Overhead Percentage check
- Thread starter robwire
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robwire said:
I am not sure what you are looking for, a percentage of what? are you looking for fixed overhead, operating expenses, how many employees, how many trucks, do you have extensive equipment needs, do you have large, or small asset expenses, every contractor will have different overhead and operating costs, a percent figure would not make much sense.
Do you have a break even cost, brfore profit figured?
One of the reasons you can't figure a percent is, Comapany A may have an $800 min insurance policy that may allow them to operate, but give them little or no coverages, where as Company B may be paying $3 to 5K for the proper coverages, you just can't compare them as equals.
Company A has a beater truck.
Company B has a leased truck with all it's expenses.
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What percentage of your gross sales is your overhead? like all the estimating classes and books tell you?
Figure out your overhead by taking your overhead,take your gross sales and do the math? I took an estimating class a while back and i was just wondering if my overhead percentage is high or not.
If you don't want to answer ,Don't
Can't anybody just ask a simple question and get a simple answer?
What percentage of your gross sales is your overhead? like all the estimating classes and books tell you?
Figure out your overhead by taking your overhead,take your gross sales and do the math? I took an estimating class a while back and i was just wondering if my overhead percentage is high or not.
If you don't want to answer ,Don't
Can't anybody just ask a simple question and get a simple answer?
robwire said:
sure...now please ask a simple question...
in regards to your question above..how big of a shop are you? 1 man? do you count your salary as OH or profit?
do you do resi service? commercial installations? resi installations? it makes a big difference.
do you have employees? on the books? min wage or prevailing wage? benefits?
all these things come into play.
not really trying to be a dick, just not as simple of a question as you seem to believe...
robwire said:
It isn't a simple question...therefore no simple answer.
Compare any 2 contractors and their OH will vary just as their gross varies. To determine a set percentage is futile. You can say: I like my OH to be limited to x% of the gross ...but the reality is: It ain't gonna happen.
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