WHEN YOU CALCULATE 5% OF PROJECT COST...

AND THEN ADD 20% PROFIT MARGIN AND

THAT WOULD BE OUR SERVICE COST..
 
TODAY EVENING I TOLD YOU GUYS TO DEDUCT THAT 20% PROFIT MARGIN WHICH IS
WRONG..ASHLEY TOLD ME THAT IT IS TO BE ADDED
 
SO OUR PROJECT COST WAS 83 LAKHS+ 20% PROFIT MARGIN ON THAT=COSNULTING
SERVICE COST
 
 
FOLLOW THIS ...WE WILL GET OUR SERVICE COST
 
 
 
2....USING THIS COST=(83 LAKHS+ 20% PM ON THAT)...now this amount you have to justify ,as we
cannot say that we have taken 5% of project cost IN OUR FINAL PRESENTATION, so
 
 
               PRICING STRATEGY HAS TO BE EXPLAINED,SO CALCULATE LIKE THIS: 22 DAYS IN A
MONTH WE NEED TO WORK (
(DEDUCT SAT AND SUNDAYS)
 
DEDUCT SICK LEAVE OF 7 DAYS AND 6 HOLIDAYS=DAYS WILL COME
 
SO FINALLY WE GET 256 DAYS ,NOW MULTIPLY THIS 256*8 HRS=2048 HRS
 
NOW YOU DIVIDE THE SERVICE COST(83 LAKHS+20% PM)=SAY IT COMES 99LAKHS
 
DIVIDE THIS 99 LAKHS BY 2048=RS 4863.6(HOURLY RATE)...NOW GUYS WE HAVE 5
CONSULTANTS,SO DIVIDE THIS AMOUNT BY 5..WE GET RS 966 ON HOURLY BASIS....
 
 
SO OUR PRICING STRATEGY IS DECIDED...NOW WE CAN INCLUDE THIS AMOUNTN OUR CASH
FLOW ON MONTHLY BASIS..HOPE U UNDERSTOOD