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Subject:RE: agency markups - from a hirer's perspective From:jgarison -at- ide -dot- com To:"TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com> Date:Thu, 8 Aug 2002 16:08:09 -0400
Agreed. Back in my days of working for an agency (12 years ago ...), the
minimum markup was 33% ... maximum was whatever you could get the client to
pay.
John
-----Original Message-----
From: Andrew Plato [mailto:gilliankitty -at- yahoo -dot- com]
Sent: Thursday, August 08, 2002 2:40 PM
To: TECHWR-L
Cc: stevens -at- amdocs -dot- com
Subject: Re: agency markups - from a hirer's perspective
<stevens -at- amdocs -dot- com> wrote in message news:164588 -at- techwr-l -dot- -dot- -dot-
> Note also that in this case I did the finding, not the agency. But there
> could be future cases where they will have to do the screening. What's a
> fair addition for that service?
For w-2 employees, you can expect that 15% is required just to cover the
federal
and state taxes. This will vary from state to state a bit, but you can
probably
count on about 15%.
Then there is the overhead of processing the paperwork. That depends on how
many
people you're contracting, how many support people there are. Most places
charge
10% to 25% for overhead.
Then there is profit. Got to allow for a profit margin, otherwise its a
pointless
endevour. A 10% profit margin is pretty good for staffing.
Put it together 15+15+10 = 35%. If they want $50 an hour, you should bill
$67.50.
But $70 to $75 would not be outlandish either.
Andrew Plato
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