{"id":36,"date":"2010-05-31T16:35:02","date_gmt":"2010-05-31T20:35:02","guid":{"rendered":"http:\/\/nspg-software.com\/wordpress\/?p=36"},"modified":"2010-05-31T16:35:02","modified_gmt":"2010-05-31T20:35:02","slug":"calculating-your-hourly-charge","status":"publish","type":"post","link":"http:\/\/nspg-software.com\/wordpress\/2010\/05\/calculating-your-hourly-charge\/","title":{"rendered":"Calculating Your Hourly Charge"},"content":{"rendered":"<p><span style=\"font-family: Verdana;\">One\u00a0 critical factor in achieving profitability is accurately setting your selling price with your desired Profit Percentage.\u00a0 Many businesses use a markup method to add their Profit Percentage to their breakeven.\u00a0\u00a0This will always yield a smaller than expected Profit because it is based on a percentage of the breakeven.  You should calculate your Profit based on the Sell Price of your services.<\/span><\/p>\n<p>Here&#8217;s the correct way to calculate your sell price from your established breakeven and target profit percentage.<\/p>\n<p><span style=\"font-family: Verdana;\"><strong><span style=\"color: #ff0000;\">Sell Price<\/span> = <\/strong>Breakeven \u00f7  \t\t\t\t\t\t\t(1-Profit %)<\/span><\/p>\n<p><span style=\"font-family: Verdana;\">For example: 25% Profit and $150  \t\t\t\t\t\t\tBreakeven<\/p>\n<p><strong><span style=\"color: #ff0000;\">Sell Price<\/span>: <\/strong>$150 \u00f7 (1 &#8211; .25) = $200<br \/>\n<strong><span style=\"color: #ff0000;\">Sell Price<\/span>: <\/strong>$150 \u00f7 (0.75) = $200<\/p>\n<p><strong><span style=\"color: #ff0000;\">Profit<\/span>:<\/strong> $200 &#8211; $150 = $50 <\/span><\/p>\n<p><span style=\"font-family: Verdana;\">You can check that the Sell Price you calculate yields the correct profit percentage by dividing the Profit amount by the Sell Price.<\/span><\/p>\n<p><span style=\"font-family: Verdana;\">($50<\/span><span style=\"font-family: Verdana;\"> Profit) \u00f7 ($200 Sell Price) = 25% Profit<br \/>\n<\/span><\/p>\n<p><span style=\"font-family: Verdana;\">Of course, this calculation assumes that you have accurately determined your breakeven, but that&#8217;s for another post.<br \/>\n<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One\u00a0 critical factor in achieving profitability is accurately setting your selling price with your desired Profit Percentage.\u00a0 Many businesses use a markup method to add their Profit Percentage to their breakeven.\u00a0\u00a0This will always yield a smaller than expected Profit because &hellip; <a href=\"http:\/\/nspg-software.com\/wordpress\/2010\/05\/calculating-your-hourly-charge\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[7,9,6,10],"class_list":["post-36","post","type-post","status-publish","format-standard","hentry","category-nspg-news","tag-break-even","tag-breakeven","tag-profit","tag-selling-price"],"_links":{"self":[{"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/posts\/36","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/comments?post=36"}],"version-history":[{"count":8,"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/posts\/36\/revisions"}],"predecessor-version":[{"id":44,"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/posts\/36\/revisions\/44"}],"wp:attachment":[{"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/media?parent=36"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/categories?post=36"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/nspg-software.com\/wordpress\/wp-json\/wp\/v2\/tags?post=36"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}