Help with pricing policy required - PGP

This is a discussion on Help with pricing policy required - PGP ; I am a software engineer making my first steps in the information security world. I am looking for some assistance from security consultants and security professionals regarding pricing policy. I am intending to focus on secure communication (mostly secure email) ...

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Thread: Help with pricing policy required

  1. Help with pricing policy required

    I am a software engineer making my first steps in the information
    security world. I am looking for some assistance from security
    consultants and security professionals regarding pricing policy.

    I am intending to focus on secure communication (mostly secure email)
    and secure storage to provide a full a solution of building a privacy
    security plan, selling and installing encryption software, providing
    thorough instruction program, and providing support. I will most
    likely use PGP for most of my clients, which at first will be
    individuals and small offices and later on small to medium companies.

    As a new player on this field I am trying to figure out pricing policy
    and charges rates in this business. I will appreciate knowing what
    method is more acceptable, charge per hour or charge per project? And
    also the standard rates for that method.

    Any help in this regard will be most appreciated.

    Thanks in advance,

    Josh

  2. Re: Help with pricing policy required

    In article <5dae5b18.0412051118.625f4884@posting.google.com>,
    yoasha@hotmail.com says...
    > Suppose I will charge on per-hour basis, eventhough I am convinced
    > there is no standard rate, I believe there must be a frame of charging
    > per hour.


    Rates very by geographical region, client, and profit/non-profit status,
    and most importantly, but skill set required. We charge a minimum of
    $75/hr with a 1 hour minimum for simple things and as much as $200/hr
    for firewall work or for security services.

    --
    --
    spamfree999@rrohio.com
    (Remove 999 to reply to me)

  3. Re: Help with pricing policy required

    Clinging to sanity, yoasha@hotmail.com (Josh) mumbled into her beard:
    > Thanks for the info.
    >
    > Suppose I will charge on per-hour basis, eventhough I am convinced
    > there is no standard rate, I believe there must be a frame of charging
    > per hour.
    >
    > I only need some numbers as a starting point to do business evaluation


    I'd suggest working backwards from what you _want_.

    Suppose you figure that a reasonable annual "salary" would be $100K.
    And that's approximately 2000 hours. (50 weeks x 40h/week)

    That would work out to a rate of $50/h.

    Add in known/expected business and payroll taxes for your locality and
    it would take about $60/h to provide you the equivalent to the $100K
    salary.

    It is reasonable to keep the rate at that sort of level if you can
    expect that there will continue to be fees coming in for a pretty long
    term.

    If, on the other hand, someone expects to be able to pull you in for
    brief engagements, it's appropriate to bounce the number higher. They
    want you in for just a month? Maybe $75/h is reasonable. They only
    want 3 days, on 2 days notice? $100/h or more might seem pretty
    appropriate in such a case.

    You'll obviously want to scale those numbers up or down based on
    variations on the desired "would-be salary."

    If there are lots of other consultants in your locality from which you
    can get fee ranges, that may suggest how supply/demand are modifying
    the rates.
    --
    output = ("cbbrowne" "@" "gmail.com")
    http://linuxfinances.info/info/x.html
    "Surely if the world can't get any other benefit from the existence of
    Microsoft, at least people should stop arguing that popularity has any
    connection with merit!" -- Brian Harvey

  4. Re: Help with pricing policy required

    If you use those numbers you will be doing yourself a gross disservice -

    You need to calculate the REAL cost per hour of achievin gthe salary level
    you want..

    So...

    52 weeks in a year
    Less 4 weeks annual leave
    Less 2 weeks sick leave
    Less 1 week family leave
    Less public holidays - say 5 days, but I dont know actually how many ion
    your area

    So, that is 44 weeks you actually work

    Then figure your actual chargable hours

    Base = 40 hrs a week - or for a professional person 35 hours/week
    Less toilet and coffee breaks
    Less phone call time
    Less preparing quotes, proposals Invoicing etc - say 5 hours a week

    So, on basis of 40 hour week actaully max chargable time is 35 hours

    If you want a salary of $100,000pa then

    44weeks x 35 hrs = 1540 hrs = about $65 hr- that is the minimum

    Of course if you ar enot going to be employed for the whole of the year
    then you need to take that into account as well

    David



    Christopher Browne wrote:

    > >
    > > I only need some numbers as a starting point to do business evaluation

    >
    > I'd suggest working backwards from what you _want_.
    >
    > Suppose you figure that a reasonable annual "salary" would be $100K.
    > And that's approximately 2000 hours. (50 weeks x 40h/week)
    >
    > That would work out to a rate of $50/h.
    >



  5. Re: Help with pricing policy required

    see there can be two ways of dealing with this either you can offer
    onetime payment method where you will deploy the product and
    dependencies, or otherwise u can go on acontract basis.

    for any further queries u can call me +91-98918-50143, my name is
    abhimaniyu.
    or IM me at jackryanbusiness@yahoo.com

    Wish u best of luck
    Abhimaniyu


  6. Re: Help with pricing policy required

    Thank you all for the great help.

    All the best,
    Josh

    my true email: yoasha at gmail dot com


    jackryan wrote:
    > see there can be two ways of dealing with this either you can offer
    > onetime payment method where you will deploy the product and
    > dependencies, or otherwise u can go on acontract basis.
    >
    > for any further queries u can call me +91-98918-50143, my name is
    > abhimaniyu.
    > or IM me at jackryanbusiness@yahoo.com
    >
    > Wish u best of luck
    > Abhimaniyu



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