Pricing for employees

[Lyncombe-climber]

Just wandering what percentage mark up others are putting on there employees wages. Just want to see if mine are right ATM that's all

 

Pm me if you don't want it public.

[Billy]

employ the people you need/ want to get the jobs done fast for what they are worth then price jobs to suit your team....that's how I look at it anyway rather than a set profit per head.

[Paul Jenks]

Look at all your costs, not just the wages. As has been said, pay someone minimum wage and jobs will usually take longer. Decent staff cost more and usually produce more. Wages are the largest cost and so will have a greater impact on costs.

Add up all your annual costs: wages, rent, heat, light, office, advertising, accountancy, insurance, fuel, machinery, spares, servicing, contigency, etc, etc. Divide by 250 and this will give you a rough idea of the amount you need to earn per day to acheive it. If you want some profit add a bit to your day rate.

Working out the price for employees is an iterative process. Start with an average and take it from there. Talk to your accountant and prepare a budget forecast and cashflow forecast. These will help you to plan for the year with outgoings, expenses and unforeseen costs.

[Lyncombe-climber]

Thanks lads.

[Gareth Dalzell]

Look at all your costs, not just the wages. As has been said, pay someone minimum wage and jobs will usually take longer. Decent staff cost more and usually produce more. Wages are the largest cost and so will have a greater impact on costs.

Add up all your annual costs: wages, rent, heat, light, office, advertising, accountancy, insurance, fuel, machinery, spares, servicing, contigency, etc, etc. Divide by 250 and this will give you a rough idea of the amount you need to earn per day to acheive it. If you want some profit add a bit to your day rate.

Working out the price for employees is an iterative process. Start with an average and take it from there. Talk to your accountant and prepare a budget forecast and cashflow forecast. These will help you to plan for the year with outgoings, expenses and unforeseen costs.

 

I,d divide by 220 and not 250. Still roughly but a bit more realistic in terms of productive days and could mean the difference between making a loss or a profit on staff:001_smile:

[Lyncombe-climber]

Ok. Well I currently make 16.5% profit per job. Hasn't failed me yet. This seem ok?

[Billy]

Is that after taking a wage for yourself? If not that's low.

[Lyncombe-climber]

Yeah that's with more than a decent wage for myself.