Re: Agency Response - margins

["David B. Demyan" <dbdemyan -at- WORLDNET -dot- ATT -dot- NET>]

Wilcox, John (Contractor) wrote:

[snip]

> It seems there is some confusion here about the term markup.  If the
>
> consultant is getting half of what the agency charges, that isn't a
> 50%
> markup -- it's 100%.  If the agency charges, say, $45.00 per hour,
> and
> the consultant gets $30.00 of that, that's a 50% markup.

John is right, of course, as it applies to the retail world. I wonder
what Mr. Ross intended by his original statement? It is possible I
took it the wrong way since we at Mendem Concord don't get too
riled up about markup vs. margin, etc. My original statement:
"I *don't* agree. Cutting the consultants rates down to
50 percent of billing to cover normal costs of doing business
is unfair" makes it clear what I feel is unfair. On the other hand,
John's example (agency charges, say, $45.00 per hour, and
the consultant gets $30.00 of that) seems appropriately
competitive.

Thanks, John, for the distinction. Believe me, I'm a better
writer than mathematician.

Dave.
--
......................................................................
David B. Demyan                                   Mendem Concord, Inc.
Toll Free: (888) 753-8500                            Technical Writers
FAX: (908) 756-0129                               Document Conversions
dbd -at- mendem -dot- com                                   http://www.mendem.com
......................................................................

 TECHWR-L (Technical Communication) List Information: To send a message
to 2500+ readers, e-mail to TECHWR-L -at- LISTSERV -dot- OKSTATE -dot- EDU -dot-  Send commands
   to LISTSERV -at- LISTSERV -dot- OKSTATE -dot- EDU (e.g. HELP or SIGNOFF TECHWR-L).
  Search the archives at http://www.documentation.com/  or search and
browse the archives at http://listserv.okstate.edu/archives/techwr-l.html