[George Z]

Originally Posted by donb1959

George,
But you obviously saw something wrong with the method, or you would not have said so. I am not above gaining wisdom whenever/wherever I can. When I asked what it is you see wrong with my method, I would really like to know. Even if this has been working well for me, maybe there's something I can learn here.

Don,
What is $200.00 per day?
Is it what wages cost you per day
or what the customer pays for a day's work.

Maybe this is a better question:
What percentage is your direct job cost (materials included)?

[donb1959]

Originally Posted by George Z

Don,
What is $200.00 per day?
Is it what wages cost you per day
or what the customer pays for a day's work.

Maybe this is a better question:
What percentage is your direct job cost (materials included)?

George,
The $200.00 per day is if I were working by myself, lets go with the 500.00 per day figure as I have two employees. This is the breakdown:

My salary and my two guys salary equals 7,388.00 monthly. My operating expenses (overhead) advertising, ins, gas, phone,etc.. equal 2156.00 monthly. We work 5 day weeks. 7,388.00 plus 2156.00=9,544.00 divided by 20 working day=477.72 per day rate. Now what I do is charge $500.00 per day on my estimates, I then tack on materials at a small markup, and add 15% profit. This is how I arrive at my estimate for the job.

If you see something terribly askew with these numbers, or methodology, don't hesitate to say so.

[George Z]

Originally Posted by donb1959

George,
The $200.00 per day is if I were working by myself, lets go with the 500.00 per day figure as I have two employees. This is the breakdown:

My salary and my two guys salary equals 7,388.00 monthly. My operating expenses (overhead) advertising, ins, gas, phone,etc.. equal 2156.00 monthly. We work 5 day weeks. 7,388.00 plus 2156.00=9,544.00 divided by 20 working day=477.72 per day rate. Now what I do is charge $500.00 per day on my estimates, I then tack on materials at a small markup, and add 15% profit. This is how I arrive at my estimate for the job.

If you see something terribly askew with these numbers, or methodology, don't hesitate to say so.

That is what I thought Don, I do see something.
Assuming your materials are 10%
Adding your 15% profit and materials to your stated numbers,
your monthly Gross sales would be about $10,700.
Your direct job costs are about $8,395 or 78.45%

You are operating on gross profit margins of 21.5%
That is what I was talking about.
Most of us are trying to work on margins of 50%

What you are missing is an owner's salary in your overhead numbers.
Your payment for field work is not an owners salary.
Your net profit is not an owners salary.
What would you get paid if you didn't paint?

I think that would fix the numbers a bit.

If some how you have a non painting salary and it is in the 7,388 number,
it shouldn't be there. That number belongs in the direct job costs.
Your salary belongs in the overhead.

I hope I am making sense