Fixed price service, or repairs on demand?
So you want to know the difference between a Break-Fix model and a Fixed-Price pricing model with your IT provider?
Watch the video or read the article below to find out which pricing model will best suit you.
In a Break-Fix model, when something is broken in your organization you call your IT provider and they fix it. And normally they will charge you an hourly rate, depending on how long it takes for them to fix the situation. You can have a small bill or a big bill, depending upon the time it takes to fix it.
In a Fixed-Price relationship, you come to an agreement with your IT provider on how much it’s going to cost and to fix any issue, whatever may arise in your organization. And they’ll invoice you once a month for this and you pay them, assuming you’re happy with the service, and they’ll fix things.
There are many advantages to the Fixed-Price model regarding cash flow, regarding budgeting, but I want to highlight how this relationship can fundamentally change how you can relate to your IT provider and the trustworthiness of your IT provider.
In a Break-Fix situation, we have this perverse situation where the more problems that you have, the more money your IT provider makes out of you, whereas you’re suffering, your staff are suffering, and you’re losing money. And you can see in this graph that you’re losing money, and on the flip side your IT company is making money. And there’s nothing I personally hate more than when a server is down, when a business is offline that I end up giving them a big bill to fix the problems. It’s like rubbing salt into the wounds of someone who’s already suffering.
In a Fixed-Price situation, all problems are covered under the one agreement. When there’s an issue, they just get fixed. When there are lots of issues, the IT company’s suffering; their profit are being reduced, just like the profits are being reduced in your organization. Therefore, you now both have the same interest. Both you and your IT company want no issues. The less issues you have, the happier both organizations are going to be. With this alignment, a lot of productivity is suddenly addressed. You can trust your IT provider that they’re highly motivated to fix problems once and for all. They’re not interested in reoccurring issues.
For Network Overdrive, we’re specialists in this model. We deploy software agents to servers and workstations; we monitor your network and your routers so that we can address issues before they become big issues. And we can quickly remediate and fix the problem. By doing this, we ensure that we are profitable and the businesses who use us are profitable.
If you wish to know more information about the Fixed-Price model and how to transition from a Break-Fix to Fixed-Price, you can call us on 1300 368 928.
If you’d like to find out more, email us at [email protected]