BlueDog Group FAQ's

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Q.

Is there a percentage that we could normally charge for designs for easy math? I want to be able to use the BlueDog Design Services as our engineering team, but also I want to be able to talk to customers and be able to ask them upfront questions, with us still being able to make margin on the design work.

A.

Obviously, the design/engineering cost varies as a % of a project just as the install cost does…lots of variables including cost of equipment (OFE TVs vs. new, Crestron vs. C4, etc.), scope (prewire only vs. full system) and level of engineering required (hang-and-bang Sonos vs. fully integrated LV system).   

  

That said, historically we recommended 5% but we’re seeing that come down.  As we’ve improved our internal efficiencies and the scope of projects has trended towards simpler design, we believe 3.5% is a figure that when applied across all projects will cover our cost to be your design/engineering department (proposals and required drawings – change orders billed hourly and we presume passed through to client).   

  

In round numbers, then, $35K cost for every $1M of sales…far less in our estimation than attempting to build a fully functional design team in-house.  Mark that up to the margin you wish to see…20 points to 40 points being typical.   

  

There are a number of ways to “bake this in” to your designs when we do them in D-Tools, such that it can be seen (if you want to feature the fact you HAVE and engineering team) or less obvious if that’s preferred (we recommend including in labor cost factors, along w/administrative overhead and project management). 

For more info or questions, please reach out to us!

FAQCurt Hayes