If a customer has adopted the habit of paying only for the time you spend and not for the value you deliver, asking that customer to pay for a flat fee can be a big leap. Block time counting also gives you the opportunity to perform necessary and important work for the customer, which they would otherwise overlook. Backups are an example of this. Most customers only see the value of backups when it`s too late. The agreement does not cover software/hardware/subscription costs. This is not an emergency assistance contract outside of business hours. As soon as the block hours are exceeded, the rates are reset to the standard fee for the technical service. One of the biggest benefits of selling a block of time to a customer in advance is to eliminate one of the biggest challenges of break/fix work – getting paid for the work done for the customer. The real advantage of full-time agreements is that you have to reduce the administrative burden of invoicing and no longer search for long-awaited invoices.
You also record any consultations you would otherwise give for free. I know of IT companies that sell their block time a year – maybe 20 hours of support a year before the deal is renewed. Others sell block time that never runs out and can be used if necessary. If you sell 10-hour blocks, you agree that if the block falls below five hours, you automatically charge the customer a new 10-hour block to reload the agreement. With block time counting, you can eliminate administrative overhead associated with multiple small invoices to a customer. They can be paid in advance for work , without late payments; and you can start by recording the billing of all the small customer requests that you wouldn`t normally charge. From experience as an IT solutions provider, I know that moving from an ad hoc quick break agreement to a contract services agreement can be a real challenge. For those who offer block hours, how are you structured? If your customer buys X hours with a discount and must be used within X hours or X hours for the month and must be used or lost within the month (No rollover). I am trying to implement this option. Thank you Our block time never expired and could be used for EVERYTHING. It was treated as if we had been given a cash advance. It`s my experience that as soon as customers see the time and experience it take for their systems to run smoothly, they begin to recognize the value of a contract for managed services.
Save my name, email address and website in this browser for the next time I comment. This is called free counseling, and that`s why block time agreements are valuable. In this scenario, you would have simply reduced your time block of time you spent instead of trying to send them an invoice. Large blocks of hours for some customers (usually communities) who want us to have certain things they can`t handle. These blocks work every year. In addition, these customers will receive a monthly report with hours remaining. Our administrator generates the reports and emails them to the customer….