Hi,
I am looking into setting up a franchise. I am confused on a few issues.
Everything I read or hear tells you to add the cost of overhead to a bid. How do you determine what that is?
If you get 50 jobs a year are you trying to spread it out evenly?
Esitmating is a tricky business with pitfalls around every corner.
Do you always figure up the exact amount of materials, travel, overhead, labor etc. or is it common to just make a hypothesis?
Set prices...is it feasible to preset the cost of a 200A service or replacing a panel etc?
A lot of times I already know what is involved in doing most jobs. I know what it takes in material and I usually know what kind of labor it will take. I always add a multiplier of at least 1.0 for degree of difficulty.
I have found that simply calculating the material and labor etc and adding 10% is not near enough profit. I hear that some EC are working within that margin.
I am now charging $1800 for a 200A service where I used to get $1200. Some of my jobs the profit is 200% or more.
I just think that there is a good formula out there and I dont want to create a new one but I do not want to leave money on the table.
I am talking mostly about residential work.
Thanks for any comments.
-regards
Greg
