How to peg rate on service subbing
I have a service business as a sub, where the margins get eaten up on smaller job by driving time and there needs to be someone cracking the whip on a crew for the prime to make good money, I offer subbing on this and I can match the margin 1:1 of the prime...
However as the jobs get longer the margin climbs as drive and downtime + fixed costs become a lower % of the total cost for the prime and eventually they go from like, 30% margin on a 1h job, to 50% on a 2h and up to like 55% on 3h+... I can't make any money matching that margin, the hours are per crew so a "3h" is actually like 9 man hours, sure I can probably do it in 7 if I am crushing, but generally I am looking for a competitive pricing plan that I can approach the prime with that makes subbing look appealing for those up to 9h jobs, talking per hour is not working because once the jobs get bigger it would end up being way more expensive than their crew. Fixed costs for me are about $100 per day and it's in canada so we are dealing with about 30% tax on any labor.