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Markups/Billable Hours

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6 posts
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Kim Shreve
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Hi all,

What is your current markup percentage for outside purchases, and do you have one markup across the board?

Also, if you charge a markup on printing, for example, do you bill for the Production Manager's time (quoting/sending jobs to print/Purchase Orders/proof review, etc.)? Is the Production Manager function non-billable?

Thanks for any input.

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DebB_SW
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Hi - According to Second Wind's 2014 Annual Agency Survey Report , agencies are achieving an average markup of around 20% on printing, photography/illustration, and other outside services. Regarding billing production manager time, the answer is yes, bill whenever the PM works on specific client jobs, like collecting estimates for a print job, or sitting in on client-specific meetings. The average national hourly rate for production functions is $120. The same applies to every agency employee; if they are working on a client assignment, bill the time!

You can download a copy of the Report here: https://www.secondwindonline.com/2014-annual-agency-survey-report

Hope this helps.

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Sherma
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We bill a 15% markup on printing, but there are times when we garner more. I feel like a PM's time is really valuable, so, yes! bill it!

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Member 4336
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Absolutely markup product, lest you just want to be the bank for the client. We use a 25% markup on all outside services. Mind you, that does NOT mean the Price x 1.25. Instead, you're trying to achieve a 25% AGI on the printing of the job. Look at Tony's excellent explanation of markup math.

And, yes, production supervision is a separate billable item.

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Member 2898
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We typically mark-up 15-20% on outside services plus bill the time to manage production.

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bill_jr
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For straight collateral and production, you should mark-up outside costs 1.43% which gives you a 30% AGI.

That's the recommended Second Wind Formula. Sometimes this is not always possible. Use common sense.

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