I use numbers cruncher for this. Its not an easy calculation that you can find on a web site. The short ones will get you close though. Numbers cruncher cost me $300 I think, which in turn was figured into our overhead.
Re: Overhead Per Hour#157945 02/27/0608:13 PM02/27/0608:13 PM
It sounds like you need to create your budget for the year. I went back over the last few years year end statement to get the expence totals. Then I figured the average change (mostly increase). I multiplied that change by last years number. Then I adjusted for expences that are no longer. I adjusted for expences that I plan to spend much more than the past. Added them up plus my income & co. proffit. I added 10% of my material cost to cover waist and unbilled. I had my number. Devided by 12 months, 52 weeks, then the week by 5 days. Now I know how much I need per year, month, and day.
I devided my day OH by 4,6, & 8. Now I use those numbers for bidding the job depending on the efficency I estimate.
For an example I will use $800 per day OH with 2 workers.
If it's a project we are there a number of days all day I will use my 8 hour number which works out to $50/hr each person.
A 6 hour job I will try to get $75 each/hr. With drive time and haveing to get the job done that day normally kills the day.
A 1/2 day job with no other work I need $100/hr each.
In the end I still need the $800 per day minimum.
Note: I'm strugeling like many others to make a living so take it at your own risk.
Re: Overhead Per Hour#157946 03/01/0607:33 AM03/01/0607:33 AM
That's a creative solution to the problem Tom. I've always thought it would be great to get $10,000 per hour & just work a few hours a year.
I've always thought that it would be great to have 4 or 5 techs with a part-timer. You keep the techs working full-time and the part-timer's schedule fluctuates with the extra. It gets slow & the part-timer stays home. It gets busy & the part-timer works overtime.
Unfortunately, I think the reality is that when it gets slow you have trouble making payroll & you're tempted to low-bid to keep the techs busy, which creates a downward spiral.
I have my budget figured very well, and the business is growing steadily, so I guess I'll relax about the invoiced hours. I'm having a super first quarter & if it keeps up this way the invoiced hours will be over 1500 hours.