I don't see any possible way that you're making any sort of actual
profit on
this (or even really breaking even) at this rate, unless you've got some
redicuously cheap labor....
Consider this...
If you're doing $40 an hour, and you had a full time person billing
100% of
the time (ie 168 hours per month), then you'll max out for that
employee at
about $80,000 of revenue....you then have to pay taxes, mileage,
insurance,
etc...
Now, take into account that a single full time employee doing this
full time
in reality will never do more than 100 billable hours a month...
This is from experience and even assumes that you're fairly
streamlined in
terms of paperwork, supplies, travel routes, etc...
This means, at $40 per hour, you'll only pull in $48,000 per year in
revenue
for that full time employee....assuming you have a streamlined
operation.
There's no room in there to pay them, pay taxes, pay mileage, pay for
their
portion of office space (and other expense), pay for billing, pay for
your
time in management, and so forth.
I'd double it as a starting point if you're in a rural market, triple if
you're urban, and probably more for people who aren't regular customers.
Still, a lot does depend on your market and your business model. Are
your
employees knowledgeable? Do they really know what they are doing on
this
stuff, or are they just fumbling through...
Keep in mind, as well, that small business consulting is not too
different
from dealing with people in the home construction / repair
industry--there
are a lot of people who just walked off the farm, so to speak, and
claim to
be in the business (no insult intended, and some of them do well). They
aren't always the best in terms of quality, and they aren't always
the best
in terms of professionalism. Most businesses that have some sense
pay more
to get better quality...in some sense, if you price yourself higher, you
price yourself into the good customers. You also give yourself the
money to
do it well...
-Clint Ricker
Kentnis Technologies
On 8/15/07, Mike Hammett <[EMAIL PROTECTED]> wrote:
Does this sound fair to all parties?
My normal rate is $40/hour, with $80/hour for emergencies.
I charge $150/month to manage a business's network. This includes 3
hours
of support. I also will VPN into the network and ensure that operating
systems, anti-virus, etc. are updated, which does not consume any
hours. Additional support is available at $35/$70 per hour.
-----
Mike Hammett
Intelligent Computing Solutions
http://www.ics-il.com
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