Client has offered double time - but is that double margins?

[hotmrw]

Hi everyone - could someone let me know how I should approach the following:

A client of mine wants my services on New Years eve - he has agreed to pay double time - Now my standard rate to the client is £14.50 Per Hour - Per Guard

So am I correct in quoting them £29.00 Per Hour Per Guard?

This is the first time this has come up and wasn't sure if my margins were doubled along with the Guards wages - I hope I have made myself understandable, I really dont want to make myself look an idiot to the client.

The clients exact words are "Double time paid and transport provided"

Thanks in advance eveyone

 

[Mark T Jones]

Does your client know what your margin is?

In reality you really should be clarifying this directly with the client

 

[hotmrw]

Well I charge the client £14.50 + VAT Per Hour - Per Guard - standard
they have offered double time paid - so am unsure if that would mean
£24.50 or £29.00 per Hour per Guard - this is an international company I am dealing with on a 12 month contract so I dont want to make myself look like an amateur as I earn a lot of money out of them -

 

[Mark T Jones]

Clarifying terms is never amateurish. Assumption is !

 

[deanpunchard]

Here's what I'd do...

Send them an email saying "We can confirm we can supply a guard on New Years Eve for £29.00 + VAT per hour."

That gives your client the chance to question it before it's too late if there is a misunderstanding, but you're also covering your own backside in a professional manor.

Your margins are not your client's concern, as I presume you don't disclose your wages and costs?

 

[Gecko001]

I get where the OP is coming from regarding sounding amateurish.

It is up to the OP to set his rates based on his costs and how much profit he wants.

 

[Mr D]

Work your costs out to see if you paying the staff extra is cost effective with the client paying extra. What you pay your staff is between you and them, not usually the client unless you let the client be involved.

 

[MikeJ]

I'm a bit confused as to how 14.5 x 2 can be anything other than 29?

 

[hotmrw]

I agree Mikej - that £14.50 x 2 = £29.00 - I was just not sure if the clients "Double Time Will Be Payed" would be for the guards only ( even though the client does not know how much I pay my staff ) at £29.00 P-H P-G my margins are also doubled not just the guards hourly rate - maybe this is a stupid question, I just never wanted to look an amateur to the client and be pulled up on something I should have known about - as previously stated this is an international client who I am keeping very happy at the moment -

 

[Awinner2]

Yes your margin will be doubled too but that's why you run a business after all.

 

[BenTargett]

Your income will be doubled, but your margin probably won't, as I assume you will need to pay the guard a premium for working during the premium time.

 

[AllUpHere]

Your income will be doubled, but your margin probably won't, as I assume you will need to pay the guard a premium for working during the premium time.

Lol, re-read what you wrote.

If the guard gets double pay, and the op gets double the usual rate, his margin will be double.

 

[MikeJ]

That depends on whether we're talking cash or percentage though.

I'd check you can get the guards to work on New Year's Eve.

 

[BenTargett]

Lol, re-read what you wrote.

If the guard gets double pay, and the op gets double the usual rate, his margin will be double.

AllUpHere - You're assuming the guard is also paid double time - All I said was a paid a premium

 

[AllUpHere]

AllUpHere - You're assuming the guard is also paid double time - All I said was a paid a premium

You are quite right. If the guard wants more than double time, the margin won't be double. I stand corrected.

 

[Jason Edge]

Here's what I'd do...

Send them an email saying "We can confirm we can supply a guard on New Years Eve for £29.00 + VAT per hour."

That gives your client the chance to question it before it's too late if there is a misunderstanding, but you're also covering your own backside in a professional manor.

Your margins are not your client's concern, as I presume you don't disclose your wages and costs?

This is a sensible and professional approach. Your client will soon let you know if they are thinking differently but at least it will be before the invoice lands on their desk

 

[Mr D]

Lol, re-read what you wrote.

If the guard gets double pay, and the op gets double the usual rate, his margin will be double.

And the employers NI?

 

[Mitch3473]

Here's what I'd do...

Send them an email saying "We can confirm we can supply a guard on New Years Eve for £29.00 + VAT per hour."

That gives your client the chance to question it before it's too late if there is a misunderstanding, but you're also covering your own backside in a professional manor.

Your margins are not your client's concern, as I presume you don't disclose your wages and costs?

Is probably the best way of approaching it. After that it's none of your clients business how the costs are broken down, he just wants a guard.

 

[JEREMY HAWKE]

Is probably the best way of approaching it. After that it's none of your clients business how the costs are broken down, he just wants a guard.

I agree and if it is a big company they wont as bothered about the ins and outs as much as you think.
They probably just want a price that's set in concrete with somebody they know than can depend on . It is not always about price