I'm curious if any of you calculate 'loaded' labor costs for use in ROI calculations, and what multiplier you use vs the salary.
The 'loaded labor' cost attempts to reflect the true cost of a person to the company (not just salary, but benefits, overheads, etc as well).
i.e. Let's say you had a labor-saving product that allowed your customer to not hire 1 minimum wage worker. Therefore, you could estimate the value that of your product at $7.25 (Federal min wage in US) x 40 x 52 = $15,353 per year. But that's not the true value saved, since the true cost of employing that employee is actually much greater (due to the fact that the employer pays benefits, holiday pay, extra taxes, provides an office and computer, etc).
I've used both 1.5x and 2x as multipliers before in previous start-ups, but various industries have different multipliers - I'm curious if there are any rules of thumb out there.
By the way - I'd hesitate to make ROI calculations like this the only focal point of your sales efforts - you need to wrap these numbers in narrative and value. Stuff like this works best, in my experience, as supporting evidence to the overall narrative. Resist the engineer's impulse to make it all about spreadsheets and numbers!