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Features   
Calculate rates for any equipment or service
Calculate budgeted hourly rates for any printing and packaging equipment or service.
Gain insight into your true costs
Get a detailed breakdown of every cost component that composes your hourly rates.
Works with any estimating software
Provides budgeted hourly rates (BHRs) required by any estimating & costing MIS/ERP software.
Fast and easy
No accounting knowledge needed. Update your budgeted hourly rates in just minutes!
Benchmark against other companies
Benchmark your labor, factory, and overhead costs and BHRs against other companies.
Increase Good Sales, Eliminate Bad Sales
Win more orders with higher profit and contribution margins.
Built-in industry "Blue Book" rates study
Includes cost and rates studies for thousands of equipment and services for comparisons.
Import your data
Effortlessly import your spreadsheets, income statements, budgets, and other data.
Find the best pricing strategy
Create various cost and material markups and pricing strategies using your budget.
Project your profitability
Create income statement based on your budget with projected profit margins and ratios.
Create multiple sets of rates
Manage rates and costs for multiple companies, divisions, locations, or what-if scenerios.
Track changes in costs and rates
See how your rates and costs have changed over time and why.
Satisfaction guarantee or your money back!
If you're not happy within the first 30 days, for any reason, we'll refund all of your money.
FREE expert consulting support
You receive support from a real live Profectus industry business consultant, for any reason.
Makes Spreadsheets Obsolete
Cost Rates Advisor is considerably easier, faster, and more reliable than spreadsheets.
Secure, Protected, and Confidential
Profectus employs strict security policies to your account and data.
Works anywhere you do 24/7/365
Cost Rates Advisor runs in the cloud. Use it anywhere with a browser and internet.
Frequently Asked Questions
The answers to common questions about budgeted hourly rates and Cost Rates Advisor.
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Implementing An Effective Cost-Plus Pricing Strategy

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Cost-Plus pricing is indisputably the most common pricing technique used by printing organizations. A cost-plus pricing strategy is pretty much what the name implies. You set a price by estimating your costs and add a markup to get the sell price. The markup should include a desired profit-margin, unless you are a non-profit organization. If you set prices below your cost, you will not generate enough revenue to cover all of your expenses. Set the price too high and customers will go to your competitors to get a better deal.

Most companies use cost-plus pricing because it’s simple to understand and implement. Just calculate your out of pocket costs, add a reasonable markup, and you have a price. But cost-plus pricing is more complex than many realize.

Sure, it’s easy to determine your paper cost and other purchases. The real challenge is estimating your internal out-of-pocket costs such as employee expenses, equipment operating costs, utilities, sales and administrative costs, and the other 100+ expenses required to produce a customer’s order.

The only effective way of estimating internal costs is with accurate budgeted hourly cost rates. Nevertheless, most companies estimate cost with erroneous or outdated cost rates that don’t reflect their true costs.

The primary objective of budgeted hourly cost rates is to ensure 100 percent of all out-of-pocket costs are recovered with chargeable production hours. If you estimate or sell 5 hours of press time, then part of your out-of-pocket is recovered in those 5 hours.

There are several industry best practices for calculating budgeted hourly cost rates. The methods and formulas vary based on a number of factors including the type of expense, the type production equipment, employee pay rates and benefits, how often a machine runs, the depreciation of equipment, and many other considerations. Calculating budgeted hourly cost rates can be perplexing and challenging, often requiring the help of someone with accounting expertise.

Profectus’ has developed budgeted hourly cost software called the Cost Rates Advisor www.costratesadvisor.com with simplifies the process. The Cost Rates Advisor has an easy user interface, pre-programmed formulas and industry best practices. A Data Import Wizard saves hours of data entry by importing income statements, payroll reports, and other data.

Accurate budgeted hourly cost rates provide a true picture of out-of-pocket costs so you can effectively price jobs using a cost-plus strategy. Ultimately making your shop more competitive and profitable.

By: Craig L Press
President
Profectus, Inc.


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Profectus, Inc. · Sarasota, Florida · United States · Phone: 1-888-868-8662
Business management consultants specializing in the printing & packaging industry since 1993.
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