AndrewMKP Posted November 3, 2008 Share Posted November 3, 2008 Anyone know a formula to work out a per customer profit? And also percentage? Cheers Andrew. 0 Quote Link to comment Share on other sites More sharing options...
othellotech Posted November 3, 2008 Share Posted November 3, 2008 Anyone know a formula to work out a per customer profit? And also percentage? amount paid by client - cost of providing service to client = gross profit from client 0 Quote Link to comment Share on other sites More sharing options...
AndrewMKP Posted November 3, 2008 Author Share Posted November 3, 2008 Yeah, I worked it out a slightly different way though. I did: Resource Cost / Available space (to get the value of 1) then times by customer package. Basically say my server costs £100 with 500GB HDD space and I charge my client £2 for a package. Thus the formula would be: £100 / 500 = £0.20 per GB Clients Package has 2GB so its £0.20 x 2 = £0.40 for that package. Then £2.00 - £0.40 = £1.60 Which is a 80% profit margin. That is if you are doing it on HDD space. It works for me anyway, how about you? 0 Quote Link to comment Share on other sites More sharing options...
othellotech Posted November 3, 2008 Share Posted November 3, 2008 That is if you are doing it on HDD space. You should also include that clients %age of your other direct costs - domain registrations, software licences, and indirect costs - office, coffee, lighting, support 0 Quote Link to comment Share on other sites More sharing options...
AndrewMKP Posted November 4, 2008 Author Share Posted November 4, 2008 Yeah of course but all in good time Cheers Rob 0 Quote Link to comment Share on other sites More sharing options...
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