Re: Agency Response - margins

Subject: Re: Agency Response - margins
From: "David B. Demyan" <dbdemyan -at- WORLDNET -dot- ATT -dot- NET>
Date: Tue, 20 May 1997 16:34:06 -0400

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
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