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HourlyBillingRates.WhatAreOthersCharginghateveritsdeliver-ablesandirrespectiveofitssizeaservicex1ermx19sincomecomesprimarilyfromsellingtime.Andsincemanyofax1ermx19scostsarex1exedover-headrentlaboretc.prof-itabilitydependsonhowmuchtimeisbilledandatwhatrates.Theimportanceofbillingratestopro7tabilitycanx19tbeoveremphasized.Firmsthatcare-fullyestimateprojectneedsthenmultiplythehoursrequiredtimesoneormoreratesbasedoncoveringcostsandpro7tunderstandaprojectx19spotentialpro7tabilityandhowmuchnegotiationroomtheyhavewithclients.Thosethatdonx19tgothroughthisprocesstrustaprojectx19sprof-itabilitytopureluck.Yethoweveraccuratelycal-culatedandeffectivelyemployedbillingratesneverexistinavacuum.Whetherdirectlythroughacknowledge-mentorthroughthepricingtheyestablishbillingratesalsoaffecta7rmx19spositioningandcompetitiveness.Thisisespecial-lytrueinrecessionarytimeswhenclientsaremorepricesen-sitiveandcompetitionisgreater.Sowhateffecthasthereces-sionhadonbillingratesTo7ndoutinAugustweconductedane-mailsurveyofapproximately2500NorthAmericanprincipalsofsingle-andmulti-personcreativefirms.Recipientswereaskedtoanswerafewsimplequestionssomerelatedtobillingratesgenerallyandsomerelatedspecificallytofirmsoftheirsize.1CreativeBusinessx14SeptemberOctober2011CBSURVEYRESULTSResponseswereanonymousandtabulatedelectronically.Theresponseratewasnearly25thehighestofanyofCBsurveytodate.ESTABLISHINGRATESBeforegettingintothesurveyresultsitwouldbehelpfultoreviewhowa7rmshouldestab-lishitsbillinglaborrates.Forasingleblendedrateaddupallexpensesx14overheadsalariesbene7tsamortizedequipmentcostsetc.x14forayear.Add20or25tothetotalasapro7tmargin.Thentaketheactualbilledhoursdur-ingtheyearanddividetheexpensetotalbythis7gure.Orasanapproximationdivideby50ofpayrollhoursaconserv-ativenormofmany7rmsx19actualbilledhours.The7gurethatresultsround-eduptothenext5isthemin-imumratea7rmmustchargeW