Calculating labor costs: pros and cons

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In principle, this problem is familiar to almost everyone who sells services. Pricing in sales of goods is subject to certain rules, everything is clear and unambiguous there - cost price plus trade markup, which will allow you to recoup costs and make a profit. The cost of your work consists of other components. This includes the time spent on fulfilling the order, and your knowledge, experience, investments in self-education. Therefore, even for the same service, prices for different specialists can differ significantly. There are two approaches to forming the cost of describing a business process: — Calculation of time spent; — Creation of service packages.

The first option is most often used by beginners. Its essence list of argentina whatsapp phone numbers is simple. You determine for yourself how much an hour of your working time is worth. Then, you predict how many hours the description will take. Do not forget to take into account that you will spend time not only on working with notation and text documentation, but also on interviews with employees, approvals, changes and clarifications. The resulting figure can be given to the customer as the price of the service. Estimating labor intensity based on time spent is a universal and popular solution.

But it has its own shortcomings: — It will be difficult for a newcomer to adequately estimate future labor costs. Moreover, an inexperienced person will most likely spend more time on work than is objectively necessary, simply because he will make mistakes, correct, double-check, etc. — A professional, on the contrary, will use ready-made developments, apply some previously created templates, etc. As a result, the work will be done much faster, but surely it is not cheaper to estimate it than the long work of a beginner? Yes, the difference is partially compensated by the increase in the cost of an hour of work, when assessing it is possible not to take into account the fact that in reality ready-made solutions will be used.