EP03 PI Pricing pt.1
Update: 2019-04-04
Description
On this episode, I begin our discussion on pricing strategies for private investigators. How to price services is an issue every PI I know has had an issue with, including myself. We start by taking a look at a common used method of pricing commodity services, Cost Plus Markup, and lay the groundwork for some more complex strategies coming up in later episodes.
Direct Cost + Indirect Cost = Cost of Service
Total Revenue - Cost of Service = Gross Profit
Gross Profit/(Revenue x 100) = Gross Margin
Indirect Costs/Gross Margin = Breaking Even
Apply Markups based on profit goals divided by units sold
Direct Cost + Indirect Cost = Cost of Service
Total Revenue - Cost of Service = Gross Profit
Gross Profit/(Revenue x 100) = Gross Margin
Indirect Costs/Gross Margin = Breaking Even
Apply Markups based on profit goals divided by units sold
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