Sometimes as business owners we make choices we would not otherwise make, we allow fear and greed to influence our decisions. We all have that client who comes back and wants lower rates or maybe it is a new prospect that could lead to a BIG DEAL!
What numbers should we be looking at to know if we are truly making money so that we can work smarter not harder? If you are in the staffing industry knowing your numbers is critical if you want to stay in businss. The answer seems simple: if I have money in my account, I must be profitable and doing something right. Unfortunately it is not that simple.
There are 3 major components that you should consider before pricing new prospects or reducing current clients they are pay rate, gross margins and burden rate.
1.)Pay Rate – The amount the employee being staffed will make. 2.)Gross Margins -Money left over after all the burden and pay rate costs have been deducted. This is the money used to pay overhead expenses and owner’s profit. 3.)Burden Rate – Includes State Unemployment Tax, Federal Unemployment Tax, Social Security, Medicare Tax Rate and Workers’ Compensation.
Most people FORGET to add a few key items to the Burden Rate – Such as your Funding Cost, Sick Time, Paid Time Off, Health Benefits, Safety Equipment, On-Site, etc… All of these key factors play a significant role in the bottom line — between making a profit or losing money on an account.
WHAT IF there was a staffing CALCULATOR that you could punch in YOUR numbers and POOF you have the answer? Well no more what if’s, QUICK QUOTE solves that problem! Due to feedback from our current clients, we found there was a need to create something that at a glance could tell you if you are profitable or losing money.
QUICK QUOTE allows you to play with your MARK UP so you can make sure you are not throwing money down the drain anymore. It is mobile so you can take it with you wherever you go. Quote your client on the spot.
For more information or to set up a demo please private contact us!