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Re: depends quite a bit on the exact service performed >
Posted by yaofeng [Email] (more from yaofeng) on Wed, 11 Jan 2006 18:19:39
In Reply to: depends quite a bit on the exact service performed >, ChipJ, Wed, 11 Jan 2006 17:25:02
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I work in a used to be small and now medium size consulting firm (50 some people). For years I have been told in my sector my billing rate divided by 2.5 will be my salary and I am very much used to it. We are in a sector which is reasonably specialized so we have our niches. Naturally we also have competitions so we do not name the price. We are not in a cut throat style competition but pressure to perform and deliver is always there. I am starting to suspect the ratio is too high, but do not have a refernce point to compre to.
We do not do general design. We do trouble shooting, stress analysis and fix others' problems. In our rate structure, practically everything is included. I am under the impression my rate is quite high (maybe erroneously) so when I propose to the clients I invariably do lump sum so rate is not explicit to them. I am also under the impression we should not have such a high overhead to use the 2.5 ratio. Am I wrong? My target utilization is 90% and I have either met it, usually exceeded it over the years. We have 401k with the employer contributes to 4.5% of participating employee's salary. Yearly bonus is anywhere from 2% to 7% depending on individual and company performance. I have four weeks vacation.
posted by 69.248.96...
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
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