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Added for You - How To Realistically Set Your Fees - Part 2
The well publicised plight of manufacturing companies in the United Kingdom has led to an ever increasing demand for reduction of internal costs and now, more than ever, the focus has been on the cost of supply chains. The nature of supply chains and their structure is however often overlooked, and many of the internal costs can be eliminated by examining the overall supply chain strategy. By de
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect the true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to l
If you've been asked to write an annual report for a nonprofit organization, here are seven tips to get you on your way.1. Focus on accomplishments, not activities. We want to know what you did, but more importantly, we want to know why you did it. What were the results? Why did you spend your time the way you did? What difference did it make?2. Jettison the administrative
The last article examined how to calculate your realistic billable hours. If you remember, we arrived at approximately 1100 hours in a year. To earn our mythical $46,000 per year, you needed to bill at a rate of $42 per hour. Now we need to take into account the expenses of running a business and see where those put our hourly rate.
Most costs fall into three general categories: business and office expenses; salary and personal taxes; and, benefits and profit margin. In this article, we will concentrate on the first category, business and office expenses.
Everyday expenses are part of doing business, and these must be reflected in the prices you charge or you will not be in business for long. Expenses to consider are rent for office space. If you are home-based, you will still have an increase in utilities, such as gas and electric over your regular household bills. You will have telephone costs, postage, copying costs, stationery, office supplies, subscriptions and possibly, membership dues.
You will also need to make periodic upgrades to your office equipment and furniture. Items such as computer hardware and software; fax machine, copier, filing cabinets, telephone headsets, etc. All of these items add to the hourly rate you charge for your services. You must have a good estimate of what these costs total each year or you will end up cheating yourself. If you do cheat yourself, you are going to drastically increase your stress levels and lose much of the enjoyment of running your own business.
Let's plug some numbers into our costs and see how they affect our hourly rate.
Rent $600 per month x 12 = $7200
Utilities $100 per month x 12= 1200
Telephone $100 per month x 12 = 1200
Postage $100 per month x 12= 1200
Copying $50 per month x 12 = 600
Stationery $25 per month x 12 = 300
Supplies $50 per month x 12 = 600
Upgrades $150 per month x 12 = 1800
Furniture $50 per month x 12 = 600
Yearly Total = $15,300
The yearly total comes to $15,300, divide this by 1100 billable hours and you get approximately $14 per hour. Now add this to the original $42 per hour and you can see that you need to charge $56 per hour to cover your hoped for $46,000 per year income plus your expenses. If you are home-based, you can subtract the $7200 per year in rent or about $6.50 per hour from the $56 above.
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect the true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to li
Liquidity in business refers to availability of cash in times of uncertainty or in times of unwanted cash outlay. It is the capacity of any business to be prepared for any cash disbursements without any burden on where to get some money. This aspect is very important in any kind of business.In managing your own homebusiness, you should take into consideration the liquidity of your business.
Everyday expenses are part of doing business, and these must be reflected in the prices you charge or you will not be in business for long. Expenses to consider are rent for office space. If you are home-based, you will still have an increase in utilities, such as gas and electric over your regular household bills. You will have telephone costs, postage, copying costs, stationery, office supplies, subscriptions and possibly, membership dues.
You will also need to make periodic upgrades to your office equipment and furniture. Items such as computer hardware and software; fax machine, copier, filing cabinets, telephone headsets, etc. All of these items add to the hourly rate you charge for your services. You must have a good estimate of what these costs total each year or you will end up cheating yourself. If you do cheat yourself, you are going to drastically increase your stress levels and lose much of the enjoyment of running your own business.
Let's plug some numbers into our costs and see how they affect our hourly rate.
Rent $600 per month x 12 = $7200
Utilities $100 per month x 12= 1200
Telephone $100 per month x 12 = 1200
Postage $100 per month x 12= 1200
Copying $50 per month x 12 = 600
Stationery $25 per month x 12 = 300
Supplies $50 per month x 12 = 600
Upgrades $150 per month x 12 = 1800
Furniture $50 per month x 12 = 600
Yearly Total = $15,300
The yearly total comes to $15,300, divide this by 1100 billable hours and you get approximately $14 per hour. Now add this to the original $42 per hour and you can see that you need to charge $56 per hour to cover your hoped for $46,000 per year income plus your expenses. If you are home-based, you can subtract the $7200 per year in rent or about $6.50 per hour from the $56 above.
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect the true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to l
So you want to start a website that will charge the visitors for membership through their credit cards? Such a site can not run unless you have a high risk merchant account. Here are some questions frequently asked by people who want to start accepting credit payments online.Q. What are high risk merchant accounts?A. High risk merchant account is a type of merchant account that is mo
Let's plug some numbers into our costs and see how they affect our hourly rate.
Rent $600 per month x 12 = $7200
Utilities $100 per month x 12= 1200
Telephone $100 per month x 12 = 1200
Postage $100 per month x 12= 1200
Copying $50 per month x 12 = 600
Stationery $25 per month x 12 = 300
Supplies $50 per month x 12 = 600
Upgrades $150 per month x 12 = 1800
Furniture $50 per month x 12 = 600
Yearly Total = $15,300
The yearly total comes to $15,300, divide this by 1100 billable hours and you get approximately $14 per hour. Now add this to the original $42 per hour and you can see that you need to charge $56 per hour to cover your hoped for $46,000 per year income plus your expenses. If you are home-based, you can subtract the $7200 per year in rent or about $6.50 per hour from the $56 above.
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect the true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to l
Heating, ventilation, air conditioning and refrigeration (HVAC/R) are major concerns for most organisations when it comes to operations. Whatever business you’re in – from manufacturing to office-based services – these constituents can be the ‘life’ of a building. They can have an indirect effect on production, if your workers depend on comfortable working conditions. And they can have a direct ef
Postage $100 per month x 12= 1200
Copying $50 per month x 12 = 600
Stationery $25 per month x 12 = 300
Supplies $50 per month x 12 = 600
Upgrades $150 per month x 12 = 1800
Furniture $50 per month x 12 = 600
Yearly Total = $15,300
The yearly total comes to $15,300, divide this by 1100 billable hours and you get approximately $14 per hour. Now add this to the original $42 per hour and you can see that you need to charge $56 per hour to cover your hoped for $46,000 per year income plus your expenses. If you are home-based, you can subtract the $7200 per year in rent or about $6.50 per hour from the $56 above.
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect the true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to l
Researcher, Nancy Adler conducted a monumental study in the mid 1980’s to address myths about women and international business. Her study investigated if commonly held myths about women in international business were true including: women are not interested in International business, women were not willing to travel overseas for a variety of reasons namely family responsibilities and women would
I have made a number of assumptions in arriving at these figures, your costs may be more or less, but this will give you an idea of what to look for and how to calculate your expenses. If you have any questions, write to me or give me a call and I will go over your situation with you.
Remember, in order to be fair with yourself and your customers, your prices must reflect the true cost of doing business. Do not ever apologize for your prices. You need to charge enough for you to live on and enough to stay in business to service the clients that have come to depend upon you. If some of your customers can't understand this, change your customers, not your prices.
Copyright 2000, DeFiore Enterprises
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