IT services quotes can be misleading, even if they include a monthly amount, a list of services, and a place for a signature. If you do not have a background in IT, you can miss elusive clauses that will allow the IT provider to charge you outrageous amounts after the fact. This guide will highlight red flags you should look for when you read a quote, what a fixed price quote should really include, and what to watch out for during the signing process.
The reason IT quotes are so difficult to read is IT services include so many different components including a help desk, monitoring, IT security tools, Backup, IT services, IT compliance services, and hardware. IT service providers have a great deal of flexibility to bundle, name, and price their services the way they choose. Almost identical quotes can have vastly different scopes of work, and the difference in work scope can be almost impossible to determine without carefully reviewing the quote’s fine print.
What "Fixed Price" Should Actually Mean
A true fixed price quote will provide a specific monthly cost for a specific scope of work that is completely outlined anddescribe the exclusions for services that are not part of the fixed price. To determine if a quote is truly fixed, you should ask questions such as: What happens if we add 10 new employees during the term of the contract? What happens if there is a significant security incident? What does after hours support cost? If a quote states “fixed price” and does not answer the questions above, then they are using the term “fixed price” to market their product and are not truly defining a fixed price in their contract.
Line by Line: How to Spot a Honest IT Quote
The lines in an IT services quote should be clearly labeled as follows:
Base recurring services: exclude “IT support” as a line item. Instead, specify help desk, monitoring, patching and protection of endpoints, as well as other systems.
Time-based obligation: provide real SLAs and not just “prompt support” or “timely response.”
Excluded services: new hardware, big initiatives, off-hour emergencies, major compliance work.
Set-up fee, if applicable, should be written as a separate line from the monthly recurring fee.
Term of the agreement; whether cancellation is allowed and under which conditions.
Clauses for escalation in price. Most contracts include an increase each year; a transparent quote states what it will be each year, instead of writing it as “a percentage increase.”
Common Red Flags in IT Services Quotes
- IT services quotes without a list of specific services
- IT services quotes without an SLA
- IT services quotes without EDR, MFA, or other basic/optional security tools
- IT services quotes that don’t include a sample contract in the sales process
- IT services quotes that include long automatic contract renewals
- IT services quotes that seem discounted without any explanations for the missing services
- Quotes that lack a policy for increasing prices
Questions That Reveal a Vague Quote Fast
“What specific services do you provide for the quoted monthly price?”
“What is your written commitment for response time during a network outage?”
“How will we receive support while we are experiencing out of hours emergencies?”
“Is there a price for basic tools like MFA or EDR in this quote?”
“What services are not discussed in this quote?”
“What is your policy for price increase at the contract renewal?”
A provider that answers these questions clearly is providing a real quote. A provider that answers evasively, or says “let’s talk about it on a call,” is red flag worthy.
How to Decipher Quotes with Disparate Appearance
For quick apples to apples comparison, add service components to a checklist (help desk, monitoring, EDR, MFA, backup and testing, compliance support). Tick the boxes for quotes that cover each of these components. A quote that comes in at $30 per user cheaper, but does not cover 3 of the 6 components, is actually a lower scope of work at a reduced price, which is an altogether different comparison.
What Happens When a Quote Looks too Good to be True?
The lower than expected quotes for IT services usually come from one of the following scenarios. First, cybersecurity tools might not be included at all. Second, SLA might not have any real meaning. Third, the support hours might be very limited. Lastly, as the contract starts, they are more likely to start aggressive upselling. None of these should be deal breakers, so long as the potential customer understands the risks. It is important to be clear on a contract about these things, and not find out about them later through unexpected charges.
How Ovron Inc. Generates its Proposals
Ovron Inc. offers its potential customers proposals that include clear, comprehensive and detailed language. Ovron Inc. also provides sample contracts to review before sales discussions. We, at Ovron Inc., do not like to sell to potential businesses that are more concerned with price rather than what they are agreeing to, because we like to maintain transparency with our clients rather than facing the risk of business relationship breakdown due to hidden fees.
Frequently Asked Questions
A “fixed price” should mean a set monthly price for a defined scope of services with outlined exclusions for everything else. It should not mean a monthly price that could mean anything.
Probably the biggest red flag would be the lack of a written service level agreement that outlines specific response time goals. “Prompt support” is not good enough.
IT services quotes vary neighborhood by neighborhood. They use different scopes and different formulations of the same scope, resulting in different quotes for different services.
Absolutely. Providers that are not clear are typically not trustworthy. You want to review the sample agreement well before the sales call.
Conclusion
Beware of the monthly number in IT services quotes. Look for specific, outlined inclusions and exclusions, and actual written responses to SLA’s. The contracts typically do not bite the businesses that ask a lot of upfront questions. They bite the businesses that ask the least.
Want a free review of your IT quote? Email Ovron Inc for a free, no obligation assessment.
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