Personal Introduction
From 2008 to 2014, I worked with Prakash Parab in Waste Management at Dulsco: first as a customer, later as a colleague in the role of Commercial Director, and subsequently as a senior-level freelance consultant. The article series introduced here covers the staffing business. Chapter 11 is devoted to the cost basis of reliable quoted prices.
Summary of the Original
Prakash Parab recommends determining costs based on specific activities. In staffing, these include, for example, personnel selection, deployment preparation, ongoing personnel administration, and site support. Company-wide averages can obscure differences between individual processes.
Special attention should be paid to difficult-to-detect costs: repeated deployment preparation following early staff turnover, unproductive waiting times, error corrections, and additional management work.
According to Parab's recommendation, the calculation basis should be reviewed jointly by commercial and operational management on an annual basis. Significant cost changes must also trigger an interim reassessment. Internal site comparisons help identify opportunities for improvement. Finally, quotes should be based on current costs.
Jan Wilhelm's Own Practical Assessment
For service companies, this means: First, break down a service into its actual work steps.
A fictitious example: A monthly administration fee covers regular processing. However, missing documents regularly lead to follow-up questions, resubmissions, and corrections. This additional work remains invisible in a flat-rate time assumption.
A practical starting point is time-limited effort tracking for selected processes. In doing so, separate regular processing, clarification issues, and rework. Then document what assumptions underlie your calculation and when they will be reviewed.
This creates a reliable basis for process improvements and pricing discussions. ELB Services supports you in linking activities, costs, and responsibilities in a transparent manner.
Original article by Prakash Parab:
Costing: The Science Beneath the Rate Card
Website and series overview:
www.prakashparab.com
Original read on October 26, 2026. Independent editorial summary and recommendation by Jan Wilhelm; no authorized translation or joint publication.