It is crucial for a business to understand and know the make-up of its charge-out rates and what it covers.

Management must be knowledgeable on how to build and charge effective and profitable charge out rates.

It is essential that you build your charge out rates to include not only the total costs, but also the profits needed to achieve your objectives of growth and stabitity. The most important thing to remember is that your rates must be a direct reflection of your costs and objectives and not be market driven. You should never be afraid to charge your worth. Most important, don't base your rates on the competition's— when you do base your on theirs, you no longer are running your business, your competition is.