Calculating Profit & Overhead | Electrical Estimator | On Time Estimating, Inc. | United States

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Calculating Profit & Overhead

September 7, 2016

 

When finalizing your estimate, your Profit and Overhead percentages are a critical line item to determine what your company needs to make in order to make a profit and grow. There are many factors that go into these numbers that need to be considered, and every company is a little different. Some of these factors are:
 

  • Worker Fractions

  • Size of your company, both in and out of the field. This is considered your “Productive” and “Non-Productive” Labor

  • Your growth ratios, that were considered in your business plan, or just your own personal goals.

  • Geographical location of job’s

  • Types of job

  • Your Competition

  • Etc…

 
At On Time Estimating we have over 30 years’ experience in calculating these factors to determine what percentages will work for you and your company on a job by job basis, as these will change as the line items listed above do.
 
If you have not calculated these percentages yet, or are just looking for some fine tuning, contact us today to see how we can implement our proprietary formulas, that we will fit specifically for your company, to deliver to you more winning and profitable bids!

 

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