For example: In the chart 2-8 he has 1 employees volume at 350K yearly, he uses the remodeling model for this chart, but says "specialty contractors" should fall within a few percent of this number. I primarily do residential repaints. I figure my average job is $1200. If I as an employee of my company am able to complete and collect on two of these jobs weekly then my total yearly volume would be $124,800. That's a long shot from 350K

Now. The formula used to establish my markup is this: And I'm using numbers that I've projected for the year:

Dollar volume=$124,800

Overhead= $ 13,350 *

Net profit @ 8%=$9,984

*The book suggest 18,500 as a low overhead for specialty contractors I had the dig to find 13,350.

Ok, now the really interesting part. To compute markup we:

Add overhead and net profit

13,350

+ 9,984

--------

23,334

Then subtract that total from our dollar volume to find job cost:

124,800

-23,334

--------

101,466 yrly job cost

So...projected job cost for the year is 101,466 this is the amount we expect to spend to do our jobs for the year..now keep in mind I'm using MY projected numbers.

Ok, then Total dollar volume divided by job cost=

**Markup**

So:124,800 divided by 101,466=1.22% markup.

Ok...I don't know about you guys, but my average job cost is about $125.00-$150.00 for a repaint. Now to review the math. Lets say Sally wants her bedroom painted, I calculate my job cost (matierial etc..) to be $150.00

$150.00 (job cost)

x 1.22 (markup)

----------

$183.00 Sales price??!!

Now the author Mr Stone assures me the same formula can be used for any contracting business...but in my business my job cost just are not high enough per job for matierials purchased solely for that job to make any money with this formula...I would love to figure this thing out because it seems a fool proof way to figure mark up.

Generally...without any estimate software programs at this time, I will look at a job, figure my time to do the job, the multiply that by my hourly rate. I figure in the matierials then tack on 15% to matierial cost. Input anyone?