Creative Online Services

Our competitive advantage is our affordable product, and the speed of delivery of our product, service satisfaction and handling customer complaints, knowledge of our product and service, helpful and friendly employees, a conveniently locally based and operated company, and our exclusive internet marketing service for real estate in cos-homes.com.

Price is determined to maintain the quality of our service, to obtain successful expansions to surrounding market areas such as Denver and Pueblo, and to continue to be creative and develop new marketing strategies and innovations in technology for real estate professionals.  At the same time we offer new job opportunities that fuel economic growth and prosperity in our community.

Service Cost Components

Material, labor and overhead make up the total cost of any product or service.
Travel time and fuel is another cost that is usually charged to the customer, but generally at a lower rate.

Material Costs

Though our material cost are low, due to our focus being an online service, there are unseen material costs for operating an online business, computers, printers, office and photography equipment, replacement and upgrade costs, internet hosting space and online exchanges, Internet service for the office and domain and search engine placement, for some services there are tangible materials such as printed color property flyers, and the cost of the color cartridges, obtaining PDF files online, etc.

Overhead Costs

Any cost not readily identifiable with a particular product is overhead. These include indirect materials and indirect labor, such as maintenance, supplies, repairs, heat and light, depreciation and insurance. These are not charged to direct labor, but must be included as a cost. Examples are clerical, legal and advertising services and supplies. Insurance, taxes, rent, advertising and transportation are also overhead costs.

Labor Costs

This is the cost of the work that goes into the manufacturing of a product. An example is the wages of all production line workers. The direct labor costs are derived by multiplying the cost of labor per hour by the number of man-hours needed to complete the job. Remember to use not only the hourly wage, but also include fringe benefits. These include: social security, workers' compensation, unemployment compensation, insurance, and retirement benefits.

Figuring Costs And Profits For A Consultant Service

Pricing services, where your own labor or expertise is used, is different from pricing services that use materials and other labor. For instance, most consultants price their services by the hour. Senior consultants charge more for their time than do their less experienced counterparts.

Remember to charge for an adequate number of hours. Travel time is usually listed as an extra charge.

Therefore, hourly or contract fees must be set high enough to cover expenses during slow periods. That is why one-half of the total normal working hours for a given year are used in figuring overhead rates. Try to obtain long-term, monthly, or contract assignments when possible.

Summary

Your pricing structure and policy are major components of your public image and are crucial to securing and keeping your clientele.

Pricing for service businesses may be more complex than retail pricing. However, the result is the same: cost, and operating expenses, and desired profit, equals the service's price.