ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals

ECN Shout Chat
Top Posters(30 Days)
Admin 16
Recent Posts
Another Forum Update
by Admin. 03/22/17 03:04 PM
Dining room plugs
by watersparkfalls. 03/21/17 10:31 PM
TRUE POWER
by jraef. 03/21/17 09:13 PM
WEG CFW-11 Frequency Inverter
by jraef. 03/21/17 08:50 PM
fuse rejectors
by HotLine1. 03/20/17 08:14 PM
New in the Gallery:
SE cable question
Popular Topics(Views)
231,134 Are you busy
165,891 Re: Forum
160,444 Need opinion
Who's Online Now
1 registered members (mbhydro), 71 guests, and 12 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate This Thread
#159084 - 10/22/06 08:26 PM Recovering Overhead with Labor  
Tiger  Offline
Member
Joined: May 2005
Posts: 706
Crystal Lake, IL USA
I've been using a model that I just read an interesting article about. I allocate all of my overhead and profit to labor alone, rather than labor and material markup. As LK has posted on numerous occasions, if the materials are customer supplied, you lose material markup. If material markup is needed to acheive your profit goals, you won't meet those goals.

Dave


Business, Office, Estimating, Legal:

#159085 - 10/22/06 10:26 PM Re: Recovering Overhead with Labor  
renosteinke  Offline
Cat Servant
Member
Joined: Jan 2005
Posts: 5,316
Blue Collar Country
My own arrangement is rather similar, Tiger.

I think it is important to keep separate "numbers for the customer" from "numbers for yourself."

While there are real costs in maintaining an inventory, (as there are in maintaining equipment, tools, whatever), I don't think it is helpful to present them to the customer as such.


#159086 - 10/22/06 10:37 PM Re: Recovering Overhead with Labor  
Tiger  Offline
Member
Joined: May 2005
Posts: 706
Crystal Lake, IL USA
With homeowners it's much easier to present a price than it is to explain your business. I think explaining all the details of why material markup is needed would be just the incentive for my client to do business with someone else.

When I'm dealing with businesspeople it's different. I don't have to explain it to them, they know it from their own business.

When I do business with other people I don't ask them to sharpen their pencil or drop their price. I ask them to do a good job for me and price it so they can do it again when I need it.

Dave



Member Spotlight
HCE727
HCE727
Delaware County, PA, USA
Posts: 186
Joined: November 2005
Show All Member Profiles 
Featured:

2017 NEC and Related
2017 NEC
Now Available!

Shout Box
Powered by UBB.threads™ PHP Forum Software 7.6.0
Page Time: 0.013s Queries: 14 (0.004s) Memory: 0.7509 MB (Peak: 0.8771 MB) Zlib enabled. Server Time: 2017-03-23 00:26:02 UTC