Cost of Doing Business

Ted_9

wow, I really thought that the list was endless.

Massachusetts

<A HREF="http://www.heatinghelp.com/getListed.cfm?id=373&Step=30">To Learn More About This Professional, Click Here to Visit Their Ad in "Find A Professional"</A>

Clif Heeney_5

Cost of Doing Business

I know that I read a piece on the cost of doing business here on the website. IIRC, it was a letter that could be sent out to someone who was questioning a bid or job. It included about 50 different items that must be covered in the overhead of each and every job.

Is anyone able to direct me to the correct place?

Joe Brix

Is this it?

We're probably not the low bidder

aaron_4

is this it

Not sure if this is it?

http://www.heatinghelp.com/newsletter.cfm?Id=62

Hope this helps, good luck.
Aaron

Clif Heeney_5

Sorry, but NO!

Thanks John for your quick reply. I found this article as well in Hot Tech Topics. What I am looking for was a letter that had point by point the 50 or so points that were included in the overhead of the job.

Clif Heeney_5

Another Great One, But Wrong

Thanks Aaron, but it's still not the one that I am looking for. Let's keep trying. And thanks to all of you for helping me find the correct one!!

Al_19

Will this help?

Date: July 15, 2006 07:10 AM
Author: Jim Pompetti
Subject: cost



What makes up a days pay.


401K's

coffee

health insurance

holiday pay

sick pay

vacation pay

uniforms

A/C maintenance

Building repairs

cleaning service

utilities

rent

furniture

gas or heating oil

landscaping

parts

security systems

license

tools

callbacks

bad debt

cash reserves

certification test

collections

company affairs

dealers meetings

employee testing and training

advertising

Internet access

inventory

inventory shrinkage

invoicing

legal services

liability insurance

management training

mobile phones

office training

pagers

property insurance

subscriptions

tax preparation

technician training

trade association memberships

brochures

charitable contribution

customer satisfaction surveys

door hangers

home and garden shows

newsletters advertising

sales commissions

warranties

website yellow pages

youth sport sponsorships

accounting

computer systems

copiers

fax machines

files and cabinets

networking

0ffice supplies

phone bills

postage

software

stamps and pads

trash and disposal

water bill

call takers

employee incentives

salaries

federal state and local

taxes

Workman's comp

gasoline

ladders

radios

tools

trucks

truck decals

insurance

maintenance

tools

insurance

truck plates

warranty expenses

permits

inventory tax

r and d

Now that I have a clearer picture , I think its time to raise prices.

Clif Heeney_5

You Won!

Hi Al!

You swung from the heels and hit a grand slam home run! This is exactly what I am looking for. I knew that it was here somewhere, just couldn't find it. Thanks for taking your time to help me!!

FWIW, I live in Tallinn, Estonia and this will be helping a friend in Caldwell, Idaho figure out his overhead costs in his landscaping business. He thanks you as well!

heatboy

Great List!

Although, I think I would have coffee in there twice :-)

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Al_19

If you really want to help your friend, start here:

barebonesbiz.com

Clif Heeney_5

Ellen Rohr's Website

Hi Al,

Thanks for the address for Ellen's website. I recommended last night that he order her books before going to bed. He really needs to get his cost of doing per business per hour figured out before the grass is green this year. He did a rough calculation and figured that he actually made about $1.20 per hour for his own time last year.

He realizes that he needs to raise his rates. Hopefully with Ellen's help and the information from this thread he will be beginning the process of figuring out his cost per hour.

Thanks again for your help! Anything else that you would recommend that he read?

tech of the future

about the employee wage part

I think some companies make a very big mistake when figuring what the billable hour should be based on expenses and profit. Of course they take an average of what they would pay a tech and ad taxes and other employer related expenses, but one thing I have found is that when I get a really good tech and in my case that would be someone who goes to replace an supply line on a water closet and show's the customer the value of doing the angle stop and tank rebuild at the same time. I want to make sure of two things, First, I really want to be able to pay my tech a Full week of wages even when it is slow and second, I want to be able to pay him more than enough to keep him happy, so if the average tech in my area should get $30.00 per hour, I'd like to pay him $40.00 per hour. Don't get me wrong, it dos not always work, some guys are just cone heads, but at least i know I have done every thing I can to keep the good ones and that saves me thousands of dollars a year in "Help wanted ads", so when figuring employee part of your billable hour or overhead, don't skimp! You can not run a great company without happy employees! Pay them well and they will go the extra mile! Peace!