Don't worry about the prime's profit margin
This negotiation went very wrong... A bunch of people ask me what they think they should charge for a billable rate if they go 1099. Their thought process is usually "Well I make $100,000 and it probably costs my company 30% more in benefits so that's $130,000, and they're probably making 20% profit so that means they bill out $162,500/year which comes out to a billable rate of $87/hour if there are 1860 billable hours per year. This means I should charge them $80/hour so they make a small...