Re: Agency Response - margins

Subject: Re: Agency Response - margins
From: Buck & Tilly Buchanan <writer -at- DHC -dot- NET>
Date: Mon, 19 May 1997 04:43:32 -0500

>
> It seems there is some confusion here about the term markup. If the
> consultant is getting half of what the agency charges, that isn't a 50%
> markup -- it's 100%. If the agency charges, say, $45.00 per hour, and
> the consultant gets $30.00 of that, that's a 50% markup.
>

It's possible that some confusion does exist because we didn't specify
how it's figured.

Markup in most businesses is figured on selling price, but I don't
really know how an agency does it. In my view a 50% markup on the
selling price is

BILLING RATE TO EMPLOYER: $80
PAY TO EMPLOYEE: $40


Buck Buchanan
writer -at- dhc -dot- net
Arlington, TX

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