How we evaluate whether we should charge an Amazon customer in variable

For years I have not been a big fan of the variable model. My perception has always been that the client wants to turn their problems into yours. It is also curious that the topics on this blog do not age. I have been writing it for  . The content from back then is still valid, but as is most of the time.

These last few days, so as not to have to get up even earlier, I’ve been posting the morning post in advance during the day. That’s what I’m doing now, but don’t think I’m getting many more minutes.

Let’s get (a little more) to the heart of the matter

In the end everything is relative and even better: it can be calculated.

1. How much time are we going to spend each month with this client? Today we don’t estimate a total, but rather think in categories like “a lot” or “a little.” This is something we definitely need to improve. It would be as simple qatar whatsapp number data as estimating, for example, 30 hours per month and then putting in what you want to earn per hour. With this you already have a theoretical figure of what you would have to charge the client for it to be profitable for you.

How much does the client invoice?

Or also. How much could this client invoice this will help you convey accurate with their products? Depending on this figure, you already know if you will be able to charge a variable that makes sense for you. Let’s say that they invoice 200,000 euros/month.

1. Here we can begin the debate as to whether it should be more of a contribution margin, as we do at AGP. If I think about it, it is a model that we are already applying there today. Now we set the percentage.

Set a percentage of gross turnover.

Let’s say 1.9% because it is a psychological egypt data figure, since it is less than 2%. In this case, as an agency, you aspire to earn a little less than 4,000 euros per month. If it fits with the figure below 1.0, you can then go ahead with the proposal, which is based 100% on a variable.

It’s not complicated, is it? I didn’t imagine it either. Let’s see what this new potential client tells us when we present him with the proposal.