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Overhead Billing Rate

Anyone have any opinions on calculating a Billing Rate? Do you include overhead or not? Do you rate the person, the tasks, or the task by person?

Ann Marie Tullo Ph.D

We use a blended billing rate ($150/hr) for all people at all levels. This is for tracking the job progress only.

Ultimately we bill to proposal, which is a value pricing estimate. Sometimes we go over, many times we stay under. I have been tracking costs and margins for five years at the same company so feel confident in our pricing models.

Roxanne Cowan

This is the first realistic billing rate I have seen in all the messages about this subject. Responses ranged between $45.00 and under $80.

Joseph Notovitz Notovitz Communications

Does anyone have a method for computing what an employee costs the company? Some of the messages refer to "overhead" but how do you compute overhead (i.e., what goes into "overhead) and allot it to one employee?

Rachel Perez-Stable