Being Profitable and Controlling Costs
Pricing your work incorrectly is one of the most-common strategic errors. Does your labor rate reflect your cost of doing business with a percentage of profit for the amount of billable hours, or is it a number that is comparable to or cheaper than your local competition? Do you know what the fiscal burden is for each employee? Do you know what it costs to turn the key in the door every day, so that your pricing reflects the absorption of those costs plus a correct profit percentage? These are all vital data without which you have no way to price your work correctly.
