBusiness Magazine state that the latest solution provider acquisition is a great investment for Platinum. They purchased the company at the right time, and sold at the right time, when the company was still thriving and valued at greater than purchase price. Experts expect they will continue to see private equity interest in solution providers soar because their value has been evidenced in recent years. This is a testament to the value of the solution provider business model.

CompuCom will offer to purchase its outstanding 12 percent senior notes that are due in 2014 as part of the deal. For more information on this story for solution providers, see the attached link.

Added By: Computer Consulting Kit

There are many different IT consulting rates.  Some people decide to charge zero, others go for $25, $35 or $45 per hour.  What is the best IT consulting rate for you?

Startup and Rates

If you want to set a good standard for yourself, your future clients and your business, your starting IT consulting rates should be around $75 – $95 per hour.  Setting high rates for yourself will build a reputation for your IT consulting business and help you attract the best clients.

IT consulting businesses that work with small companies typically charge $100 – $125 per hour.  The rate is determined by how deep their specialty is, their vertical industry and their metro area.  

How Do You Adjust IT Consulting Rates?

New IT consulting businesses often don’t accurately think about their expenses and end up charging too little for their IT consulting services.  Usually, if you start out really low, you will have to stay really low.  Adjusting IT consulting rates late in the game is nearly impossible.  Your last resort is fixing rates going forward and getting new clients, keeping a lot of old ones that are paying you way too little.

Raising Rates is a Challenge

When you grandfather rates, half or at the very least one quarter of your IT consulting business will be useless because it will not be earning you any money.  Getting clients to agree to huge rate increases – possibly increases of 100 percent or even more – is an impossibility.  

The Main Idea About IT Consulting Startup Rates

When you are starting your business, don’t charge too little or you will have to totally ditch your IT consulting client list later and start over, possibly putting you out of business.  Set rates appropriately from the beginning to attract the best clients and get the most out of your company.

Blogged By:  Joshua Feinberg

IT consulting firm Consultedge, Inc. announced it had experienced significant revenue growth last year – 54% more in FY 2006 compared to FY 2005.  The IT consulting firm, leading provider of telecommunications services has been acknowledged two years in a row – in both 2005 and 2006 – the reputable CRN Magazine by being named to the Fast Growth 100 list.  This list for IT consulting firms and other technology providers annually lists the U.S.’s top 100 solution providers based on revenue for a two-year period.  

Neal Stanton, President and CEO of Consultedge attributes the IT consulting firm’s growth to the talented staff that pays attention to clients’ business strategies and develops communications solutions that are  custom-made for each client.  

The IT consulting firm has clients in the financial, commercial, real estate, utility, government and non-profit industries.  Its most recent projects were a voice and data communications system for the Prudential Arena in Newark, NJ and a multi-site telephone system that connected offices for Wall Street Systems in New York, New Jersey, London and France.  

Consultedge has earned a reputation for driving its business based on clients’ needs.  Company spokespeople stated the IT consulting firm has been expanding because of exceptional staff that have led to an increase in demand for the company’s services.

Blogged By:  Computer Consulting Kit

When making IT sales calls, you have to get through to the right person.  But getting through the front gates of companies can be challenging, and getting in touch with the person you need to talk to in order to achieve success in IT sales.  

Cold Calls Aren’t Easy

Most likely when you make a cold IT sales call, you will be greeted with a call screener that takes your name and number, but tells you she/he is not interested.  You can’t use this strategy to build demand unless you can get past the front gates of companies.  

Strategies for Getting Through the Front Gates

1.    Call before the screener leaves.  Typically the person answering phones works 9-5, 8-6 or 8-4.  

2.    Send an email or fax.

3.    Send a letter or postcard.

4.    Send a Fed-Ex package marked “personal confidential.”

While these strategies can sometimes lead to IT sales, they have been around for a while, and most businesses probably see through them at this point.  

There’s a Better Way to Get Through the Front Gates with IT Sales

The best way to make sure you connect with the right people in local businesses is to become respected and known in your community.  Build relationships with local accountants and deeply-niched solution providers, speak at events, hold seminars, volunteer and invest time in networking.

The Big Idea

If you can get a reputation within your area for being good at the job you do, you have a better chance at achieving success with IT sales.  No one will hire you unless you are known, liked and trusted, and most people will not respond to tricky sales techniques.  

Added By:  Computer Consulting 101 Professional Kit

Systems integrators business Verio, Inc., provider of online solutions that include hosting, applications and other services recently earned the acknowledgement by VARBusiness magazine that it is a leading technology integrator in North America.  500 companies made the list as leading revenue producers in the systems integrators community.  The list and its ranking is based on gross worldwide revenue of hardware and software sales and earning from managed services

Solution providers and systems integrators run the U.S. economy as well as others worldwide.  Verio spokespeople stated they were honored to have received recognition from the top magazine for VARs.  The midmarket, as shown by this year’s 500 list has grown, and there are more partners offering excellent solutions for clients than ever before.  

In order to determine the top 500 list of systems integrators, VARBusiness asked companies to complete online questionnaires for prequalification.  Research was conducted by VARBusiness in February and April 2007, and independent analysts looked at the data to determine the top systems integrators.  The list of systems integrators was published in the June 11 issue of the monthly magazine.  

Added By:  Computer Consulting Kit