How Do You Price Your Staffing Services? In this post, we explore how to determine the price you can earn for a particular kind of service.
Competitors
If the competitors in the kind of staffing or training you provide are relatively little, you can get a generous markup. However, if your competitors are many, your price is likely to be average for your area. Thus, considering the level of competitions in your kind of staffing industry is essential for effective staffing service markup.
Local standards
The geographical location of a particular type of service will also determine the kind of markup one can get. For instance, although markups in the industrial sector range from 30 to 65 percent in the Chicago, markups in the same sector appear to be a little lower in Indianapolis.
Client relationship
A more favorable billing rate should be given to the client who gives you a lot of business. Meaning that is, your markup for such client will be lower. In essence, the markup will definitely not be fantastic. However, you should always ensure to give special rates to high-volume clients and those that have been loyal to the company a long time.
Industry sector
Generally, the traditional staffing markets produce lower markups than the Information Communication Technology do.
How will you figure out how much to charge your clients? The charges for the three types of routine placements in this industry include; temporary, temporary to permanent and permanent placements. But we shall examine only temporary placement in this post.
Temporary placement
Three steps can be used in this type of placement:
- Figure out the pay rate. That is, how much it will cost you to pay an employee.
- Place a markup you are sure you can realize.
- The summation is the billing rate.
