As much as we all proclaim that we are really selling outcomes and results for clients, the reality is that all agencies sell time at the end of the day. How you package it up may be different, but from a cost perspective, it's all about the labor hours that you commit. But how do you correctly calculate your real labor costs? Marcel Petitpas of Parakeeto and Chip Griffin of SAGA break down the simplest way to calculate the effective hourly cost for your team members -- and how to use that to analyze your profitability correctly. Marcel emphasizes the need to focus on accuracy more than precision (and explains the difference). Chip explains how you can gather more detailed information on a periodic basis without overwhelming your team and generating reams of unused data.