Overhead Expenses...

Metrojoebarbs

I know most all of us incur the basic overhead expenses each month/year. I am curious to see how much they differentiate from one contractor to the next and how they have changed over the years. If anybody is interested in sharing those expenses feel free. Small business, big business it's all good information to me. Start with the basics...

I'm sure the 21st century brings to view new some variables we never thought about back in the day. I remember using CB radios in our trucks

1. Rent
2. Electric
3. Internet
4. Advertising
5. Office materials
6. etc...

mahlere

as gross numbers, they are all irrelevant to anyone else. it's apples to oranges. now, if you want to compare OH, do it on the basis of per man hour...that's relevant.

Metrojoebarbs

I didn't ask for numbers...I know my overhead

My thread was intended for fun.

mahlere

oh....in that case we pay those items too...

RizzoMaryland

My entire overhead is less than $20/man hour.

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mahlere

i guess health benefits are out...taxes out too?

Grumpy

I don't do over head by man hours, I do it by crew days... except for service calls which have a completely different set of rules.

The above poster said his total over head is less than $20 per man hour but I figure JUST my labor burdens to be $20 per man hour if the man is paid $20 per hour.

Just to give you an idea, my total expenses for October 2007 were: $7,315 (this doesn't include labor or materials). Add in mine and my production manager's salary and that jumps. Our total October 2006 expenses was $6,616.

By the way, our October 2007 numbers would have been $4,000+ higher except we got an insurance rebate, bringing the TRUE October 2007 number to $11,747.

For comparison purposes our year to date sales for 2006 vs 2007 has gone up about 50%.

MattCoops

Does Xbox360 games count as overhead?

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Bob Kovacs

Only if you play them while you're supposed to be working

MattCoops

All the time.

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Matt with Cupan Custom Tile & Paint of Lowell, Massachusetts
Design and installation of ceramic tile and natural stone for floor, wall, and countertops
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L. B. Condulet

Labor burden is not factored into overhead.

send_it_all

Correct, it is a direct cost.

dayspring

Would everyone agree that overhead is pretty much everything it cost one to be in and do business minus labor, material and profit or am I missing something

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Vinny

Yes, I certainly agree with that, to include sales cost also i.e. sales commision and related expenses.

For the record my overhead divided hourly per man is about $60 per hour. If I add the desired profit I'd like at the end of the year its more like $75.00 per man per hour.

F&^%*$# iron is expensive.

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