CompTIA Breaking Barriers with CompTIA's Managed Services Community
You Do the Math: Quick Calculations for Your Bottom Line with Vince Tinnirello
You must understand the breakdown of your costs, services and delivery so that you know how much to charge people, says Vince Tinnirello of Anchor Network Solutions in this episode of Breaking Barriers. It’s one of many tips he offers during this talk with Managed Services Community leader Lisa Person. During the episode, they discuss two core concepts: What does it cost me to deliver service by the hour and how do I price my service offering to clients?
“You have to know your expenses and your revenue in order to understand the health of your business,” Tinnirello says. They talk about overall costs and also get into specifics, like whether long term technology planning counts as a service as much as antivirus. “If you really want to measure your true costs, you have to include all of them.”
Listen for tips on how to calculate your hourly cost of delivery, decide how much you can charge your clients and factor in curveballs, like client neediness and aging infrastructure. Stay tuned to the end for a deep dive into P&L and ways to stretch your margins.
Resources referenced in the podcast
HCSD Calculator https://www.comptia.org/communities/resources/hourly-cost-of-service-delivery-calculator
Service Plan Pricing https://www.comptia.org/communities/resources/service-plan-pricing-calculator
A sample chart of accounts page 6 of Quick Start Guide to Managed IT Service pdf. https://www.comptia.org/resources/comptia-quick-start-guide-to-managed-it-service