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depends quite a bit on the exact service performed >
Posted by ChipJ [Email] (more from ChipJ) on Wed, 11 Jan 2006 17:25:02
In Reply to: Billing rate and salary ratio in service industry, yaofeng, Wed, 11 Jan 2006 17:02:07
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In my old company which designed biotech facilities we broke even about 1.6x base salary and somtimes bid jobs as low as 1.8x salary. A more reasonable, profitable job would be 2.0x base salary. If you are a boutique firm that does not have to bid work, you might command 2.3-3.0, but your clients are more often law firms or other places with real money. You would have a hard time getting that from a pharmaceutical company these days. I understand that general firms that do process engineering such as Jacobs get somewhere between 1.8-2.3. Bear in mind that the employee really costs about 1.3 once all benefits and other direct costs are factored in, leaving only 0.3 to contribute to overhead at breakeven. Some firms cheat by charging extra for nearly everything you think is included in the rate, such as paper, telephone calls, travel expenses, etc. They also vary in how they treat travel time and drawing production costs, computer time, use of specialized software, and time spent by executives on your job (that can cost anywhere from free to $200 per hour). I never saw or heard of much difference based on the size of the firm, though. It is such a damn competitive business that there is little room for differences in overhead structure.
I'm curious why you ask.
-former Project Manager, $100M biotech plant - now I run my customer's building for him
posted by 66.30.1...
Posts in this Thread:
- Billing rate and salary ratio in service industry, yaofeng, Wed, 11 Jan 2006 17:02:07
- We used to bill at 4x salary for financial advisory, Geoff, Thu, 12 Jan 2006 14:42:30
- Re: Billing rate and salary ratio in service industry, Rafe, Thu, 12 Jan 2006 14:12:37
- Re: Billing rate and salary ratio in service industry, mb25, Thu, 12 Jan 2006 09:10:38
- depends quite a bit on the exact service performed >, ChipJ, Wed, 11 Jan 2006 17:25:02 <-- Viewing This Message
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