To Charge Before the Service or After? That is the Question...

Discussion in 'General Business' started by TheCDAllenGroup, Aug 27, 2009.

  1. #1
    I'm starting a new remote support tech company doing technical support for PC users. My business provides just remote assistance-based technical support, and if there's a hardware problem, we refer the customer to a local technician.

    I have one question about planning my business: When a client calls in to have an issue resolved, do I charge them before or after resolving the issue? I will be charging for services via credit/debit card.

    Another question: Is it a good idea to have a "we resolve the issue or you don't pay anything" type of policy with our service? Any drawbacks to this or anything else I need to be aware of?

    Thanks for your help!
     
    TheCDAllenGroup, Aug 27, 2009 IP
  2. SmallPotatoes

    SmallPotatoes Peon

    Messages:
    1,321
    Likes Received:
    41
    Best Answers:
    0
    Trophy Points:
    0
    #2
    You can do like a hotel - put a hold on the credit card before you start, then solidify it into a charge afterwards if you managed to solve the problem, otherwise just drop the hold.
     
    SmallPotatoes, Aug 27, 2009 IP
  3. TheCDAllenGroup

    TheCDAllenGroup Member

    Messages:
    67
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    43
    #3
    Thanks Small Potatoes. That's what I'll try to do. Not sure if Paypal Virtual offers that though...
     
    TheCDAllenGroup, Aug 28, 2009 IP
  4. mentos

    mentos Prominent Member

    Messages:
    15,280
    Likes Received:
    473
    Best Answers:
    0
    Trophy Points:
    330
    #4
    When a client calls in to have an issue resolved, do I charge them before or after resolving the issue? I will be charging for services via credit/debit card.
    Charge them before give out service,coz many client will not pay after they get the service

    Another question: Is it a good idea to have a "we resolve the issue or you don't pay anything" type of policy with our service? Any drawbacks to this or anything else I need to be aware of?
    Yes coz by have this clause,it will boost client confident.The only draw back i see is even when the hardware issue is solved but the client claim that it still did not solve.
     
    mentos, Aug 28, 2009 IP
  5. elonblock

    elonblock Peon

    Messages:
    25
    Likes Received:
    0
    Best Answers:
    0
    Trophy Points:
    0
    #5
    It seems to me the majority of people who would be contacting you already know they have a challenge and are willing to pay to have it solved.

    SmallPotatoes had a great suggestion, plus it lowers the barrier of entry so to speak.
     
    elonblock, Aug 28, 2009 IP
  6. AbsoluteBreeze

    AbsoluteBreeze Peon

    Messages:
    10
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #6
    I personally prefer upfront - set up a shopping cart on your site and let them buy your time in advance.
     
    AbsoluteBreeze, Aug 28, 2009 IP
  7. Hagen

    Hagen Peon

    Messages:
    347
    Likes Received:
    5
    Best Answers:
    0
    Trophy Points:
    0
    #7
    I like SmallPotatoes' suggestion. You could also just charge them upfront and have a money back guarantee where you refund them if you were unable to resolve the issue.
     
    Hagen, Aug 28, 2009 IP
  8. MMandYOu

    MMandYOu Peon

    Messages:
    348
    Likes Received:
    8
    Best Answers:
    0
    Trophy Points:
    0
    #8
    CD! Hey old friend, send me an email. I got some advice for you on this topic!

     
    MMandYOu, Aug 28, 2009 IP
  9. Newviewit

    Newviewit Active Member

    Messages:
    303
    Likes Received:
    6
    Best Answers:
    0
    Trophy Points:
    60
    #9
    It's not even a question.

    You must get paid in the beginning or you will loose tons of money.

    Our projects ar usually 50% up front, and 50% upon completion. For larger projects maybe 30/30/30... but always make sure you get some money before starting a project!
     
    Newviewit, Sep 1, 2009 IP
  10. prestons

    prestons Peon

    Messages:
    414
    Likes Received:
    11
    Best Answers:
    0
    Trophy Points:
    0
    #10
    It all depends who your target market is. If your focus is on joe public then create a system where they have to pay a small fee in order to gain entry to the remote access system. This way they have no choice and if they want you to login to their PC they must pre pay. Call it a virtual call out fee if you like then invoice them your time after. At least if they do not pay you have got something out of it.

    If you are going to target businesses you will find that the person that actually contacts you does not have the authority to issue payments so you will have to do the work and then send them an invoice. A way around this would be to get a few businesses on board who pay you an ongoing monthly maintenance fee. Then provide them with a guarantee that you will fix their PC within say 4 hours of being contacted. Most businesses will like this way of paying just incase something goes wrong with their PC's. After all time is money in business and the longer a PC is down then the more money they are loosing and they are also paying a member of staff for doing nothing.

    Just remember that you have the solution to their problem so you can dictate to your customers what your own payment terms are.
     
    prestons, Sep 1, 2009 IP