Streamline Your Traveling Format Billing for Security

Traveling format billing for Security

what's up guys let's talk about how to come up with your building rates [Music] what's up guys welcome to security guard command thank you for tuning in i appreciate you guys very much uh thank you for watching my channel if you haven't already please like this video uh subscribe hit that notification bell so that you get notifications when i post new videos today i'm talking about how to come up with the number that you bill your client and it's not as simple as coming with a number and then trying to fit your expenses into that number list your expenses first if you don't know how to use a spreadsheet definitely learn and here is the tool for the security rate calculator that i'm providing to you this is a simple spreadsheet you can run on google sheets or you can download it and use on excel or other spreadsheet applications let's get into it here is where you're going to put your liability costs fill out all the gray boxes the gray boxes will be your itemized expenses this is what costs you money every month the total amount that cost you money every month then it's going to total it up here then right here you you fill out the number of current clients that you have already and this uh this is going to then uh bring you to this total here this is the amount that's going to be billed to the client that you're trying to to acquire next thing you do here you fill out the the number of days per month that you're going to work for this client and then you put the number of hours per day that you're going to work for the client so this is a 24 7 set up here number of simultaneous guards working this shift that so if you're only going to put one guard at this shift at a time then you put one here if you want two guards working at this site at a time then you're gonna put two here the hourly pay that you're gonna pay the guard i just put 20 here you can put the rate that you're going to pay the guard so that's what this says here this is going to give you your gross regard gross pay total here's your employee burden percentage and it's average typically runs about 55 so uh you can change that if you wish but this is about what it normally would come out to that includes your taxes that you pay on on on the payroll that includes all of your liab all of your workman's comp etc now um this one here is how much you want to get paid per hour for this contract so you can adjust this number and see what the end result is this is going to impact your bottom line here total the bill if you change that it changes this number here this is the total to bill per month for your client this kind of gives you an idea of how much you should be charging uh in order to break even and to make and to make a profit so there you have it uh you want you don't want to be going under your expenses this is your total amount so here's your here's your spreadsheet so that's the spreadsheet there's a link in the description down below avail yourselves of this and use this tool to help you with a rate because you can total all of your expenses up in a column and then it'll add it up free at the bottom now you've got your base next thing you need to do is you need to figure out how many guards are crushed how many hours you're going to be working for the client that you're trying to bill that you're trying to provide come up with a number for and uh you go for a you go for a 30-day period uh or monthly now how many hours are you gonna be working for that client in one month time and let's say that you're gonna do eight hours a day 30 days out of a month or 30 we'll call it 31 days always bill 31 even though some months have less 31 days so you go 31 times eight now that is your number of hours that you're going to be working for that client in one month next thing you want to do is you want to figure out what you want to pay your guard so if you're going to pay your guard 20 bucks an hour then you're going to go 31 times 8 times twenty dollars and that's going to give you your um totally hourly rate for the for the guard that you're paying but that's not where it stops because you've got to think about payroll taxes and any other things that you pay it's called employee burden you've gotta you've gotta figure out what your employee burden is gonna be and usually roughly for most companies employee burden falls at around fifty percent of whatever the gross income of the guard that you're paying is so if you pay a guard a hundred bucks you can expect to pay fifty percent of that in employee burdens and that's uh so you're going to pay end up paying not 100 bucks but 150 bucks and that is um something that a lot of people don't think about when it comes to planning out a business and having employees so now you've got 100 you've got the you've got the the 31 days times eight hours a day times uh times twenty dollars an hour and then you gotta times it by 1.15 to add that 50 employee burden on there that is the number that your payroll is going to end up coming out to an employee burden for example are things like benefits um you got your insurances you've got your workman's comp all that stuff that applies to an employee all falls under employee burden so you've gotta you've gotta pay all that stuff so you gotta set aside for me personally i would calculate sixty percent just to give yourself a little padding and one of my goals when i start my company is i wanna add i wanna be able to provide my guards with pto paid time off i want to be able to provide them with health benefits i want to be able to provide them with bonuses so i bump up my employee burden number a little higher just so that i have that money going into an account where that can be used for my my employees down the road um so now that we've got that you've got your your payroll figured out now you have to figure out equipment costs you got to figure out um uniforms uniforms have to be replaced so you've got to budget in a certain amount of money for that stuff as well that's that's one of your expenses um so you don't have to put aside 200 bucks every month just for uniforms but it would be nice to be able to put a little bit away into an account so that when it comes time to replace uniforms you've got a savings going and it just adds up as it goes so account that in literally list every expense you can think if you've got cell phones that you provide the guards or you've got a radio service with a subscription pay you got to pay that subscription so you got to calculate that into your cost as well add up all your expenses once you've got all your expenses added up uh then you now have a uh what it costs you to operate now you got to figure out how much money you want to make on top of all those expenses so then you got to add your profit margin and i find it pretty common that it's uh usually five to ten bucks per hour that a guard works so now you add that five dollars or the ten dollars to it now that you've got your hourly build rate so now you you can take that and that's what you're going to charge your customer and unfortunately a lot of a lot of small companies they don't they don't think about all this stuff they just think oh i'm going to build 25 bucks an hour and they're going to call it a day but then they come to find out that their actual operation costs are 28 bucks an hour and they are in the red and now there's there are security companies struggling and they've made a contract and they can't get out of that so they look for ways to cut corners and try to get themselves back into the green on that and that profit margin they end up losing money rather than making money on that contract so that's a quick brief tutorial i've got a spreadsheet that i came up with and it's a little messy i'm going to clean it up and i'm going to share it with you guys and this spreadsheet will help you figure out how much to charge your company it's basically like a budget and it's going to help you figure out how much to charge your client to uh and how much to build them to make sure that your company is surviving anyway thanks for tuning in guys hope you have a great day i will catch you later don't forget to subscribe hit that notification bell and like comment and share thank you much