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	<title>PMServicesNW &#187; profit margin</title>
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	<description>Free project management information and downloads</description>
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		<title>Travel Time and Expenses</title>
		<link>http://www.pmservicesnw.com/2010/12/travel-time-and-expenses/</link>
		<comments>http://www.pmservicesnw.com/2010/12/travel-time-and-expenses/#comments</comments>
		<pubDate>Sat, 01 Jan 2011 06:16:59 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cost]]></category>
		<category><![CDATA[Planning]]></category>
		<category><![CDATA[Pricing]]></category>
		<category><![CDATA[Profit Calculation]]></category>
		<category><![CDATA[profit margin]]></category>
		<category><![CDATA[Travel Expenses]]></category>
		<category><![CDATA[Travel Time]]></category>

		<guid isPermaLink="false">http://www.pmservicesnw.com/?p=2276</guid>
		<description><![CDATA[By Ray Myers, Jr., PMP Do you plan for travel time and travel expenses when bidding, proposing, or planning projects?  If not, you should and here is why. Let’s say that you are bidding a 4 week project that will that will be accomplished entirely at your customer site in another state.  Your on-site resource will work 40 hours each week and your billing rate is $200 per hour.  Your revenue for this project is: 4 weeks x 40 hours per week x $200 per hour = $32,000.00 You are planning for your on-site resource to fly to the site each Sunday and return home after work on Friday.  Your resource will post 4 hours to the project each Sunday and Friday for travel time. The burdened labor rate for your on-site resource is $80 per hour Your Travel expenses are based on the following assumptions: Airfare:            $400 round trip Hotel:               $120.00 per night or $600 per week Rental Car:       $175 per week Meals:              $50 per day or $250 per week Parking:           $20 per day or $100 per week Using these calculations, your resource will post $1,525 each week to the project for travel expenses or $6,100 total expense [...]]]></description>
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		<title>Project Pricing &#8211; Margin</title>
		<link>http://www.pmservicesnw.com/2010/09/project-pricing-margin/</link>
		<comments>http://www.pmservicesnw.com/2010/09/project-pricing-margin/#comments</comments>
		<pubDate>Sun, 26 Sep 2010 03:52:46 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Cost]]></category>
		<category><![CDATA[Pricing]]></category>
		<category><![CDATA[profit margin]]></category>
		<category><![CDATA[project pricing]]></category>
		<category><![CDATA[use margin to calculate price]]></category>

		<guid isPermaLink="false">http://www.pmservicesnw.com/?p=1821</guid>
		<description><![CDATA[By Ray Myers, Jr., PMP According to the businessdictionary.com, margin is defined to be: the difference between the cost price and the selling price of a product.  In other words, margin is the profit earned on a business transaction. Margin is usually measured as a percentage of the selling price.  Thus the project manager might say, “We earned 30% margin on this project.”  There are 2 margin calculation formulas that every project manger involved with project pricing should know.   Use Margin to Calculate Sell Price Use this formula to calculate the selling price of a product or service when the cost and desired margin is known.  For the purpose of this example, assume the hourly cost is $100 and you want to calculate a selling price with 30% margin. Sell Price = Cost / (1 – Margin) Sell Price = $100 / (1 &#8211; .30) = $142.85 per hour   Calculate Profit in Terms of Margin Use this formula to determine the profit margin you earned on a project when the project cost and sell price is known.  Assume that your project cost $700 and you sent a $1,000 invoice to your client.  What was your profit margin? Margin [...]]]></description>
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