The New Normal
in Office Management
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HOW MUCH DOES IT COST?

THE SHORT ANSWER: 

There is no "one size fits all" because the needs of every business is different.  Some clients simply want us to answer their phones and handle simple correspondence while others want us to get deeply involved with scheduling, project management, marketing assistance, bookkeeping, etc.  Some have minimal needs for only a few hours a week while others are very extensive; utilizing the equivalent of one or more full-time staff at various skill levels.  Even clients within the same occupational category often have very different needs.

What can be shared is that our minimum fee is $200 per month, and that most of our small business clients fall in the $300-$800 per month category.  Give us a call to discuss your needs and we can provide you with an estimate.  We'll even let you try it out for a couple of weeks at no cost to see if it's a good fit.  Our primary interest is in developing a solid, long-term relationship so we need to make certain that clients are a good fit for our services.


THE LONG ANSWER: 

1)  On-site employees are expensive.

2)  Because of the often varied and unique needs of small business owners, we have found that a flat hourly rate just doesn't make sense.  For instance, there is a difference in the cost of someone doing simple data entry compared to someone implementing marketing plans, creating Power Point presentations and complex "what-if" spreadsheets.  As such, we create a value package that is unique for each client utilizing a matrix of of information such as call volume and handling time, admin time, required skill sets, etc.

3) Most clients are given the first two weeks of service at no cost or obligation, which accomplishes several goals:  Most importantly, it gives the client the ability to try out the service to see if it fits.  It also enables the client to train his/her new team at no cost.  Finally, it enables us to provide a reasonable cost estimate based on the evaluation of actual usage, should they choose to move forward.

4)  All clients, regardless of size, receive 40 hour per week coverage and availability.  In other words, you'll have a team of 3-5 people available whenever you need them, even if your actual usage is only a couple of hours per week.  And you'll only pay for the services you need.

5)  All contracts are month-to-month with no long-term commitment.  This means that your usage of Daybreak services can vary with the ups and downs of your business.

6)  THE MINIMUM FEE:  We do require a minimum usage fee of $50 per week.  However, this can be waived during slow seasons for seasonal clients.  For instance, a landscaper may not need much service during the winter months, so in that instance we would simply waive the minimum fee until their busy season was back in play.  This is arranged on a case-by-case basis.


PROBLEMS WITH HIDDEN COSTS INVOLVED IN HIRING EMPLOYEES:  There are many hidden costs involved in hiring employees — whether full-time or part-time. In addition to the actual hourly rate, employers also pay for the following:

  • Assorted state and federal payroll taxes,
  • Health insurance
  • Workers' Compensation
  • Unemployment taxes
  • Benefit time (sick time, vacations, personal time, etc).
  • Cost to replace an absent employee
  • Cost of payroll/paycheck services
  • Etc.

ANOTHER PROBLEM - NON-PRODUCTIVE TIME:  A 2006 study by AOL and Salary.com indicates "the average worker admits to squandering 1.86 hours per 8-hour workday, not including lunch and scheduled break-time..." (Click here to view the report).  When adding the two paid 15 minute coffee breaks mandated by the government, employers pay approximately 2.4 hours of non-productive time per 8 hour shift which is about 30% of scheduled work time.  (See below for examples of how employees waste time)

SO WHAT DOES AN EMPLOYEE REALLY COST?   A general rule to determine the actual cost of an employee is to add about 38% to the hourly rate.  In other words, an employee earning $15.00/hr actually costs the employer a little over $20.00/hr - or about $3400 per month!!*  And that's not including the 2.4 hours of non-productive time each day and the myriad risks and hassles associated with being an employer!

THE SOLUTION:  Our pricing is generally about 30-35% less than the cost of hiring in-house staff.

  • In the above example, Daybreak's monthly fee to accomplish the same tasks as a typical 40 hour per week clerical employee would be about $2400 per month - resulting in a savings of about $1000 per month or $14,400 per year!!**
     
  • If your salary rate is higher than then the $15.00/hr example above, then your savings will increase even more.
     
  • Comparable savings apply to part-time employee replacement.

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HOW DO EMPLOYEES WASTE PRODUCTIVE TIME?  Activities such as personal internet use, socializing with co-workers, running personal errands while off premise, "spacing out", personal phone calls, arriving late/leaving early, and even applying for other jobs.  Staring blankly at the computer screen was reportedly also quite popular!*** 

Notes:
*  Fees quoted for in-house staff are typical for New York State - they may vary somewhat in other states.
** These Daybreak fees are typical, but will vary depending on the level of services requested and geographic areas. 
***  Source:  AOL/Salary.com study of 2006
- All monthly Salary quotes are based on an average of 4.3 weeks per month


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(We are NOT associated with Daybreak Staffing, Inc. of New York, NY)