When I started in business, I learned that you should charge out employees 3x salary or better is a good rate if you wanted to grow and be viewed as a viable service business. If you charge out at 2x salary you are going to roughly breaking even at the business level. If you charge out less than 2x salary it is a going out of business rate.
I think this is still reasonable advice.
The reason is there is significant overhead. In benefits, support services, equipment, employer matching taxes, HR, building, hiring, write-offs, and even getting the contracts and maintaining them. It is hard to charge out the time of someone negotiating the contract, or dealing with customer complaints, sending out billing, following up on unpaid bills (collections), not to mention the cost of sales, etc.
I think this is still reasonable advice.
The reason is there is significant overhead. In benefits, support services, equipment, employer matching taxes, HR, building, hiring, write-offs, and even getting the contracts and maintaining them. It is hard to charge out the time of someone negotiating the contract, or dealing with customer complaints, sending out billing, following up on unpaid bills (collections), not to mention the cost of sales, etc.