Hourly Labor Rates

Chris SmithsmartPRENEUR Blog Series

What to charge clients for integration labor?

It’s a two-way street that impacts what the integrator can afford to pay an employee and thereby retain that employee. And then there’s what the client “will” (or presumably “won’t”) pay. If that number is low then the pay, and likely quality, of that given employee will be low. Is that ultimately what the client desires?

It also makes sense to charge less for lower skilled work and higher for more skilled work. Usually Technicians, Service Technicians, Engineers, Programmers, and Project Managers all command different rates as employees and should be billed out accordingly. Average out salaries for each department or role type and charge as needed. As departments aren’t equally distributed (weighted or used) on a project it makes sense to bill them separately.

Here’s a chart to keep it simple!

Employee Pay vs. Customer Charge Chart, courtesy of Chris Smith

About the Author

Chris Smith

Chris Smith is the Principal and Founder of TheCoTeam. Bringing 20 years of industry experience to the custom installation space, they Coach | Consult | Collaborate with integrators and manufacturers to solve problems and run a more efficient business.

Website:   http://thecoteam.com