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Business

Notional hourly rate

What an hour is worth in the business — not what it costs in wages.

In a family business no wage appears in the books for your own hour. It still has a value: the value the same hour would earn somewhere else.

Without that figure every bit of hand work looks free, and no investment in saving time ever pays on paper. It is the number without which time cannot be valued — and the reason some estates spend years doing something themselves that they are paying dearly for.

Related terms

Contribution margin What is left of a revenue once the variable costs have been taken off. Seasonal worker Somebody who works on the estate only part of the year — at harvest, in the farm shop, at the…
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