Prepaid hours, hourly rate or subscription?

There are three common ways to buy Business Central support: hours by usage, a prepaid block of hours and a fixed subscription. The price per hour in a quote says little until you know what is included. This article shows how to work out the real hourly rate and which questions reveal the difference between the models. It names neither prices nor specific providers.

The three models in brief

An hourly rate means you pay for the hours used. It is flexible but hard to budget. A prepaid block is hours paid in advance, often with a validity period. A subscription is a fixed amount for an agreed service, for example an amount of support or a fixed contact.

No model is best in itself. The choice depends on how often you need help and how even the need is.

Many agreements are a mix, for example a subscription with included time and an hourly rate for anything beyond it. Ask what is included and what is charged extra, and ask for it in a table.

Work out the real hourly rate

Also take into account the time you spend explaining the problem yourselves. With a poor case description, usage rises. See the article on writing a good support case.

Do not compare only on the stated hourly rate. Instead calculate: total payment in the period divided by the hours you actually use and get value from. Check these items:

Do unused hours expire, and when
Is time deducted for case creation, clarification and administration
Is time rounded up, for example to quarters or half hours
Is there a minimum charge per case
Are there surcharges for urgent cases or outside opening hours
Are response times part of the price or an extra service

A worked example without market figures

Suppose you pay a fixed amount for a number of hours and you use fewer than you bought. Then the real hourly rate is higher than the stated one. If you used more, and the excess costs more per hour, the real rate is also higher. Put your own figures into a spreadsheet and look at three scenarios: low, normal and high usage.

Have your case history ready. If you do not have one, start by noting the number of cases and the time spent over three months.

When each one fits

If the need is irregular and small, an hourly rate or a prepaid block may be cheapest. If the need is steady and you want known costs and fixed response times, a subscription may fit. If you are in the middle of a change or a project, it may be better to agree a fixed price for the work itself. See the article on fixed price or hourly rate.

Remember that your needs change. Straight after an implementation the need for help is often higher than a year later. Choose a model that can be adjusted, and check whether you can switch without a fee after a few months. Agree a date to review usage.

Ask for a trial period or a short first agreement if you are in doubt. Then you get your own figures before committing to a longer period.

Always ask about termination and handover

Whichever model: what is the lock-in, can unused hours be refunded, and what do you get if you switch? Get the answers in writing.

Ask also for a monthly overview of what the time was spent on. Then you can see whether there are cases a super user could have solved and whether the agreement still fits. See the article on an internal super user or external support.

At Addverk

Our services and prices are on the page about services and prices. Use the checklist above when you compare us with others.