Percentages and quotes help

[theunknowingtarmack]

Let me preface this by saying that while I have a BA in Finance, my math skills are horrible (I only passed my math classes due to the rest of the class bombing all of the tests and the prof curving the grades. I got extremely lucky, but right now, I'm re-thinking just how lucky I am since I am a total moron when it comes to numbers).

To make a long story short, I work at a media company in the EU and we work with influencers to provide them branded integrations on their socials, they give us their rates, and ideally, we quote ABOVE the rates (as I found out my first day), not the exact rates. Then, throw a Spanish subcontractor into the mix that wants 50/50 from the deals, and the main company I work for that always wants a cut (30%, decent-sized).

How would I do this and not look stupid? Let's use an example that I'm struggling to figure out right now (another deal for Spain is on the line). The client's rate is, let's say, 500 EUR for integration on their socials. The Spanish subcontractor wants everything split down the middle, 50/50. The main company I work for would prefer 30% and a decent cut as well. The client needs to get their rate no matter what, while also factoring in the Spanish contractor and the main company. What rate should I quote to the company?

I have previously made the mistake of quoting the actual rate that the client/subcontractor had given me (e.g. - if the client says 500 EUR, then I quote 500 EUR to the company, and then when it comes time to signing... I find out there's all these % and cuts. Boy that was a confusing day. This is one part of my job that I struggle with, the rest is A-Okay.)

So, for this case... would it be fair enough to quote, say 700? That way the client gets his share (I think?), then the Spanish subcontractor gets his 50/50 (I think?), and the main company gets its share (again, I think?). Or am I missing something? Thanks, folks.

 

[lev888]

Don't have a finance/business degree, so it's not clear what exactly is going on here. Can you clarify?

 

[JeffM]

First, if you are going to work in finance. you better start repairing your math skills. It’s all numbers.

Second, math starts with being exact about what you are trying to do. “The influencers give us their rates.” What does that mean. Is the rate something your firm pays to the “influencer” and that your firm in turn charges with a mark-up to others?

 

[HallsofIvy]

Let me preface this by saying that while I have a BA in Finance, my math skills are horrible (I only passed my math classes due to the rest of the class bombing all of the tests and the prof curving the grades. I got extremely lucky, but right now, I'm re-thinking just how lucky I am since I am a total moron when it comes to numbers).

So a class of incompetents would get the same grade as a class of geniuses? That is ridiculous! The teacher is incompetent!

To make a long story short, I work at a media company in the EU and we work with influencers to provide them branded integrations on their socials, they give us their rates, and ideally, we quote ABOVE the rates (as I found out my first day), not the exact rates. Then, throw a Spanish subcontractor into the mix that wants 50/50 from the deals, and the main company I work for that always wants a cut (30%, decent-sized).

How would I do this and not look stupid? Let's use an example that I'm struggling to figure out right now (another deal for Spain is on the line). The client's rate is, let's say, 500 EUR for integration on their socials. The Spanish subcontractor wants everything split down the middle, 50/50. The main company I work for would prefer 30% and a decent cut as well. The client needs to get their rate no matter what, while also factoring in the Spanish contractor and the main company. What rate should I quote to the company?

I have previously made the mistake of quoting the actual rate that the client/subcontractor had given me (e.g. - if the client says 500 EUR, then I quote 500 EUR to the company, and then when it comes time to signing... I find out there's all these % and cuts. Boy that was a confusing day. This is one part of my job that I struggle with, the rest is A-Okay.)

So, for this case... would it be fair enough to quote, say 700? That way the client gets his share (I think?), then the Spanish subcontractor gets his 50/50 (I think?), and the main company gets its share (again, I think?). Or am I missing something? Thanks, folks.

 

[theunknowingtarmack]

First, if you are going to work in finance. you better start repairing your math skills. It’s all numbers.

Second, math starts with being exact about what you are trying to do. “The influencers give us their rates.” What does that mean. Is the rate something your firm pays to the “influencer” and that your firm in turn charges with a mark-up to others?

Yeah... I'm trying to (math is difficult), every weekend I try to learn stuff like fractions, etc. at Khan Academy.

Let me explain how it works. Let's say Samsung (I don't want to name the actual brand) wants to promote their new phones or whatever and wants to do a campaign with a Spanish influencer (YouTube ads, for example). They come to me (or the other way around) and say... (Using this in convo format to make it easier - professionally written when in emails and over the phone):

Samsung: "Listen, we like this Spanish guy. We want to expand into the Spanish market. How much are his rates?"
Me: "Alright, great to hear! I'll communicate with [Insert Spanish Guy's Name] and will get back to you within a few days with more info."
*Goes to the Spanish subcontractor, ask him for the influencer rate, then I have to figure out the calculations. The Spanish subcontractor just gives the rates the influencer has to get to be interested in the promotion. Let's say, for this guy, the influencer will only do 2,500 EUR or else not interested.*

The 2,500 EUR example does not include management (our company's fee) nor include's the Spanish subcontractor's fee. This is where I get stuck. The Spanish subcontractor (the main company I work for isn't too happy about 50/50 since we do most of the work and provide the platform) want 50/50 of whatever we get (but he does not and should not know the full amount that Samsung gives, or else he'll be wanting 90/10 and 100/0 - which makes it worthless for us to pursue, according to management). Management basically told me is that try to factor the Spanish subcontractor less in the deals. Just focus on the company and the influencer rate.

Basically: The brand (Samsung, let's say) pays us (and we pay the influencer their rates) for promotions. Basically sponsored campaigns. 2,500 EUR is what the influencer needs to get for this example. I know I need to quote above this rate, but by how much? To factor in that the 30% (20% is the lowest that is worth it for the company) management fee and the 50/50 split the Spanish subcontractor wants. That's my struggle.

Thank you very much.

 

[theunknowingtarmack]

Don't have a finance/business degree, so it's not clear what exactly is going on here. Can you clarify?

Yeah, I clarified in my post below.

Yeah... I'm trying to (math is difficult), every weekend I try to learn stuff like fractions, etc. at Khan Academy.

Let me explain how it works. Let's say Samsung (I don't want to name the actual brand) wants to promote their new phones or whatever and wants to do a campaign with a Spanish influencer (YouTube ads, for example). They come to me (or the other way around) and say... (Using this in convo format to make it easier - professionally written when in emails and over the phone):

Samsung: "Listen, we like this Spanish guy. We want to expand into the Spanish market. How much are his rates?"
Me: "Alright, great to hear! I'll communicate with [Insert Spanish Guy's Name] and will get back to you within a few days with more info."
*Goes to the Spanish subcontractor, ask him for the influencer rate, then I have to figure out the calculations. The Spanish subcontractor just gives the rates the influencer has to get to be interested in the promotion. Let's say, for this guy, the influencer will only do 2,500 EUR or else not interested.*

The 2,500 EUR example does not include management (our company's fee) nor include's the Spanish subcontractor's fee. This is where I get stuck. The Spanish subcontractor (the main company I work for isn't too happy about 50/50 since we do most of the work and provide the platform) want 50/50 of whatever we get (but he does not and should not know the full amount that Samsung gives, or else he'll be wanting 90/10 and 100/0 - which makes it worthless for us to pursue, according to management). Management basically told me is that try to factor the Spanish subcontractor less in the deals. Just focus on the company and the influencer rate.

Basically, 2,500 EUR is what the influencer needs to get for this example. I know I need to quote above this rate, but by how much? To factor in that the 30% (20% is the lowest that is worth it for the company) management fee and the 50/50 split the Spanish subcontractor wants. That's my struggle.

Thank you very much.

 

[theunknowingtarmack]

So a class of incompetents would get the same grade as a class of geniuses? That is ridiculous! The teacher is incompetent!

Well, if I remember correctly, the professor said the average was 50%-60% on all of the tests. I remember only 1 guy I sat next to that got 90% and 100% on each test, but the professor was worried (I had the same profs for the majority of my math classes) about the average for the class and just said "*sigh* I'll curve it then." when the class asked about what happened and what the final grade will look like.

 

[lev888]

Yeah... I'm trying to (math is difficult), every weekend I try to learn stuff like fractions, etc. at Khan Academy.

Let me explain how it works. Let's say Samsung (I don't want to name the actual brand) wants to promote their new phones or whatever and wants to do a campaign with a Spanish influencer (YouTube ads, for example). They come to me (or the other way around) and say... (Using this in convo format to make it easier - professionally written when in emails and over the phone):

Samsung: "Listen, we like this Spanish guy. We want to expand into the Spanish market. How much are his rates?"
Me: "Alright, great to hear! I'll communicate with [Insert Spanish Guy's Name] and will get back to you within a few days with more info."
*Goes to the Spanish subcontractor, ask him for the influencer rate, then I have to figure out the calculations. The Spanish subcontractor just gives the rates the influencer has to get to be interested in the promotion. Let's say, for this guy, the influencer will only do 2,500 EUR or else not interested.*

The 2,500 EUR example does not include management (our company's fee) nor include's the Spanish subcontractor's fee. This is where I get stuck. The Spanish subcontractor (the main company I work for isn't too happy about 50/50 since we do most of the work and provide the platform) want 50/50 of whatever we get (but he does not and should not know the full amount that Samsung gives, or else he'll be wanting 90/10 and 100/0 - which makes it worthless for us to pursue, according to management). Management basically told me is that try to factor the Spanish subcontractor less in the deals. Just focus on the company and the influencer rate.

Basically: The brand (Samsung, let's say) pays us (and we pay the influencer their rates) for promotions. Basically sponsored campaigns. 2,500 EUR is what the influencer needs to get for this example. I know I need to quote above this rate, but by how much? To factor in that the 30% (20% is the lowest that is worth it for the company) management fee and the 50/50 split the Spanish subcontractor wants. That's my struggle.

Thank you very much.

Let's see if I understand this.
Samsung pays the main company X.
Main company takes 30% fee. What remains is 0.7X.
The subcontractor and the influencer divide what remains 50/50: each gets 0.35X.
If each gets 2,500, then: 0.35X = 2,500, X = 2,500/0.35 = 7,143.
Makes sense?

 

[theunknowingtarmack]

Let's see if I understand this.
Samsung pays the main company X.
Main company takes 30% fee. What remains is 0.7X.
The subcontractor and the influencer divide what remains 50/50: each gets 0.35X.
If each gets 2,500, then: 0.35X = 2,500, X = 2,500/0.35 = 7,143.
Makes sense?

Thank you so much. This is starting to make more sense.

And now that you provided the math, I've screenshotted it and saved it for the future. I honestly wish they taught this type of stuff in school, I'm learning a lot more math with this job than ever before (and it's honestly interesting).

 

[mmm4444bot]

I honestly wish they taught this type of stuff in school

The grade school and junior high that I attended did.

 

[theunknowingtarmack]

The grade school and junior high that I attended did.

Yeah, I probably learned it then, just didn't really understand it -- something about splits, etc. (if you want to put me in the hot seat, ask me to tell the time without looking at my phone haha). But it's fine, I never told anyone (even at my work, I told them this) that I can do the math perfectly -- my math skills suck, so I'm learning as I go. My girlfriend always says "Just please, please don't work at a bank if this is how much you gave the waiter as a tip.", we always have a good laugh haha (not afraid to admit math is my ultimate weakness).