RE: The age-old markup question, with a twist

Subject: RE: The age-old markup question, with a twist
From: "Lauren" <lt34 -at- csus -dot- edu>
To: <steve -at- writersbookmall -dot- com>, "'techwr-l'" <techwr-l -at- lists -dot- techwr-l -dot- com>
Date: Mon, 6 Aug 2007 11:11:25 -0700

Do you mean like employment placement mark-up? For my lovely town of
Sacramento, it seems to have averaged at 40% for W-2 employees and 33% for
Corp-to-Corp. Agencies get paid like lawyers, but without actually having
to do very much work. Lawyers tend to get 33% for litigation that settles
and 40% for litigation that requires a court appearance. During the
dot-bomb era, some agencies would take 75% according to some of the
employees that discovered the mark-up and talked about it.

Both companies that require temporary employees and employees have become
very disgruntled by inconsistent mark-ups because a company could pay Agency
A $100 an hour and receive a $50 per hour employee or pay Agency B $80 per
hour and receive a $53 per hour employee. The company may have the mindset
that it will pay *any* cost to get the best employee and the agency will
find the employee that meets the requirements but provides the best
profit-marging for the agency. So the company might go with Agency A but
have an all around better bargain with Agency B and not know it if Agency A
had also had a better sales pitch. Agencies that charge higher mark-ups can
afford better sales and marketing people. Now, both companies and employees
want consistency in the mark-up.

Finding a consistent mark-up can be a tricky gamble because if you settle on
a mark-up that is too low, then when you have an employee that requires
special needs, like relocation or tools that your company needs to provide
according to a contract, you will have difficulty managing that cost with a
bare-minimum mark-up. You may need to pass on good opportunities if you can
afford to meet the requirements because your "standard" mark-up is too low.


> -----Original Message-----
> From: techwr-l-bounces+lt34=csus -dot- edu -at- lists -dot- techwr-l -dot- com
> [mailto:techwr-l-bounces+lt34=csus -dot- edu -at- lists -dot- techwr-l -dot- com] On
> Behalf Of Writers Book Mall
> Sent: Sunday, August 05, 2007 2:24 PM
> To: techwr-l
> Subject: The age-old markup question, with a twist
> Hi, all.
> For reasons too obscure to mention, a client wants my
> low-markup payroll agency to charge them a "standard"
> markup.
> For reasons even more obscure, this is actually
> relevant to me. (I say this so that those who would
> normally respond, as I would, with "the agency markup
> is irrelevant to you" will understand that this
> doesn't apply in this case.)
> So, what is the range of "standard" markups for an
> agency these days?
> Thanks!


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The age-old markup question, with a twist: From: Writers Book Mall

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