On this episode, I begin our discussion on pricing strategies for private investigators. How to price services is an issue every PI I know has had an issue with, including myself. We start by taking a look at a common used method of pricing commodity services, Cost Plus Markup, and lay the groundwork for some more complex strategies coming up in later episodes. 

Direct Cost + Indirect Cost = Cost of Service

Total Revenue - Cost of Service = Gross Profit

Gross Profit/(Revenue x 100) = Gross Margin

Indirect Costs/Gross Margin = Breaking Even

Apply Markups based on profit goals divided by units sold