Following up on this a little late, here are some stats that I got from "The Savvy Designer's Guide to Success" by Jeff Fisher. The numbers can be changed out, but I think the formulas and logic all sound good.
- You have about 2,080 work hours in a year (8 hours a day, 5 days a week, 52 weeks a year) - Set a target salary (example $40,000) - Figure in other associated costs like taxes, FICA, insurance, etc. A safe figure is 25 to 30 percent ($12,000) - Figure in holidays, sick days, legal holiday (example: 7 legal holidays-56 hours; 2 weeks vacation-80 hours; 5 sick days-40 hours; total 176 hours) - Subtract the 176 hours from the work hours (leaves 1904 hours) - Figure time in for day to day office things like invoicing, sales calls, surfing the net, reading articles (example 25 percent - 476 hours). Then subtract that from your billable hours (leaves you with 1428 billable hours per year) This brings the total cash flow needed to $52,000. You have 1,428 billable hours to make this in. $52,000/1,428 = $36.41 per hour billable rate I'll deviate a litte bit from the book at this point. - Figure in cost of overhead - rent, utilities, phone, computers, software, etc. ($35,000 for example) $35,000 + 52,000 = 87,000. $87,000/1,428 = $60.92 per hour billable rate - Figure in profit you would like to make, somewhere between 10 & 20 percent. $60.92 + 10% = $67.01 So this particular example needs to bill hourly at about $67. Hopefully that helps everyone. Brian Mays _______________________________________________ [email protected] To change your subscription options or search the archive: http://chattyfig.figleaf.com/mailman/listinfo/flashcoders Brought to you by Fig Leaf Software Premier Authorized Adobe Consulting and Training http://www.figleaf.com http://training.figleaf.com
