Turn of the year: Examine your current prices - Calculation by hourly rates or flat rates?
The business year is almost over – oftentimes, the company result has already been determined – right about time to devote to the next year.
Questions such as "are the company´s prices still up to date?" or "are the prices sufficient to provide a corporate profit of at least 15%?" arise inevitably. In the service sector, this practically means: are hourly and daily rates calculated in a way that they can achieve the objectives mentioned above? Oftentimes, these rates are not the result of a business calculation based on a full cost accounting, but developed historically. However, are they really sufficient? And how should we proceed in order to calculate them correctly?
A white paper with the title "The external hourly rate for agencies, consultants, IT companies, architects and consultants", which can be downloaded from our download section, is to provide information.
However, even if you have finally managed to carry out this calculation profoundly – is the result marketable? Does the customer back these rates? Regardless of the answers resulting from this, here is my recommendation: Calculate the figures and compare your prices with the result.
I promise you that you will be amazed'!