A 10x markup sounds accurate based on what I know about other costs. My friend’s dad runs a business that mostly hires veterans. That got him contract work for the government (not defense, keeping it vague on purpose) and he blew my mind when he told me the hourly rate they could get away with charging
The hourly rates include all the overhead and benefits. A 3-4x rate is common and aligns with costs in the private sector. An electronics lab employee is going to have a much higher overhead rate if they work in something like a clean room or with expensive equipment their rates can be in the 5-8x range.
A 10x markup sounds accurate based on what I know about other costs. My friend’s dad runs a business that mostly hires veterans. That got him contract work for the government (not defense, keeping it vague on purpose) and he blew my mind when he told me the hourly rate they could get away with charging
The hourly rates include all the overhead and benefits. A 3-4x rate is common and aligns with costs in the private sector. An electronics lab employee is going to have a much higher overhead rate if they work in something like a clean room or with expensive equipment their rates can be in the 5-8x range.
As the guy in question said, “it’s the same exact thing we do for Amazon but 6 times the price”
No clean room or special equipment as they’re buying labor, not electronics
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