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how do you guys bill-out the cost of your outsourcers?

by tonywarrior2
5 replies
Hi
most of us have outsourcers working for us from $2 - $5 per hour or higher. Most of the work my guys do is fixed price (my favourite), though I have done it on an hourly basis with one person that I trust.

I bill my management time at my quoted rate to the client.

I have a fixed price to the client for specified tasks and so it's then down to me to negotiate with the worker. So there's no issue there.

But for project work, how do you bill that cost to the client?

Do you just apply your hourly rate to the number of hours the outsourcer works for you?

Or do you apply a formula? I was thinking for fixed projects of a multiplier of the outsourcer's cost.

Any thoughts? Thanks.

Tony
#billing #billout #cost #guys #outsourcers
  • Profile picture of the author MaxwellB
    You don't have to bill your client any special way depending on how you pay your outsourcers.

    If your working on a project basis with a client and your project price to them is $1000 bill them for $1000.

    What I'm saying is your client shouldn't know what your paying to get the work done. They don't need to know its not their business. And you don't have to price your services based on what you pay an outsource. Price them based on what you can get.

    Just because an outsource can make a website for $250 doesn't mean you just multiply it by 2 and call it a day. Sell it for what it's worth, make some money, $1000,$2000
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  • Profile picture of the author stone2010
    I agree with Maxwell... If something cost $100 to make doesnt mean sell it for $200 or $300 you need to realize you are dealing with the client. Your time cost money so keep that in mind when you upsell your services, you are the one dealing with the client on a daily basis not your outsourcer so make it worth your while.
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  • Profile picture of the author Chad Kimball
    when I was first getting started (I don't really work "hourly" anymore except for $500/hour type personal consultations) I just billed the hours my outsourcers worked at the exact same rate I billed for myself.

    Originally Posted by tonywarrior2 View Post

    But for project work, how do you bill that cost to the client?
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    • Profile picture of the author tonywarrior2
      Originally Posted by Chad Kimball View Post

      when I was first getting started (I don't really work "hourly" anymore except for $500/hour type personal consultations) I just billed the hours my outsourcers worked at the exact same rate I billed for myself.
      Yes that's more or less what I am doing.
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      • Profile picture of the author Chad Kimball
        if you bill yourself out at a high rate, that is a HUGE profit! keep at it

        Originally Posted by tonywarrior2 View Post

        Yes that's more or less what I am doing.
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