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May 26, 2023 | By christa

5 Ways Cheaper Priced IT Firms Hide the True Cost of Their Services

You don’t like surprises, and neither do your clients. This is why you work hard to develop a transparent and fair pricing structure for your services. But cheaper-priced IT service providers don’t play by these rules. Instead, they use sneaky tricks in their contracts that may have you paying more than you originally bargained for. Here are five ways the cheaper-priced IT firms hide the true costs of their services.

  1. Hidden Fees and Charges

Hidden fees and charges are a common tactic used by cheap IT firms. These hidden costs can add up to hundreds of dollars per month, and the majority of clients don’t even realize what they’re paying for until it’s too late.

Examples of these fees include:

  • Setup fees: Charging extra for configuring your network, hardware, or other tech products in your office.
  • Onboarding fees: Imposing fees for training your employees on new software and systems.
  • Maintenance fees: Billing you for ongoing services, such as antivirus software or backup solutions, even after the initial installation.
  • Hardware costs: Requiring you to buy hardware from them or charging a fee for using your own equipment.


  1. Lack of Pricing Transparency

Hand in hand with hidden fees, some companies have a habit of making it nearly impossible for customers to know exactly what they’re signing up for. When entering into a contract with an IT company, it’s essential to carefully read the terms and conditions and ensure you understand all costs and fees associated with the services being provided.

Watch for any mention of the following:

  • Support fees: Extra charges for technical support, particularly outside regular business hours.
  • Service Level Agreement (SLA) fees: Premium fees for guaranteed response times or uptime.
  • Additional user fees: Charges for adding extra users to the system.
  • Overage fees: Additional fees for exceeding your plan’s usage limits.


  1. Limitations On Services

Some IT firms have limitations on services, such as the number of technicians they can provide. Another common contract limitation is on the hours available to support customers during the day and night. For example, some companies only give their technicians 30 minutes per call so that they can bill clients at a higher rate than other firms that charge by the hour or minute. You might not realize this until after signing up with them because many contracts don’t include information about these policies until after signing!

  1. Long Term Contracts

A lot of the time, these companies will offer you a cheaper price if you agree to sign a longer contract with them. But what they don’t tell you is that it will be hard for you to cancel it or switch providers. Even if they do let go of their hold on your business after some time has passed (which isn’t guaranteed), there may be penalties associated with breaking those contracts early, such as having to pay off any remaining months left before being able to cancel completely!

  1. Poor Quality of Services

The quality of service you get from a cheaper IT firm is not guaranteed. They may be able to offer lower prices, but this is often because they’re willing to cut corners on their services, and as a result, their technicians are less experienced, or they use older, outdated equipment.

Don’t Settle On Your IT Services

When choosing an IT firm, it’s easy to get drawn in by a lower quote and the promise of reasonable rates. The reality is this: The costs of rectifying a poorly executed implementation or recovering from a failed disaster recovery plan are likely to far exceed your initial IT services budget. Spend a little more initially on a reliable and trusted IT service provider, and you’ll be saving yourself from stress and hassle down the road.

LeadingIT offers 24/7, all-inclusive, fast and friendly technology and cybersecurity support for nonprofits, manufacturers, schools, accounting firms, religious organizations, government, and law offices with 20-200 employees across the Chicagoland area

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