profit & overhead

Status
Not open for further replies.
L

la2151

Member
Location
california
P&H

P&H

Guess i should have given more info why I am asking.I did a small project for a customer & add P&H. She turned the bill over to her insurance company as it was result of water damage & had coverage, I have been already paid by the customer.The ins agent called me today to inquire if it was my usual practice to add P&H.He told me he has only seen it done by GC.I just replied it is my usual practice & have never had it questioned before. he said OK.!
Always so good to be able to come here to learn & thanks for all who help.

Lorey B
 
S

satcom

Senior Member
la2151 said:
HI.. Just wondering if any Ec charge profit & overhead to customers & what is usual percent?
Click to expand...

The concept of setting up, and opreating your own business, is to do better then working for wages, and to generate PROFITS that help build long term assets and allow both you and your business to grow, the overhead is a tool that allowes you to operate, maintain and replace your truck, and all the other expenses, pay your day to day operating costs, including your salary. Operating in any other way is self defeating, you put in hours and usually at lower rates, and never build any long term worth.
 
iMuse97

iMuse97

Senior Member
Location
Chicagoland
Too many business owners feel like non-profits nowadays, anyway. Let's all join them--or not.

I do a significant amount of work for friends, and I have become friends with the people I do work for, and they sometimes question why I charge what I do: that's when to tell them you've already figured in the "10% recession discount." (Just make sure you started high enough to begin with.)
 
S

satcom

Senior Member
iMuse97 said:
Too many business owners feel like non-profits nowadays, anyway. Let's all join them--or not.

I do a significant amount of work for friends, and I have become friends with the people I do work for, and they sometimes question why I charge what I do: that's when to tell them you've already figured in the "10% recession discount." (Just make sure you started high enough to begin with.)
Click to expand...

Business profits may be reduced, but it is rare to see a business continue to operate when their overhead and operating expenses are reduced, in the last 2 years we noticed many of the new start ups are gone, and every day we hear of someone going out of business, plenty of auctions for tools and equipment, the last recession we lost 70% of the EC's in the area, the companies that were left, were stronger and most of them have new owners but are still in business today, they were the ones that maintained ad's in the yellow pages and ran their business on a professional level.
 
iMuse97

iMuse97

Senior Member
Location
Chicagoland
satcom said:
Business profits may be reduced, but it is rare to see a business continue to operate when their overhead and operating expenses are reduced, in the last 2 years we noticed many of the new start ups are gone, and every day we hear of someone going out of business, plenty of auctions for tools and equipment, the last recession we lost 70% of the EC's in the area, the companies that were left, were stronger and most of them have new owners but are still in business today, they were the ones that maintained ad's in the yellow pages and ran their business on a professional level.
Click to expand...

From a survivor of the late 70's recession: Right on, dude! :grin: No, I was not an EC at the time: I just survived, as evidenced by the fact that I'm writing this today.
 
S

satcom

Senior Member
iMuse97 said:
From a survivor of the late 70's recession: Right on, dude! :grin: No, I was not an EC at the time: I just survived, as evidenced by the fact that I'm writing this today.
Click to expand...
Back then the electrical work slowed so I took a job cleaning tiolets, and scrubbing floors in a factory, had to feed the family.
 
brian john

brian john

Senior Member
Location
Leesburg, VA
We never show it. I have had government purchasing agents tell me the following, when we have to show P&O on quotes.

We only allow 10 and 10. My answer 1. Not If I am doing the work, 2. Not and stay in business.

Also had one tell me Congress mandated 5 & 10. I called his bluff and he relented.

Had one tell me "I was in business and I only charged 10 and 10." My Answer was Yes and "WAS " is the key word here.

Had an insurance guy tell me no overhead was allowed on labor. I said nice but I have been paid as I work for the customer not the insurance company.

Some people.

Recently we have had a few companies call us before and after jobs requesting a reduction in cost, saying if we plan on doing work for them reductions are expected.

I haven't but would love to ask them to give part of their paycheck back!
 
M

macmikeman

Senior Member
Location
Planet macmikeman
The funniest one is when some GC calls out of the blue wanting me to bid on a job, and then proceeds to ask for a 10% "contractor discount" on my rates. That right there gets a 200% minimum bang up from me.....
 
brian john

brian john

Senior Member
Location
Leesburg, VA
macmikeman said:
The funniest one is when some GC calls out of the blue wanting me to bid on a job, and then proceeds to ask for a 10% "contractor discount" on my rates. That right there gets a 200% minimum bang up from me.....
Click to expand...

I have told this before, we have a customer that always calls and wants a discount after the project is completed, we know this going in and automatically charge 20% more, then we give 5%-10% back he's happy and we're happy.
 
Status
Not open for further replies.
Top