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Depends on:
How much you want to earn
How much your subcontractor charges you
If the market will bear the mark up you have made on the subcontractor
Other than that I can't add much more I'm afraid!
Is he skilled at what he does?
Are you charging out at what you charge your-self out at?
If not why not
You can make a profit of £0.01 if you wanted to. Probably not worth it though. But it is still a profit.
chris said:
i think breaking even when subbing out is good enough sometimes considering the advantage of having increased availability, someone on hand for 2 man jobs, someone to do jobs youre not up to, not interested in, or simply would prefer not to do yourself. if you keep your subby on a fixed rate per hour you could profit from charging the customer per job maybe instead of charging an hourly rate.
Depends, how much paper work, organisation and planning goes on behind the scenes for you? TO be legit I would hazard a guess youve spent more time than £20's worth if you tallied it all up and accounted for it. If you billed your business for your admin time you may find that you actually make a book-loss on such a low labour gross profit. I would be looking to double that take to make it worth while on employing sub contracted exteral labour - that said, It is market specific to your area.
Yet again, I would say a solid case of Charging by the job is the way forward for both customer and business - Charging by the hour holds our industry back.
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