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Glad Summary: SOW/Agency Fee

Vanessa Booth, Bria Wallen,

Joyceline Onyebuchi &

Leo Kan

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Overview

  • Purpose
  • Agency fee/client budget
  • Salary related costs
  • Contribution to overhead
  • EBIT
  • PBT
  • Cost per FTE
  • Revenue per head
  • Total hours/FTE total
  • Conclusion

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Purpose

To come up with an agency’s staff schedule based on the scale and complexities of our client’s (Glad) annual scope of work, while also sticking to the client’s budget and hiring the correct amount of staff to make the company work.

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Agency Fee/Client Budget

  • The Client's budget was $1,100,000
  • We used about $1,071,569.71
    • 97.42% of the budget
    • We made sure to stay with in the 95%-100% of the client’s budget.

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Salary Related Costs

  • Total compensation was $429,620.94
  • Salary related costs was 39.06%
    • Keeping it below the 45% target.

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Contribution to Overhead

  • Contribution to overhead was $585,879.06
  • Which is 52.99%
    • Above the minimum 52%

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EBIT

  • EBIT was $156,240.46
  • Which equals to 14.02%
    • Above the 13.50% minimum.

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PBT

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  • Profit before tax was at $156,240.46
  • Which equals 14.02%
    • This is above the 13% minimum.

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Cost Per FTE

  • The cost per FTE was $143,417.62
  • Which is within the 143K-150K range.

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Revenue Per Head

  • The Revenue Per Head equaled $166,807.08
    • This amount was between the 164K-170K range.

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Total Hours/FTE Total

  • Our FTE was 6.59
    • This is within the range of time needed.
  • Agency Mgmt. Hours: 897
  • Account. Mgmt. Hours: 3,962
  • Account Planning Hours: 885
  • Creative Hours: 4,391
  • Production Hours: 1,645
  • Total Hours: 11,870

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Conclusion

Our agency was able to complete the task at hand for Glad while staying within their budget and finding the correct solutions for what the company needs. We found a solution for each category and were able to stay above the required amounts.