Replies

1. 
   NAGIV | Nov 20, 2008 11:19pm | #1

   Seems fairly accurate compared to my own calculations

   Our burden is just under 50% of wages.  

1. 
   frammer52 | Nov 20, 2008 11:21pm | #2

   I thought it was good and a way for others to figure theirs.

2. 
   yojimbo2 | Nov 30, 2008 07:13am | #3

   Health insurance, paid sick and vacation? What are those things? Never heard of them. Kidding aside, aren't these "perks" usually associated with larger companies, corporations and unions?

   I have never worked on a crew that offered any of these things, and I certainly cannot afford to provide them to my employees. I would imagine in this current economy these "perks" will become harder and harder to find.

   This country has been flooded with cheap labor. I compete directly with crews that don't pay taxes, don't carry insurance, don't pay workmen's comp and so on.

   I noticed that there was no entry for social security, FICA, etc(I may have overlooked this area). I did not find this calculator to be realistic or accurate at all.

1. 
   frammer52 | Nov 30, 2008 06:19pm | #4

   Health insurance, paid sick and vacation?

   If you don't provide, you aren't charging enough.

2. 
   rasconc | Nov 30, 2008 06:45pm | #5

   Look at the advanced settings on lower left.For those who have fought for it Freedom has a flavor the protected will never know.

3. 
   JerraldHayes | Nov 30, 2008 07:37pm | #6

   I have that very same functionality built into The Capacity Based Markup Worksheet (aka PILAO) that I wrote and that we have talked about here before from time to time.

   It's a very minor differentiation to draw between the two but it seems to me that the online calculator lumps Tools Gas and Vehicle costs together (Tools/Gas/Vehicle) where my spreadsheet breaks them out as separate line items (Truck Payments or Depreciation, , and Gas and Oil) to be considered separately as I think they should. Truck Payments or Depreciation is a one time expense that you are spreading out the recovery of over a given time period (per year) while Gas and Oil are ongoing weekly or monthly expenses while the Tool Allowance category could be looked at either way. It could be either a period cost or a more variable ongoing operating expense or mix of the two.

   And not to toot my own horn or pooh pooh the importance of understanding what your true labor cost is but with the other worksheets in the workbook the Capacity Based Markup Worksheet goes beyond just labor burden calculation. It also helps you calculate your Billable & Non-Billable Hours Ratio, Fixed Overhead, and Owners Compensation costs and distribute them through your hourly billing rate.

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1. 
   frammer52 | Nov 30, 2008 07:43pm | #7

   I didn't remember seeing yours, but thought it would maybe help some guys to be refreshed from time to time.

1. 
   JerraldHayes | Nov 30, 2008 08:12pm | #8

   I agree. I think the discussions on costs, pricing and markup that used to very regularly appear here have dwindled to a trickle.In a time where understanding all of that is more important than ever if you make your living in the building and remodeling business I don't really get the dearth of discussion on the topic we now have.

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1. 
   frammer52 | Nov 30, 2008 08:17pm | #9

   I know that I would never have had to go out of business in 1992 if I had these tools available at that time.

   That is not to say they weren't there, I just never found them.  The internet has made it easier to find the help necessary to stay in a profitable business today.

2. 
   cargin | Dec 01, 2008 06:06am | #10

   Jerrald

   We had the election and the trash talking.

   Hard for markup discussion to compare to things like that.

   Maybe nest we can discuss the newest American Idol.

   Rich

1. 
   bstcrpntr | Dec 02, 2008 05:04am | #11

   I find the calculator fairly accurate.  I am glad to have found this site before giong into business for myself.  Was a big help in the planning and understanding stage.October 17th, 2009

   Jeremy and Lisa

   Was there ever any doubt?

2. 
   yojimbo2 | Dec 02, 2008 05:58am | #12

   Can you tell us what you bill out at on an hourly basis. In other words , when you prepare a bid, what are you estimating your hourly labor cost at.Nice spreadsheet.Would you mind terribly showing the other pages as well?Thanks

   Edited 12/1/2008 10:00 pm ET by yojimbo2