Topic

Messages

Rate Analysis

We are currently going through an analysis of our rates, both net and bill. We're trying to get an "industry" feel for typical net-to-bill ratios for account service, creative and production. Has anyone conducted this type of study and, if so, what are the prevailing ratios?

Note: Net = Fully loaded hourly wage rate, reflecting base wages plus all fringes Bill = Hourly bill-out rate

Thanks! ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Ryan Niles Controller tbd advertising

RE: Rate Analysis We use Second Wind and their studies.

Wendy Lokan

We use for cost basis the annual salary divided by 1640 hours to come up with cost rate and bill at 3X times that number

Steve Orenstein

We, at Benton Newton Advertising, review the Agency Survey book produced each year by 2nd Wind Network. This pub gives the industry rates in our particular area. We use this as a benchmark.

Good luck,

Felica S. Henry Benton Newton & Partners Office Manager

We use a ratio in the range of 3:1 to 4:1. This seems to be the advice given by both David Baker (financial and business consultant to design studios) and Cam Foote of "Creative Business". We are a design studio located in Laurel, MD, between the Washington, DC and Baltimore metro areas.

--Kay Rosburg, V.P. Dever Designs, Inc.

We use for cost basis the annual salary divided by 1950 hours (37.5 hrs per week X 52)to come up with cost rate and bill at 3X times that number - usually rounded up to the nearest round number.

Laney Gutstein Controller, The Gary Group

We've used the 3x salary+benefits as our starting place, seems to be CPA recommended and from others.

Visit our website to learn more about the art and science of branding, and how we have created successful brand programs for clients in many industries.

Jennifer Larsen Morrow marketing being Creative Company, Inc.
www.creativeco.com