The new salaries feel very unbalanced for web programmers, based on the default fee of $115.
It’s similar for Lawyers, but for them, I was able to staff up with 70% or less skilled Lawyers and make a profit at a few locations, but I am trying to do so for Programming. The starting “Fee” for a programming hour is $115, but I am struggling to find a programmer that will make that number profitable. Anyone over 40% skill seems to demand $150 or much higher, so I am trying to find people in the 20% for skill just to hope to break even.
Yeah, how are the new service firm hourly labor rates supposed to work? Have you been able to raise the bill rate substantially above the market rate to compensate for the high labor cost? In beta 2 or 3 I could only raise the bill rate ~20% above market before the pricing satisfaction dropped significantly. Also, the Lawyer annual earnings seem unrealistic only partners make ~$600,000-$1+ million/year it should probably be closer to $200,000-$400,000/year on the high end and $125,000-$150,000 for lower skill.
Hourly Rate for 100% Lawyer: $354/Hour, Market Bill Rate: $225/Hour
- Billables: $450,000/year (2,000 Hours)
- Salary: $708,000/year (2,000 Hours)
- Net: ($258,000)/year
Hourly Rate for 100% Programmer: $164/Hour, Market Bill Rate: $115/Hour
- Billables: $230,000/year (2,000 Hours)
- Salary: $328,000/year (2,000 Hours)
- Net: ($98,000)/year
It appears that you have much more room to increase the hourly bill rate. So, you can have $1,000/Hour bill rate law firm before pricing satisfaction goes down not sure how it works if you mix high and low skill lawyers. Need to test more to see what the optimal bill rate might be.
Sounds like you have figured out the basics.
One other thing is that it depends on the district you’re in. The Garment District won’t tolerate as high prices as midtown or Murray Hill. For Garment District, to be profitable, you might not be able to hire high-skill lawyers.
But it also depends on the customer demand and such, so experimenting is the best way to figure out what works best for each store!