How to Price for Variable Cost? Bad Productivity?

Discussion in 'Growing and Managing a Business' started by LindseyInteract, Sep 4, 2015.

  1. LindseyInteract

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    Dec 16, 2014
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    Hello Guys,

    I run an internet marketing company and we provide internet marketing services for individuals and businesses. These types of services include Web Design, Social Media, SEO, etc.

    I am working with a new marketing director/partner and he is wanting to change how we do our service offering to more of a customized solutions instead of more of a cheap budgeted one like i had before, which is what i was doing and it was getting some hits, but nothing really significant, maybe $1,000 a month.

    The thing is, in this industry Content Writing is the biggest thing, and normally you can find some content writers writing on a per word basis and many which write on a hourly basis. The problem is those cost between the two are HUGE, I mean triple the prices or higher. Im trying to find out is it best to bring on like a person that can do multiple things and pay them on an hourly basis or is it best ot have multiple people all paid on a PER ITEM basis. As the problem with per hour basis, is the direct cost of all my services are dependable upon their productivity, it can go up or down.

    So, if you guys were running this type of company, how would you guys handle it, how would you build your team? If you go the hourly basis, how do you deal with the variable cost there associated with your services, as the only direct cost is the labor from your team, no actual ingredients or raw materials go into it.

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