How can I justify my service rates?
By Abner Huertas *This is my first post in english In 2010 a customer asked me the following question: —How can I justify the rate I charge to my clients?— That’s really a good question, specially in a shared services company. Our customer wanted to demonstrate that his rates were fare, but the question kept revolving in his head because they didn’t knew how to do it, every begging of a year the CEO of each company they deliver services asked how their rates were integrated, they wanted to know why they have been charged the amount written in the bill. We went to the white board and start designing how to justify the rates. A rate is composed, at least, by five components or sub-rates, these are: Operational rate. Supervision rate. Infrastructure rate. Administrative rate. Corporate rate. Let’s quickly examine each one. Operational rate An operational rate identifies how much your service cost to operate, in other words, how much it costs your direct