The Electrical Contractor Network

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

Books, Tools and Test Equipment for Electrical and Construction Trades

Register Now!

Register Now!

We want your input!

Featured:
   

2017 NEC and Related
2017 NEC
Now Available!

   
Recent Posts
Industrail Control Panel bonding per 409.108
by sparkyinak
Today at 06:29 PM
Calling all Non-US members!! (Non-US only)
by aussie240
12/07/16 02:39 AM
Photo Upload Tutorial
by DanK
12/06/16 11:35 PM
Sprinklered equipment 26-008
by bigpapa
12/02/16 04:24 PM
On Delay Relay with Auto Reset
by Potseal
12/01/16 09:59 AM
New in the Gallery:
12.5A through 0.75mm˛ flex (just out of curiosity)
Shout Box

Top Posters (30 Days)
gfretwell 13
HotLine1 10
sparkyinak 9
Texas_Ranger 8
Potseal 6
Who's Online
2 registered (sparkyinak, LongRunner), 90 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Topic Options
Rate This Topic
#159084 - 10/22/06 05:26 PM Recovering Overhead with Labor
Tiger Offline
Member

Registered: 05/04/05
Posts: 714
Loc: 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

Top
Business, Office, Estimating, Legal:
#159085 - 10/22/06 07:26 PM Re: Recovering Overhead with Labor
renosteinke Offline
Cat Servant
Member

Registered: 01/22/05
Posts: 5305
Loc: 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.

Top
#159086 - 10/22/06 07:37 PM Re: Recovering Overhead with Labor
Tiger Offline
Member

Registered: 05/04/05
Posts: 714
Loc: 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

Top



ECN Electrical Forums - sponsored by Electrical Contractor Network - Electrical and Code Related Discussion for Electrical Contractors, Electricians, Inspectors, Instructors, Engineers and other related Professionals