To calculate the labor burden for billable staff, divide all their labor costs, including those above and beyond gross compensation, by 2,080 work hours per year. To calculate overhead burden, total the yearly amount of all company overhead costs (including nonbillable admin staff) and divide that value by 2,080 work hours per year as well. The sum of these two values will give you a quick and dirty estimate of your hourly cost of service delivery.
Once you determine this, you can forecast the number of hours it will take to support a new service customer. Multiply that number by your hourly cost of service delivery. The final step is to add your costs for any third-party services to the equation, along with any marketing and sales costs expended to acquire your customer.
Setting retail pricing. Once you have established your total cost of service delivery for your new service offering, it’s a simple matter to determine the gross profit margin you would like to realize for each of your solutions and set your price points appropriately.
Pricing your services at rates low enough to be competitive yet high enough to maximize profits is no easy feat. With the help of these guidelines, however, any channel pro can arrive at the right figure for every service he or she offers.
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