29th August 2004, 10:01 PM
While I disagree with virtually all the VOR says, I think he may have stumbled on a key problem. (In my defence I would say I have been costing archaeological projects for 17 years and I have seen quotes from about 30-40 units. I run my own business have employed staff etc. I know exactly how much such things cost (I should be doing my VAT return).
I would suggest that if you have to convince your bank manager as to the fact that your business is solvent than basically it is not. The banks are in a good position to judge if a business is profitable. Similarly cash flow is vitally important and many businesses fail because of it, therefore it simply has to be managed.
It you are borrowing large amounts of money the people who make the money are the banks, even with low interest, it is not you. Is the lack of a proper capital base for most archaeological businesses the reason that generally there is low profit for them ? (this is usually the case in business) ? and thus why diggers are paid badly.
Similarly are the businesses having a staff level to cope with peaks of demand rather than means or minimums. The figures I used were for a digger being charged out for 44 weeks which takes holiday, sick and idle time into account.
The ?14k a year I quote would cover all my own overheads including transport, stationery, equipment, my ?600 a year phone bill and even my hotel bills plus all the things consultants have to have like suits (a good suit costs 500 quid you know and the cost of having short smart hair mounts up to ?180 a year that?s 17p an hour of my charge rate as daft as it sounds, my new computer in contrast costs 12p an hour). It would also cover the rent etc on an office the same size as the one I have at home. Similarly paying the wages as an admin task is not worth mentioning. This costs about ?3 per month plus ?12 for all the tax statements etc (+45p in bank charges) that is 20p per day.
Voice of reason please therefore bore me to death ? what are the costs that are so great that profits cannot be made and the diggers paid well. I am far from convinced you or David are correct. Please do not include things that the client is charged for, and state where hidden profit is made such as on transport, uplift on sub-contractors or materials. Only include things that are paid for from the diggers charge out rate.
Peter Wardle
I would suggest that if you have to convince your bank manager as to the fact that your business is solvent than basically it is not. The banks are in a good position to judge if a business is profitable. Similarly cash flow is vitally important and many businesses fail because of it, therefore it simply has to be managed.
It you are borrowing large amounts of money the people who make the money are the banks, even with low interest, it is not you. Is the lack of a proper capital base for most archaeological businesses the reason that generally there is low profit for them ? (this is usually the case in business) ? and thus why diggers are paid badly.
Similarly are the businesses having a staff level to cope with peaks of demand rather than means or minimums. The figures I used were for a digger being charged out for 44 weeks which takes holiday, sick and idle time into account.
The ?14k a year I quote would cover all my own overheads including transport, stationery, equipment, my ?600 a year phone bill and even my hotel bills plus all the things consultants have to have like suits (a good suit costs 500 quid you know and the cost of having short smart hair mounts up to ?180 a year that?s 17p an hour of my charge rate as daft as it sounds, my new computer in contrast costs 12p an hour). It would also cover the rent etc on an office the same size as the one I have at home. Similarly paying the wages as an admin task is not worth mentioning. This costs about ?3 per month plus ?12 for all the tax statements etc (+45p in bank charges) that is 20p per day.
Voice of reason please therefore bore me to death ? what are the costs that are so great that profits cannot be made and the diggers paid well. I am far from convinced you or David are correct. Please do not include things that the client is charged for, and state where hidden profit is made such as on transport, uplift on sub-contractors or materials. Only include things that are paid for from the diggers charge out rate.
Peter Wardle