ECN Electrical Forum - Discussion Forums for Electricians, Inspectors and Related Professionals
ECN Shout Chat
Shout Box
Recent Posts
Extension cords
by Texas_Ranger. 09/25/18 04:37 AM
220/230/240V 60Hz Systems
by gfretwell. 09/23/18 02:50 PM
Inspection camera help
by petey_c. 09/22/18 07:52 AM
Motion detectors and dimmers
by gfretwell. 09/20/18 04:02 PM
Acronis Backup 2017
by gfretwell. 09/16/18 12:46 AM
New in the Gallery:
Plug terminals
Housebilding DIY wiring
Who's Online Now
0 registered members (), 25 guests, and 18 spiders.
Key: Admin, Global Mod, Mod
Previous Thread
Next Thread
Print Thread
Rate Thread
Recovering Overhead with Labor #159084
10/22/06 08:26 PM
10/22/06 08:26 PM
T
Tiger  Offline OP
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:
Re: Recovering Overhead with Labor #159085
10/22/06 10:26 PM
10/22/06 10:26 PM
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.

Re: Recovering Overhead with Labor #159086
10/22/06 10:37 PM
10/22/06 10:37 PM
T
Tiger  Offline OP
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


Featured:

2017 Master Electrician Exam Preparation Combos
2017 NEC Electrician
Exam Prep Combos:
Master / Journeyman

 

Member Spotlight
Tom
Tom
Shinnston, WV USA
Posts: 1,044
Joined: January 2001
Show All Member Profiles 
Top Posters(30 Days)
Admin 13
Popular Topics(Views)
249,451 Are you busy
187,369 Re: Forum
176,708 Need opinion
Powered by UBB.threads™ PHP Forum Software 7.6.1
(Release build 20180101)
Page Time: 0.022s Queries: 14 (0.005s) Memory: 0.9527 MB (Peak: 1.0774 MB) Zlib enabled. Server Time: 2018-09-25 11:38:09 UTC