Quote:
Originally Posted by GP_Matt
It depends a lot on the industry, but I think the restaurant industry typically has a labour cost around 25-30% of revenue. I am pretty sure that the profit margin of a restaurant is nowhere near 30%.
It sounds like you are looking at it as I am a (insert job here) and my company bills my time out at $100 per hour and only pays me $50 an hour which doesn't seem fair. Something to consider is what are the costs to maintaining me as an employee. I think that 25% of salary is pretty close so if you are paid $50 then the company likely spends another $12.5 an hour on things like benefits, vacation time, Christmas parties, payroll deductions, training, sick pay, and things like paying Ceridian to make sure are paid, maintaining an HR department and legal counsel in case you decide to harass someone. On top of that you have all the other business expenses like advertising, rent, supplies, receptionists, phone, internet and utilities and the thousands of other expenses the business incurs.
What industry are you in?
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Not exactly... this is more about from an employer standpoint as I said before.
Really just wondering if any sales managers have a read on what is a "good" ROI.